Montreal, PQ- December 28, 1999 – Paladin Labs Inc. (“Paladin”) (CDNX: PLB) announced today that it has agreed to issue new shares and has proceeded with the closing of the placement with the Dynamic QSSP Fund, for the acquisition of 72,500 shares of Paladin, at $6.90 per share, for a total amount of $500,250. In addition, Paladin agreed to issue broker warrants to Dundee Securities Corporation entitling Dundee to purchase a total of 1,450 common shares of Paladin at $6.90 per share in the first year and $7.94 in the second year.

About Paladin Labs Inc.

Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals, currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to info@paladin-labs.com.

Paladin Labs Inc. is a public company whose shares trade on the Vancouver Stock Exchange under the symbol PLB.

PALADIN LABS INC.

          The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval.

For more information:

Lennie Ryer, C.A., CFE Chief Financial Officer Paladin Labs Inc. Tel: 514-340-5067 e-mail: lryer@paladin-labs.com Web Site: www.paladin-labs.com