Montreal, PQ- March 7, 2000 - Paladin Labs, Inc. ("Paladin") announced today that it has filed a preliminary prospectus with the securities commissions or equivalent regulatory authorities in all Canadian provinces relating to a proposed offering of common shares.

Paladin intends to use the net proceeds of this offering principally to license, acquire and develop product opportunities which have already been identified, to hire additional sales and marketing personnel and to fund new product launch costs. Paladin currently has 9,466,338 common shares outstanding.

The lead underwriter of the offering is CIBC World Markets Inc. other members of the underwriting syndicate are Yorkton Securities Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc. and TD Securities Inc.

Lennie Ryer, CFO of Paladin, said, "In keeping with our commitment to shareholders, this offering will enhance the liquidity of Paladin's common shares and provide the company with additional working capital to further its growth through product acquisitions and expansion into new therapeutic areas."

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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 Toronto Stock Exchange and the Canadian Venture Exchange under the symbol PLB.

For more information, please contact:

 

Lennie Ryer	Jason Hogan
CFO	Investor Relations
Paladin Labs Inc.	The Equicom Group Inc.
514-340-5067	416-815-0700 ext. 222
Fax:514-344-4675	Fax:416-815-0080
Email:lryer@paladin-labs.com	Email:jhogan@equicomgroup.com
Internet: www.paladin-labs.com	Internet: www.equicomgroup.com

The Toronto 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