(“Paladin”) (TSE:PLB) announced today that it has entered into an agreement with its underwriting syndicate with respect to an offering of 2,900,000 common shares at a price of $7.00 per common share for gross proceeds of $20,300,000. Closing is subject to the standard conditions set forth in the underwriting agreement, the filing of a final prospectus and obtaining a receipt from the regulatory authority of each of the provinces of Canada. A preliminary prospectus dated March 3, 2000, relating to these securities had been filed with securities commissions or similar authorities in the provinces of Canada. A final prospectus is expected to be filed on or about April 11, 2000. Closing of this offering is expected to occur on April 20, 2000.

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.

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 these securities in any province or any state in the United States in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction.

The underwriting syndicate is led by CIBC World Markets Inc., and its other members are Yorkton Securities Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., and TD Securities Inc.

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 Information about Paladin Labs Inc.:

 

Lennie Ryer, CA, CFE	Jason Hogan
Chief Financial Officer	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

PALADIN LABS INC.
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