(“Paladin”) (TSE:PLB) announced today that it has completed the public issue of 2,900,000 common shares pursuant to the long form prospectus dated April 10, 2000.

The common shares were priced at $7.00 per share, for gross proceeds of $20,300,000. Proceeds from this share offering, net of underwriting and issue fees, will be used (i) to license, acquire and develop product opportunities already identified; (ii) to hire additional sales and marketing personnel and to fund new product launch costs; and (iii) for general corporate purposes.

Paladin has granted to the Underwriters an option to acquire up to an aggregate of 435,000 additional common shares at the offering price of $7.00 to cover over-allotments, if any, and for market stabilization purposes. Such option expires 30 days after closing of the offering.

The underwriting syndicate, led by CIBC World Markets Inc., includes 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
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