(“Paladin”) (TSE:PLB) today announced its results for the first quarter ended March 31, 2000. Revenues for the first quarter were $2,683,075, an increase of 14% over revenues of $2,354,210 for the comparable period in the previous year. Revenue growth stemmed largely from sales of new products launched in the first quarter.

Paladin recorded net income of $298,662, or $0.03 per share, for the three month period ended March 31, 2000, compared to $818,802, or $0.09 per share for the same period a year earlier. Earnings were adversely affected by increased product launch expenses and research and development expenditures accruing early in the fiscal year.

The revenue growth was lead by increased sales of existing products such as Statex® (Narcotic Analgesic) and Ridaura®(Rheumatoid Arthritis) as well as first time revenues from Paladin's newly introduced line of dermatological products including Aquaderm®, P&S®, X-Seb® and Ultramide®.

Selling and administrative expenses amounted to $1,044,903 for the first quarter ended March 31, 2000, compared to $860,295 for the same period a year earlier. The increase in selling and administrative expenses is largely attributable marketing and sales activities related to the recent launch of new products acquired in late fiscal 1999.

Research and Development expense totaling $323,547 for the period ended March 31, 2000, the corresponding amounts for the same period last year was $138,577. Research and development on Paladin's sustained release narcotic analgesic is continuing to advance through patient recruitment. The increase in research and development spending in the first quarter of the fiscal year will normalize as the fiscal year progresses.

Lennie Ryer, Paladin's Vice-President Finance and CFO stated, "The products that we are acquiring, developing and preparing to launch show significant financial promise for Paladin. We have successfully expanded our infrastructure through the recruitment of a talented team of professionals that will support our growth and profitability in the coming months and years."

PALADIN LABS INC. FINANCIAL STATEMENTS MARCH 31, 2000(acrobat reader format)

POSITIVE RESEARCH FINDINGS

In terms of important clinical milestones, Paladin has enjoyed progress on three fronts.

Uniprost®, a product designed to be a non-intravenous treatment of pulmonary hypertension (PH), achieved positive preliminary results from its pivotal Phase III trial.

Synsorb Cd®, a product designed to prevent recurrent Clostridium difficile antibiotic associated diarrhea (CDAD), initiated Phase III trials.

Paladin's corporate partner, Connetics Corporation (NASDAQ:CNCT), submitted an Investigational New Drug application (IND) in the United States for a Phase II clinical trial to investigate ConXn® (Recombinant Human Relaxin) in the treatment of peripheral vascular disease (PVD). The trial will also examine the product's effect in treating kidney and cardiovascular disease, which are often present in PVD patients. Paladin has the exclusive Canadian license for ConXn® for all current and future indications.

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 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