(“Paladin”) (TSE:PLB) announced today that is has been granted exclusive Canadian distribution rights to a testosterone transdermal system for use in males by Watson Pharmaceuticals, Inc. (NYSE:WPI).

Androderm®, a testosterone transdermal delivery system developed by Watson, is used in the treatment of male testosterone deficiency. Manufactured by Watson's Salt Lake City, Utah facility, Androderm® is sold in the United States by Watson and in other countries under various brand names through other Watson marketing partnerships.

Jonathan Goodman, President and Chief Executive Officer of Paladin, said: "We are delighted to have been selected to commercialize Watson's testosterone transdermal patch for use in males in Canada. We view this transaction as an affirmation of our strategy of acquiring and licensing innovative pharmaceuticals for the Canadian market."

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.
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