Paladin Labs Inc. ("Paladin") (TSE: PLB) is pleased to announce today that the Therapeutic Products Programme ("TPP") has granted Valtaxin^TM a notice of compliance permitting the sale of Valtaxin^TM in Canada.

In June 1999, Paladin acquired the exclusive Canadian distribution rights for Valtaxin^TM (valrubicin) from Anthra Pharmaceuticals, Inc. a US-based pharmaceutical company which focuses on the development of oncology therapeutics.

Valtaxin^TM is a chemotherapeutic anthracyline derivative indicated for intravesical therapy of refractory carcinoma in-situ (CIS) of the bladder. Refractory cases are those who have failed conventional first-line therapy with standard-of-care agents and are candidates for surgical removal of the bladder. In clinical trials, intravesical therapy with Valtaxin^TM has been shown to allow one-third of patients to retain their bladders for up to four years.

Bladder carcinoma is the sixth most common cancer in Canada with an incidence of 4800 cases per year. Of all patients diagnosed, approximately 15% are afflicted with CIS. Only 70% are responsive to BCG , the current gold standard of therapy. Currently, in Canada, there is no therapeutic alternative to cystectomy for patients who have failed all other modalities of treatment. In the US, Valtaxin^TM is the only FDA-approved agent specifically indicated for intravesical treatment of CIS and has Orphan Drug designation for this purpose.

Jonathan Goodman, President & CEO of Paladin stated "Valtaxin^TM is the first approved treatment for refractory CIS patients in Canada. We are confident that Valtaxin^TM will increase the quality of life for patients whose only other recourse is surgical removal of the bladder. We are pleased at how quickly Valtaxin^TM navigated through the TPP having received regulatory approval in less than 6 months from our application."

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 further information please contact:

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