Paladin Labs Inc. (Paladin) (TSE: PLB) is pleased to announce financial results for the period ended June 30, 2000.

For the second quarter ended June 30, 2000, revenues rose to $5,746,976, a marginal increase over the same period in 1999. Net income in the second quarter totalled $1,130,378, or $0.11 per share, compared to $1,375,411 or $0.15 per share for the second quarter of 1999. Selling and administrative expenses amounted to $2,296,765, compared to $1,920,549 for the same period a year ago. Finally, research and development expenses were relatively unchanged from last year: $472,195, compared to $476,366 for Q2 1999.

"Selling and administrative expenses rose for the quarter as we invested resources into aggressive marketing and sales activities related to the launch of new products we acquired late last year," said Paladin Chief Financial Officer and Vice-President, Finance Lennie Ryer. "We expect income to be moderated for the balance of the fiscal year as we incur expenses associated with launching five new products."

Since the first quarter, the Company has continued to make progress on three main fronts: product acquisitions, clinical trials, and new product introductions. In May 2000, Paladin acquired the exclusive Canadian marketing and distribution rights for Androderm^TM from Watson Pharmaceutical, Inc. (NYSE:WPI). Androderm^TM is a transdermal patch delivery system for the treatment of male testosterone deficiency. With a five-year annual compounded growth rate of 40% for testosterone replacement products in Canada and no other patch delivery system approved in the marketplace, Androderm^TM represents a significant market opportunity for Paladin.

During the quarter, Paladin announced that two of the late-stage products in its pipeline reached important clinical milestones. Uniprost^TM, developed by United Therapeutics Corp. (NASDAQ:UTHR) is a non-intravenous treatment for pulmonary hypertension. The company reported positive preliminary results from the pivotal Phase III trial. Synsorb Cd^TM, developed by Synsorb Biotech Inc. (TSE:SYB), initiated two pivotal phase III trials for the treatment of recurrent C.difficle infections. Synsorb Cd^TM is the most advanced product under development for this disease that affects up to 800,000 patients annually worldwide.

With respect to product launches, Plan B^TM was released for sale at the end of June 2000 and has already begun to generate sales. The brand was launched to the Obstetrics/Gynecology community at the SOGC meeting in June and received a positive response from physicians. The product was also launched to Canadian pharmacists at the CPHA meeting.

Another key event during the quarter was the completion of the public issue of 2,900,000 common shares in April 2000. The shares were priced at $7 each and raised gross proceeds of $20,300,000. Proceeds from the offering are being used primarily to license, acquire and develop product opportunities, to hire additional sales and marketing staff, and to fund new product launches.

Subsequent to the second quarter's end, Paladin announced two more key acquisitions. DepoCyt^TM, developed by Skyepharma PLC (NASDAQ:SKYE, LSE:SKP), is a drug used to treat lymphomatous or neoplastic meningitis. DepoCyt^TM augments Paladin's growing oncology franchise. Similarly, Aptosyn^TM, developed by Cell Pathways, Inc. (NASDAQ: CLPA), is used to treat pre-cancerous conditions in the colon and has completed Phase II trials for prostate cancer, complements both Paladin's urological and oncological areas of focus. In addition, Valtaxin^TM, which is used to treat bladder cancer, received regulatory approval to be marketed in Canada.

Click here to see a PDF file of the financial statements.

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
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