Montreal, Canada and Lincolnshire, Illinois, September 5, 2000 - Paladin Labs Inc. (TSE:PLB) and BioSante Pharmaceuticals, Inc. (OTCBB:BTPH; CDNX:BAI) today announced an agreement whereby Paladin will sub-license BioSante's portfolio of female hormone replacement therapies (HRT) for marketing in Canada.

"This agreement provides BioSante a strong partner with proven expertise in obtaining regulatory approval and in marketing novel pharmaceutical products in Canada," said Stephen M. Simes, president and CEO of BioSante. "Once regulatory approval is achieved, Paladin will be instrumental in the successful marketing of our innovative hormone therapies to the Canadian market."

Under the terms of the agreement, BioSante will sub-license its hormone replacement therapies to Paladin for an initial investment, future milestone payments, and royalties on sales. The milestone payments will be in the form of a series of equity investments by Paladin in BioSante common stock at a 10 percent premium to BioSante's market price at the time the equity investment is made.

Simultaneous with the license agreement, Paladin has made an initial investment of US$500,000 in BioSante in the form of a convertible debenture, convertible into BioSante common stock at US$1.05 per share. Paladin may convert the debenture anytime after January 1, 2001. If Paladin does not convert the debenture by March 31, 2001, BioSante may require it to be converted.

"BioSante's management team has a strong track record of successfully developing pharmaceutical products, specifically hormone replacement therapies. Once developed, these products will expand our pipeline of hormone replacement products, which includes Androderm™, Circadin™, and DHEA," said Paladin president and CEO Jonathan Goodman. "Furthermore, the equity investment in BioSante reflects our confidence in the company's potential."

BioSante's portfolio of hormone therapeutics will address a variety of hormone deficiencies in women. Symptoms of these hormone deficiencies include hot flashes, vaginal atrophy, decreased libido and osteoporosis. The market for hormone replacement products is well over a billion dollars in size in the U.S. alone and is expected to double over the next five years.

In Canada, these products will compete in established markets valued at approximately C$100 million and marketed to physicians known to be receptive to the introduction of novel drug delivery systems such as patches and gels.

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.

About BioSante
BioSante is an emerging pharmaceutical company developing a pipeline of hormone replacement products to treat testosterone deficiency in men and estrogen deficiency in women. BioSante also is developing its nanoparticle-based platform technology for novel vaccines, vaccine adjuvants and drug delivery systems. For information about BioSante please visit the BioSante website at www.biosantepharma.com.

 

For further information please contact:

Paladin Labs Inc

Lennie Ryer, CA, CFE	Mike Polonsky
Chief Financial Officer	Account Manager
Paladin Labs Inc.	The Equicom Group Inc.
Tel:514-340-5067	Tel:416-815-0700x231
Fax:514-344-4675	Fax:416-815-0080
Email:lryer@paladin-labs.com	Email:mpolonsky@equicomgroup.com
Web Site: www.paladin-labs.com	Web Site: www.equicomgroup.com

BioSante Pharmaceuticals, Inc.

Phillip Donenberg
Chief Financial Officer	.
Tel:847-793-2458
Email:donenber@biosantepharma.com
Web Site: www.biosantepharma.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 market approval.

For BioSante Pharmaceuticals, Inc.
This news release contains forward-looking statements within the meaning of Private Securities Litigation Act of 1995 about BioSante. The statements regarding BioSante contained in this press release that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," or "plans," or comparable technology are forward-looking statements based on current expectations and assumptions, and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to BioSante that could cause such material differences are identified and discussed from time to time in BioSante's filings with the Securities and Exchange Commission, including those factors discussed on pages 12 to 20 of BioSante's Form 10-KSB, which discussion also is incorporated herein by reference.

The Canadian Venture Exchange has neither approved nor disapproved the information herein contained.