Paladin Labs Inc. announced today that it has entered into an agreement with Wyeth to acquire a bundle of products currently marketed in Canada by Wyeth that includes Anacin (acetylsalicylic acid) and Anbesol (benzocaine). Financial terms of the agreement were not disclosed.

Canadian net sales of the portfolio of products amounted to approximately $4 million for calendar 2008. The acquired products complement Paladin's growing OTC portfolio and represent the first significant deployment of funds since the company's recent financing that contributed gross proceeds of approximately $58.7 million.

"We are pleased to further expand our business relationship with Wyeth. In addition, these products have very strong brand recognition in Canada and strategically tie-in with our desire to build a broad and robust pain portfolio that includes both Rx and OTC solutions for Canadian patients," said Jonathan Ross Goodman, President and CEO of Paladin Labs. "Added to our existing base of OTC brands, these products will prove synergistic with existing distribution activities and provide additional critical mass and strategic options for further developing our Canadian OTC presence. As always, we remain focused on pursuing additional opportunities to extend our product portfolio."

About Paladin Labs

Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiary, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2008. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com. Contact:

Contacts: Paladin Labs Inc. Samira Sakhia Chief Financial Officer 514-669-5367 514-344-4675 (FAX) info@paladin-labs.com www.paladinlabs.com