"We are pleased to be able to structure a win-win solution with one of our longest standing partners in Canada," said Jonathan Ross Goodman, President and CEO. "Estring offers Canadian women a valuable treatment alternative for symptoms associated with urogenital estrogen deficiency. We are pleased to assume increased responsibilities for Estring in Canada and to keep it as a key component of our broader female health portfolio."

About Estring

Estring (estradiol vaginal ring) is an intravaginal ring that provides sustained local release of estrogen over a three-month period. Estring? is indicated for the treatment of post-menopausal urogenital complaints. Estring offers women the option of taking a local estrogen therapy for the treatment of these urogenital complaints.

About Paladin Labs Inc.

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 subsidiaries, 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.

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