Paladin Labs Inc. Announces Sale of T-ACT Platform to IMBiotechnologies

MONTREAL, QUEBEC--(Marketwire - August 13, 2009) - Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, announced today that it has sold its T-ACT™ technology platform to IMBiotechnologies Ltd. (“IMBio”), a private biotechnology company based in Edmonton, Canada.

“The turmoil in the financial markets has presented incredible opportunities to purchase innovative research at attractive prices as evidenced by our acquisition of ViRexx Medical Corp. (“ViRexx”) in December of 2008. The sale of the T-ACT™ technology platform to IMBio for a cash payment and future royalties allows us to quickly realize value on this promising technology, and places the technology with those best positioned to succeed” commented Joe Walewicz, Vice President Special Projects for Paladin Labs Inc.

Paladin continues to develop ViRexx’s proprietary Chimigen® Platform for Hepatitis B, Hepatitis C and other indications. In addition, Paladin is in active discussions for the license or sale of ViRexx’s AIT® technology platform.

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.

About IMBio

IMBio is a privately held Canadian biotechnology company whose focus is commercializing medical device products in the area of embolotherapy. Embolic agents target the treatment of benign and malignant growths (tumors). IMBio is located in Edmonton, Alberta, with strategic proximity to centres of scientific and clinical excellence in interventional radiology. IMBio’s Lead Product Candidate, OCL 500 AED, is a “first in class” biodegradable embolic agent for the treatment of malignant and non-malignant vascularised tumors. Examples of vascularised tumors include heptocellular carcinoma (HCC; liver cancer), renal cell carcinoma (RCC; kidney cancer) and uterine fibroids.

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.