Palatin Technologies Reports Fiscal Year 2006 First Quarter Results; Teleconference And Webcast Being Held Today At 10:00 A.M. EST

CRANBURY, N.J., Nov. 8 /PRNewswire-FirstCall/ -- Palatin Technologies, Inc. announced today financial results for the first quarter ended September 30, 2005. Total revenues in the quarter ended September 30, 2005 were $5.1 million, compared to $4.5 million for the same period in 2004. Palatin reported a net loss of $6.0 million, or ($0.11) per basic and diluted share, for the quarter ended September 30, 2005, compared to a net loss of $3.0 million, or ($0.06) per basic and diluted share, for the same period in 2004. At September 30, 2005, the Company had cash and investments totaling $25.5 million.

The increase in the net loss for the quarter ended September 30, 2005 versus the quarter ended September 30, 2004 was primarily attributable to increased research and development costs related to PT-141, a drug under development to treat male and female sexual dysfunction, and lower license fees from Mallinckrodt Healthcare related to NeutroSpec(TM), the Company’s product for imaging and diagnosing equivocal appendicitis, which was approved by the FDA in July 2004.

“We are pleased with the continued growth in commercial sales of NeutroSpec, which increased more than 50% over the previous quarter,” said Stephen T. Wills, chief financial officer of Palatin. “In addition, the initiation of two Phase 2B clinical trials during the quarter represents an important step in our development program for PT-141.” The previously- announced trials include a definitive “at-home” Phase 2B Efficacy study in approximately 600 erectile dysfunction (ED) patients, and an “at-home” Phase 2B Efficacy study in approximately 250 ED patients with diabetes mellitus.

PRODUCT REVENUE AND ROYALTIES

For the quarter ended September 30, 2005, royalty revenue on Mallinckrodt’s commercial sales of NeutroSpec amounted to $916,000, compared to $578,000 in the quarter ended June 30, 2005 and $327,000 in the quarter ended September 30, 2004. In the current period, the Company recorded no product sales revenue from shipments of NeutroSpec to Mallinckrodt, compared to $416,000 for the quarter ended September 30, 2004.

LICENSE, GRANTS AND CONTRACTS

In the quarter ended September 30, 2005, revenue from licenses, grants and contracts was $4.2 million, consisting of $4.1 million related to PT-141 pursuant to the Company’s collaboration agreement with King Pharmaceuticals, and $0.1 million from Mallinckrodt related to NeutroSpec. In the quarter ended September 30, 2004, revenue from licenses, grants and contracts was $3.7 million, consisting of $1.7 million related to PT-141 and $2.0 million related to the FDA approval of NeutroSpec.

COSTS AND EXPENSES

Total operating expenses for the quarter ended September 30, 2005 were $11.3 million compared to $7.6 million for the same period in 2004. Development costs related to PT-141 increased by $2.8 million primarily due to costs associated with two Phase 2 clinical trials that were initiated in the current period.

CASH POSITION

Palatin’s cash and investments totaled $25.5 million as of September 30, 2005, compared to $18.1 million at June 30, 2005. In September 2005, the Company received $10.0 million from the sale of common stock and warrants to King, pursuant to its collaboration agreement.

Palatin Technologies’ management will discuss the first quarter financial results and provide an update on corporate developments during a Teleconference/Webcast on November 8, 2005 at 10:00 a.m. EST.

Teleconference & Webcast Access Information * Q1-Fiscal Year 2006 11/8/2005 at 10:00 a.m. EST Conference Call - Live Domestic Dial-In Number 1-877-704-5378 International Dial-In Number 1-913-312-1292 * Q1-Fiscal Year 2006 Conference 11/8-11/21/2005 Call - Replay Domestic Dial-In Number 1-888-203-1112 International Dial-In Number 1-719-457-0820 Enter Pass Code I.D. # 3716924 * Webcast Live and Replay Access http://www.palatin.com About NeutroSpec(TM)

NeutroSpec(TM) is Palatin’s proprietary radiolabeled monoclonal antibody product for imaging and diagnosing infections. NeutroSpec is marketed and distributed by Palatin’s strategic collaboration partner, Mallinckrodt Imaging, a business unit of Tyco Healthcare. NeutroSpec has been approved by the FDA as an imaging agent for the diagnosis of equivocal appendicitis. The Company is also conducting additional clinical trials with NeutroSpec to evaluate its market potential as an imaging agent for other indications.

NeutroSpec includes a technetium-labeled anti-CD 15 monoclonal antibody which selectively binds to a type of white blood cell, neutrophils, involved in the immune response. When injected into the blood stream, NeutroSpec binds to neutrophils present at the infection site, labeling these cells with a radioactive tracer. As a result, physicians can rapidly image and detect an infection using a gamma camera, a common piece of hospital equipment that records radioactivity. NeutroSpec offers the advantage of direct injection and in-vivo labeling of white blood cells, leading to a rapid and highly specific functional image of an infection in less than an hour, whereas the current standard of care, ex-vivo labeled white blood cells, requires a blood sample to be taken from the patient, processed by a nuclear pharmacy and then re- injected into the patient, with diagnostic images usually not available until 12-24 hours later.

About PT-141

PT-141 is the first compound in a new drug class called melanocortin receptor agonists under development to treat sexual dysfunction. This new chemical entity is being evaluated in Phase 2 clinical trials studying the efficacy and safety profile of varying doses of this novel compound in men experiencing erectile dysfunction (“ED”) and women experiencing female sexual dysfunction (“FSD”). The mechanism of action of PT-141 may offer important benefits over currently available products for the treatment of ED because it acts on the pathway that controls sexual function without acting directly on the vascular system. Clinical data indicates that PT-141 may be effective in treating a broad range of patients suffering from ED. The nasal formulation of PT-141 currently under development is as convenient as oral treatments, is more patient-friendly than invasive treatments for ED, such as injections and trans-urethral pellets, and appears to result in a rapid onset of action.

Although the current ED market is primarily served by PDE-5 inhibitors which target the vascular system, a substantial unmet medical need for alternative sexual dysfunction therapies exists. Many patients are contraindicated for, or non-responsive to, PDE-5 inhibitors. For example, unlike PDE-5 inhibitors which are contraindicated in patients taking nitrates, primarily for the treatment of cardiovascular disease, current clinical data indicates that PT-141 should not be contraindicated in patients taking nitrates. Current literature indicates that about one half of all patients who receive an initial prescription for a PDE-5 inhibitor do not renew the prescription due chiefly to adverse side effects, drug interaction issues, and/or the lack of an acceptable level of responsiveness.

About Palatin Technologies, Inc.

Palatin Technologies, Inc. is a biopharmaceutical company developing melanocortin-based therapeutics. The Company has one product (NeutroSpec(TM)) on the market and a pipeline of product candidates in development. The Company’s internal research and development capabilities, anchored by its proprietary MIDAS(TM) technology, are fueling product development. Palatin’s strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize the products’ commercial potential. To date, the Company has formed partnerships with Mallinckrodt Imaging, a business unit of Tyco Healthcare, and King Pharmaceuticals, Inc. For additional information regarding Palatin, please visit Palatin Technologies’ website at http://www.palatin.com.

Any statements contained in this press release that refers to future events or other non-historical matters are forward-looking statements. Palatin disclaims any intent or obligation to update any forward-looking statements. Such statements are based on Palatin’s expectations as of the date of this press release and are subject to risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ from current expectations include, among others: the inherent uncertainty associated with financial projections; and such risks and uncertainties as detailed from time to time in Palatin’s public filings with the U.S. Securities and Exchange Commission, including but not limited to, Palatin’s Annual Report on Form 10-K for the year ended June 30, 2005 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005.

PALATIN TECHNOLOGIES, INC. Consolidated Statements of Operations (unaudited) Three Months Ended September 30, 2005 2004 REVENUES: Royalties $915,515 $327,314 Product sales - 416,325 Licenses, grants and contracts 4,228,263 3,747,980 Total revenues 5,143,778 4,491,619 OPERATING EXPENSES: Cost of product sales - 88,062 Royalties 183,329 71,882 Research and development 9,365,368 5,648,765 General and administrative 1,752,533 1,832,663 Total operating expenses 11,301,230 7,641,372 Loss from operations (6,157,452) (3,149,753) OTHER INCOME (EXPENSE): Investment income 124,222 112,288 Interest expense (2,426) (2,058) Total other income, net 121,796 110,230 NET LOSS $(6,035,656) $(3,039,523) Basic and diluted net loss per common share $(0.11) $(0.06) Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share 54,488,412 53,375,147

Palatin Technologies, Inc.

CONTACT: Stephen T. Wills, CPA, MST, EVP-Operations, Chief FinancialOfficer of Palatin Technologies, +1-609-495-2200, info@palatin.com; orCarney Dunstch (Media) of Burns McClellan, +1-212-213-0006,cdunstch@burnsmc.com, or Laura Siino (Investor Relations) of BurnsMcClellan, +1-212-213-0006, lsiino@burnsmc.com, both for PalatinTechnologies

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