Paladin Acquires Products From Wyeth

MONTREAL, QUEBEC, Jun 29 (MARKET WIRE) --
Paladin Labs Inc. (TSX: PLB) 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(R) (acetylsalicylic acid) and
Anbesol(R) (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.

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

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