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Paladin Acquires Tempra(R) from Bristol Myers Squibb

Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, announced today that it has entered into an agreement with Bristol Myers Squibb to acquire the Tempra® line of products in Canada including both syrup and drop formulations. Financial terms of the agreement were not disclosed.

According to IMS Canada, the Tempra® line of products achieved sales of approximately $3 million in 2010 representing approximately 19% of the total sales in Canada of paediatric acetaminophen products. The acquisition of Tempra® complements Paladin's existing paediatric over-the-counter (OTC) and prescription portfolio of products which includes Zincofax® for diaper rash, Anbesol® for teething, Cerumol® for ear wax removal, Twinject® for anaphylaxis, and Kaeopectate® for diarrhea."

"We are pleased to add Tempra® to our growing stable of trusted, valued paediatric brands. Tempra® has strong brand equity in Canada among parents and physicians. Paediatrics is an area of focus for Paladin and we intend to remain vigilant in expanding our presence in this area," said Jonathan Ross Goodman, President and CEO of Paladin Labs. "Building on our existing distribution activities, Tempra® will prove synergistic 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 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 and world markets. 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, 2009. 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.