PALADIN LABS TO ACQUIRE CANADIAN LICENSE TO PENNSAID

Paladin Labs Inc. (TSX:PLB), a Canadian speciality pharmaceutical company, has acquired Dimethaid Health Care Ltd. (DHCL), a subsidiary of Dimethaid Research Inc. (TSX:DMX). DHCL owns the Canadian license for Pennsaid(R), a lotion approved by Health Canada for the treatment of symptoms of knee osteoarthritis. In return for its ownership of DHCL, Dimethaid Research has received an up-front payment, a share in operating profits above minimum targets and a long-term supply agreement.

CCN Matthews (http://www.ccnmatthews.com/news/releases/show.jsp?action=showRelease&actionFor=552217)