FOR IMMEDIATE RELEASE

HEALTH CANADA RECOMMENDS EMERGENCY CONTRACEPTIVE PILL, PLAN B™, FOR SWITCH TO NON-PRESCRIPTION STATUS

Stakeholder and Public Consultations to be Completed Prior to Final Approval

Montreal, Canada, June 3, 2003 - Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, announced today that Health Canada is recommending the switch from prescription to non-prescription status for Plan B™, the company’s emergency contraceptive pill. Health Canada will now solicit feedback from stakeholders and initiate the process required to change the regulations that will allow Plan B™ to be sold without a prescription.

Currently, Plan B™ is available by prescription only. Authorities in Quebec, British Columbia and Saskatchewan, have given pharmacists “prescriptive authority”, allowing them to dispense Plan B™ without a physician’s prescription.

“This is the first step in a major victory for women in Canada,” said Dr. Andre Lalonde, Executive Director of the Society of Obstetricians and Gynaecologists of Canada.

“We have known for years that approximately 50 percent of pregnancies in Canada are not intended, and that approximately half of these unintended pregnancies may be terminated through invasive procedures. Plan B™ will reduce the number of unintended pregnancies safely and effectively while reducing the economic burden on the healthcare system and psychological impact on women,” commented Janet Cooper of the Canadian Pharmacists Association.

This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval and other factors that are discussed in the Management Discussion and Analysis published in the Company's annual report.

About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leading 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 Paladin Web Site at www.paladinlabs.com or send an email to info@paladin-labs.com.

About Women’s Capital Corporation
The Women’s Capital Corporation is a privately held company organized to bring Plan B™ to the U.S and Canadian markets and to develop other critically needed reproductive health products for women. Financing for Plan B™ has come, in large part, from U.S. foundations and from several local Planned Parenthood organizations that have made an equity investment in WCC. For more information about WCC, please visit the Plan B™ Web Site at www.go2planB.com, send e-mail to info@thewcc.com, or call 800-330-1271.

Source: Paladin Labs Inc.

For more information please contact:

Jennifer Gibbons Weber Shandwick Tel: (416) 964-6444 e-mail: jgibbons@webershandwick.com

Roohi Saeed BDDS | Weber Shandwick Tel: (514) 393-1180 x130 e-mail: saeed@bdds.com