Paladin Labs Inc.
TSX : PLB

Paladin Labs Inc.

April 30, 2007 18:02 ET

Paladin Completes Acquistion of BioEnvelop Inc.

MONTREAL, CANADA--(CCNMatthews - April 30, 2007) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, today announced the closing of the purchase of BioEnvelop Inc. a wholly owned subsidiary of BioEnvelop Technologies Inc. (TSX-V:BIE). BioEnvelop Inc. has expertise in developing and manufacturing rapidly dissolving edible films for the nutraceutical and pharmaceutical markets. Its products are currently generating revenue in both Canada and the United States.

Under the terms of the agreement which were announced on April 24, 2007, Paladin has acquired all of the issued and outstanding shares of BioEnvelop Inc. for cash consideration of $645,000 plus 114,355 common shares of Paladin. Of these amounts, $175,000 in cash and 15,900 in shares are payable should certain post-closing conditions be met.

"BioEnvelop's rapidly dissolving film strip technology provides Paladin with a platform from which to develop innovative nutraceutical, OTC and prescription products. We intend to leverage this new platform technology to help us improve the delivery of a number of existing off-patented products. We also believe that there exists significant potential to increase BioEnvelop's performance through focused promotion of its existing film-based product line," said Jonathan Ross Goodman, President and CEO.

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.

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, 2006. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or 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

Contact Information