Paladin Labs Inc.
TSX : PLB

Paladin Labs Inc.

December 18, 2006 16:00 ET

Paladin Shares Now Qualify for Quebec SME Growth Stock Plan

MONTREAL, QUEBEC--(CCNMatthews - Dec. 18, 2006) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, today announced that it received confirmation from Le Ministere du Revenu du Quebec that its common shares qualify for the SME Growth Plan and are registered by the Autorite des Marches Financiers.

As a result, common shares of Paladin purchased on the secondary market to replace qualifying shares or securities sold by an individual qualify as valid shares for a "coverage" operation in accordance with the SME Growth Stock Plan.

"We are pleased that Paladin's common shares are eligible within the Quebec SME Growth Stock Plan as it constitutes an incentive for individual investing on the public market particularly in the retail segment," said Jonathan Ross Goodman, President and CEO of Paladin Labs.

Further information on the SME Growth Stock Plan can be found on Le Ministere du Revenu du Quebec web site at: www.revenu.gouv.qc.ca.

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty pharmaceutical company focused on developing, 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.

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, 2005. 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

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