PALADIN AND SPEPHARM ANNOUNCE NEW STRATEGIC RELATIONSHIP

MONTREAL, CANADA (March 3, 2010) - Paladin Labs Inc. (TSX: PLB), a leading Canadian
specialty pharmaceutical company, today announced that it has made a strategic investment in
SpePharm Holding B.V. SpePharm is a rapidly-growing, specialty pharmaceutical company
focused on acquiring, registering and marketing high medical value specialty medicines
throughout Europe.

Under the terms of this agreement, Paladin will invest €4 million Euros in SpePharm through a
Secured convertible debenture. Under the financing terms of this new relationship, conversion of
Paladin’s interest-bearing debt into equity would provide Paladin with an approximate 10%
ownership interest in SpePharm. Paladin also secures a right of first discussion for all future debt
funding during the term of the secured convertible debenture. In addition to these financing
elements, the relationship establishes significant future strategic collaboration and value potential
for both parties. As an immediate first step, in furtherance of Paladin’s interest in expanding its
geographic footprint and portfolio of products, it will be granted an exclusive license to Savene®
for South Africa and Israel. Savene® is the only approved treatment for anthracycline
extravastion, and has EMEA approval. As a second step, under the agreement, SpePharm and
Paladin grant each other reciprocal rights in their respective geographies that flow from any
future product acquisitions or licensing transactions. Given the strategic importance and broad
nature of this relationship, Paladin will also be entitled to place a representative on SpePharm’s
Supervisory Board.

"International growth will be a core component of Paladin’s future business and we view this
investment as a strategic yet risk mitigated way to expand our international reach,” stated
Jonathan Ross Goodman, President & CEO of Paladin Labs Inc. “SpePharm is a pan-European
specialty pharmaceutical company with a similar business strategy to Paladin of in-licensing and
acquiring innovative pharmaceuticals. By investing in SpePharm, we will be able to further
accelerate our existing business development search and acquisition activities via exposure to all
the transactions that SpePharm is looking at. Importantly, this will also enable Paladin to offer
potential licensors a capable and proven marketing partner for Europe. I look forward to sharing
business growth ideas with SpePharm in a more formal manner to the benefit of our respective
businesses.”

“We are pleased to see Paladin Labs become a strategic partner in SpePharm,” stated Jean-
François Labbé, Managing Director and Chief Executive Officer of SpePharm; “we believe that
this transaction not only provides us with additional capital to acquire new products but also
provides important business development synergies for the future benefit of both companies.”

About Savene®
Savene® is Europe's first and only proven and approved treatment for anthracycline extravasation.
Savene® was designated as an orphan drug by the FDA (the trademark in the USA is Totect®) in
March 2004 and by the EMEA in September 2001 and was granted marketing authorisation by
the EC on July 28, 2006. Savene® is provided as a kit containing 10 vials of 500 mg Savene®
Powder and 3 bags of specifically formulated Savene® Diluent for infusion, sufficient for a
complete treatment course of one extravasation event.