Paladin Labs Announces Proposed Change of Control of ProStrakan

and Further Investment in Pharmaplan  NEWS RELEASE TRANSMITTED BY MARKETWIRE  FOR: Paladin Labs Inc.  TSX SYMBOL:  PLB  February 22, 2011  Paladin Labs Announces Proposed Change of Control of ProStrakan and Further Investment in Pharmaplan  MONTREAL, CANADA--(Marketwire - Feb. 22, 2011) - Paladin Labs Inc (TSX:PLB), a leading Canadian specialty pharmaceutical company, today announced that, in connection with the proposed acquisition of ProStrakan by Kyowa Hakko Kirin Co., Ltd., it has agreed to accept repayment of its secured debt facility of GBP 50 million ($77,230,000). Per the terms of the Agreement, Paladin will receive a payment equivalent to the balance of interest payable for the first year together with a break free of GBP 2.0 million ($3,089,200). Moreover, Paladin will retain the rights to the products for Canada and some select emerging markets, it had licensed in connection with the Agreement. The acquisition is scheduled to close by early June 2011 and is subject to the approval of ProStrakan's shareholders.  Further, Paladin has entered into an agreement with Pharmaplan of South Africa to accelerate the purchase of Pharmaplan shares and acquire an additional 10% of Pharmaplan in 2011 as opposed to the original 5%. This will increase Paladin's ownership from 34.99% to 44.99% effective March 1, 2011   About Paladin Labs Inc.   Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. 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.  This press release may contain forward-looking statements and predictions. 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, 2009. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and 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.  -30- FOR FURTHER INFORMATION PLEASE CONTACT:  Paladin Labs Inc. Samira Sakhia, Chief Financial Officer 514-669-5367 514-344-4675 info@paladinlabs.com  INDUSTRY:  Pharmaceuticals and Biotech - Biotech, Pharmaceuticals and Biotech - Drugs, Pharmaceuticals and Biotech - Equipment and Supplies, Pharmaceuticals and Biotech - Trials  SUBJECT:  STK