Paladin Labs Announces the Canadian Launch of VagiSense(TM)

MONTREAL, CANADA--(Marketwire - March 5, 2013) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, announced today the launch of VagiSense™, Canada's only over-the-counter vaginal infection screening test for the detection of bacterial vaginosis and trichomoniasis.

VagiSense™ is an easy-to-use and reliable self diagnostic test that will help women differentiate between a possible vaginal yeast infection and a bacterial/parasitic infection in 10 seconds. There are approximately 2.2 million over-the-counter vaginal yeast infection treatments sold annually in Canada(1). Studies demonstrate that 66%(2) of women incorrectly self-diagnose vaginal yeast infections. Bacterial vaginosis is, in fact, the most common cause of vaginal symptoms and must be treated with prescription medication(3).

It is estimated that over 29% of women aged 14-49 have bacterial vaginosis at any given time(4). VagiSense™ will help guide women to the appropriate treatment and to faster relief of symptoms.

"We are very pleased to announce the launch of VagiSense™, an innovative and unique product in Canada," said Mark Beaudet, interim President and Chief Executive Officer of Paladin Labs Inc. "Proper diagnosis is the first step to quick relief and we believe VagiSense™ will play an important role in guiding and reassuring Canadian women in their diagnosis of vaginitis."

Paladin obtained the exclusive rights to market and sell VagiSense™ (VS-SENSE OTC) in Canada, Latin America and Sub-Saharan Africa from Common Sense Limited in August 2011.

About VagiSense™

VagiSense™ is a non-prescription home screening test that reacts to vaginal pH and buffer capacity to detect vaginal bacterial and parasitic infections. It is intended for women of menstruating age who have any of the following symptoms: vaginal itching or burning, abnormal vaginal discharge colour or odour, or excessive discharge.

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, please visit the Company's web site at www.paladinlabs.com.

Forward Looking Statements Related to Paladin

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, 2011. 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.

(1) IMS Health Canada, CDH Data (Canadian Drug Store and Hospital Purchases Audit), 2012.

(2) Ferris DG et al. Over-the-counter antifungal drug misuse associated with patient-diagnosed vulvovaginal candidiasis. Obstet Gynecol 2002;99:419-25.

(3) Canadian Guidelines on Sexually Transmitted Infections, Public Health Agency of Canada, Revised version of the Canadian STI Guidelines, 2006 edition.

(4) Koumans EH, Sternberg M, Bruce C, McQuillan G, Kendrick J, Sutton M, Markowitz LE. The prevalence of bacterial vaginosis in the United States, 2001-2004; associations with symptoms, sexual behaviors, and reproductive health. Sex Transm Dis. 2007 Nov;34(11):864-9.