DATED APRIL 12, 2006 Palatin Technologies, Inc. press release dated

FOR RELEASE APRIL 12, 2006 AT 7:30 a.m. EDT

Palatin Technologies,

Inc. to Raise $27 Million in Offering

CRANBURY, NJ April 12, 2006

Palatin Technologies, Inc. (AMEX: PTN) announced today that it has entered into

definitive purchase agreements with certain institutional investors for the sale of 11

million units, each consisting of one share of its common stock and a warrant to purchase

0.30 shares of its common stock, at a purchase price of $2.44 per unit. The warrants have

a five-year term and an exercise price of $2.88 per share. The warrants become exercisable

six months after purchase of the unit. The transactions will provide gross proceeds of

approximately $27 million to Palatin, before deducting costs associated with the offering.

Palatin intends to use the net proceeds from the sale of the units for general corporate

This investment significantly

enhances our financial resources and provides additional operational flexibility as we

advance the clinical development of our lead product candidate, bremelanotide, said

Carl Spana, President and Chief Executive Officer of Palatin.

The shares of common stock and the

shares of common stock underlying the warrants will be registered upon issuance under

Palatin s existing shelf registration statement on Form S-3, which was declared

effective by the Securities and Exchange Commission on March 31, 2006.

We raised this new capital from

highly respected long-term investment firms that we feel will expand the strength of our

supporters in the financial markets, said Stephen T. Wills, Chief Financial Officer

The Company expects the closing of

the transactions, which is subject to certain conditions, to take place on or before April

17, 2006. MDB Capital Group LLC served as sole placement agent for this offering. The

Company will pay the placement agent a total cash fee equal to 7% of the total purchase

price of the units. The lead investor in the offering was Vivo Ventures, with significant

participation from Palo Alto Investors, ProMed Management, Efficacy Biotech, Greenway

Capital, RA Capital Associates and Great Point Partners.

This press release shall not

constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any

sale of these securities in any jurisdiction in which such an offer, solicitation or sale

would be unlawful prior to the registration or qualification under the securities laws of

any such jurisdiction.

Palatin Technologies, Inc. is a

biopharmaceutical company primarily engaged in the development of melanocortin-based

therapeutics. The Company s lead product candidate, bremelanotide, is currently in

Phase II clinical trials for both male and female sexual dysfunction. The Company s

internal research and development capabilities, anchored by its proprietary MIDAS

technology, are fueling product development. Palatin s strategy is to develop

products and then form marketing collaborations with industry leaders in order to maximize

their commercial potential. To date, the Company has formed partnerships with Tyco

Healthcare Mallinckrodt and King Pharmaceuticals. For additional information regarding

Palatin, please visit Palatin Technologies website at http://www.palatin.com.

Statements about the Company s

future expectations, including statements about the closing of the transactions and the

Company s use of proceeds, and about its development programs, proposed indications

for its product candidates, pre-clinical activities and regulatory plans, and all other

statements in this document other than historical facts, are forward-looking

statements within the meaning of Section 27A of the Securities Act of 1933, Section

21E of the Securities Exchange Act of 1934 and as that term is defined in the Private

Securities Litigation Reform Act of 1995. The Company intends that such forward-looking

statements be subject to the safe harbors created thereby. Palatin s actual results

may differ materially from those discussed in the forward-looking statements for various

reasons, including, but not limited to the Company s ability to fund development of

its technology, ability to establish and successfully complete clinical trials and

pre-clinical studies and the results of those trials and studies, dependence on its

partners for certain development activities, need for regulatory approvals and commercial

acceptance of its products, ability to recommence marketing and gain commercial acceptance

of NeutroSpec and ability to protect its intellectual property, and other factors

discussed in the Company s periodic filings with the Securities and Exchange

Commission. The Company is not responsible for updating for events that occur after the

date on this press release.