DATED MAY 9, 2006 Palatin Technologies, Inc. press release dated

FOR RELEASE MAY 9, 2006 at

Technologies, Inc. Reports Fiscal Year 2006 Third Quarter Results;

Webcast Being Held Today at 10:00 a.m. EDT

CRANBURY, NJ May 9, 2006

Palatin Technologies, Inc. (AMEX: PTN) announced today financial results for the third

quarter ended March 31, 2006. Total revenues in the quarter ended March 31, 2006 were $5.0

million, compared to $2.8 million for the same period in 2005. Palatin reported a net loss

of $7.6 million, or ($0.13) per basic and diluted share, for the quarter ended March 31,

2006, compared to a net loss of $3.9 million, or ($0.07) per basic and diluted share, for

the same period in 2005.

The increase in the net loss for the

quarter ended March 31, 2006 versus the quarter ended March 31, 2005 was primarily

attributable to increased development costs related to bremelanotide, a drug under

development for the treatment of erectile dysfunction (ED) and female sexual dysfunction

(FSD). The Company is currently conducting five clinical studies with bemelanotide that

were initiated in the current fiscal year.

In the current period, the Company

recorded no royalty revenue related to commercial sales by Mallinckrodt of NeutroSpec,

versus $0.5 million in the quarter ended March 31, 2005. There were no product sales in

either period. In December 2005, the Company and Mallinckrodt suspended all NeutroSpec

sales and marketing activities.

LICENSES, GRANTS AND

In the quarter ended March 31, 2006,

the Company recognized revenue from licenses, grants and contracts of $5.0 million,

primarily related to the reimbursement by King Pharmaceuticals, Inc. of bremelanotide

costs pursuant to the companies collaboration agreement. In the quarter ended

31, 2005, revenue from licenses, grants and contracts related to bremelanotide was $2.3

million, reflecting lower reimbursable costs incurred by Palatin in the period.

Total operating expenses for the

quarter ended March 31, 2006 were $12.8 million, compared to $6.9 million for the same

period in 2005. Development costs directly related to bremelanotide increased by $4.8

million, primarily reflecting costs associated with clinical trials that were initiated in

the current fiscal year. Costs of other research and development programs also increased,

as did spending for research personnel and facilities.

Palatin s cash, cash equivalents

and investments totaled $16.3 million as of March 31, 2006, compared to $18.1 million at

June 30, 2005. In April 2006, the Company received $25 million of net proceeds from the

sale of common stock and warrants.

Palatin Technologies management

will discuss the third quarter financial results and provide an update on corporate

developments during a conference call and webcast on May 9, 2006 at 10:00 a.m. EDT.

Conference Call and Webcast Access Information

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 Company s 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. The

Company 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 , 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.

PALATIN TECHNOLOGIES, INC.

Consolidated Statements of Operations

Three Months Ended March 31, Nine Months Ended March 31,

---------------------------------- -----------------------------------

--------------- --------------- ---------------- ---------------

Royalties $ - $ 465,974 $ 1,508,862 $ 1,007,647

Product sales - - - 1,707,825

Licenses, grants and

contracts 5,045,025 2,340,869 13,267,079 9,396,719

--------------- --------------- ---------------- ---------------

Total revenues 5,045,025 2,806,843 14,775,941 12,112,191

--------------- --------------- ---------------- ---------------

Cost of product sales - 5,924 2,041,175 226,765

Royalties - 85,282 299,995 244,676

Research and development 10,954,466 4,854,417 29,639,751 16,619,541

General and administrative 1,838,967 1,958,738 5,022,069 5,297,633

--------------- --------------- ---------------- ---------------

Total operating 12,793,433 6,904,361 37,002,990 22,388,615

--------------- --------------- ---------------- ---------------

Loss from operations (7,748,408) (4,097,518) (22,227,049) (10,276,424)

--------------- --------------- ---------------- ---------------

OTHER INCOME (EXPENSE):

Investment income 155,677 161,169 496,917 440,803

Interest expense (9,375) (3,907) (17,477) (10,946)

--------------- --------------- ---------------- ---------------

Total other income, net 146,302 157,262 479,440 429,857

--------------- --------------- ---------------- ---------------

Loss before income taxes (7,602,106) (3,940,256) (21,747,609) (9,846,567)