FOR RELEASE JULY 1, 2008 at 7:30 a.m. ET Palatin Technologies Announces Amendment Expanding AstraZeneca Obesity Collaboration CRANBURY, NJ

FOR RELEASE JULY 1, 2008

Palatin Technologies

Expanding AstraZeneca

Obesity Collaboration

CRANBURY, NJ July 1, 2008

Palatin Technologies, Inc. (AMEX: PTN) today announced that AstraZeneca and Palatin

have amended their exclusive global licensing and research collaboration agreement to

discover, develop and commercialize compounds that target melanocortin receptors. The

original agreement was effective in January 2007.

Under the amendment, Palatin has

agreed to license additional compounds and associated intellectual property to

AstraZeneca. Palatin will receive development and regulatory milestone payments if any

additional compound advances into human clinical trials, and sales target milestone

payments and stepped royalties if any additional compound is commercialized.

Research scientists at AstraZeneca

and Palatin are working to complete election of a lead drug candidate for initial clinical

evaluation. Under the agreement, AstraZeneca is responsible for product commercialization,

product discovery and development costs.

The collaboration between

AstraZeneca and Palatin is very productive and has resulted in valuable scientific and

technical advances, stated Dr. Trevor Hallam, Palatin s Executive Vice

President for Research and Development. We look forward to initiating human clinical

The rate of obesity, a chronic

disease in which a person s body weight is seriously greater than is considered

healthy, has substantially increased over the past decade - impacting millions of

people worldwide - and is expected to continue to grow. Today, over 1.1 billion

adults and over 150 million children worldwide are overweight, with over 300 million

adults categorized as obese. According to the American Obesity Association, obesity is the

second leading cause of preventable death after smoking and nearly one-third of adults in

the United States are obese. Obesity is associated with a number of serious conditions

such as heart disease, stroke, cancer, high blood pressure, and diabetes. Americans spend

almost $120 billion on medical and related costs of obesity according to the U.S. Surgeon

General. Developing an effective therapeutic to address this serious condition could help

save billions of dollars as well as millions of lives.

AstraZeneca is a major international

healthcare business engaged in the research, development, manufacturing and marketing of

meaningful prescription medicines and supplier for healthcare services. AstraZeneca is one

of the world s leading pharmaceutical companies with healthcare sales of $29.55

billion and is a leader in gastrointestinal, cardiovascular, neuroscience, respiratory,

oncology and infectious disease medicines. For more information about AstraZeneca, please

visit: www.astrazeneca.com.

Palatin Technologies, Inc. is a

biopharmaceutical company primarily focused on discovering and developing targeted,

receptor-specific peptide and small molecule therapeutics, including melanocortin

( MC )-based therapeutics. Therapeutics affecting the activity of the MC family

of receptors may have the potential to treat a variety of conditions and diseases,

including sexual dysfunction, obesity and related disorders, cachexia, hemorrhagic shock

and inflammation-related diseases. The Company is exploring other receptor-specific

therapeutics, including natriuretic peptide receptor A ( NPRA ) agonist

compounds for use in treatment of acute systemic hypertension, congestive heart failure

and other diseases. Palatin s strategy is to develop products and then form marketing

collaborations with industry leaders in order to maximize their commercial potential. The

Company currently has collaborations with AstraZeneca and the Mallinckrodt division of

Covidien. 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 its development programs,

proposed indications for its product candidates, pre-clinical activities, marketing

collaborations, 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 shall 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 , 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 of this press release.