FOR RELEASE MAY 13, 2008 at 7:30 a.m. ET Palatin Technologies Announces New Strategic Objectives and Reports Third Quarter 2008 Financial Results CRANBURY, N.J.

2008 at 7:30 a.m. ET

Palatin Technologies

Announces New Strategic Objectives and

Reports Third Quarter

2008 Financial Results

CRANBURY, N.J., May 13, 2008

Palatin Technologies, Inc. (Amex: PTN) today reported its financial results for the third

quarter ended March 31, 2008 and announced new strategic objectives as part of a

restructuring of its clinical-stage product portfolio and development programs. Palatin

will continue to develop products targeting melanocortin and natriuretic receptors in the

sexual dysfunction, obesity, and cardiovascular fields, including acute hospital care

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

hemorrhagic shock. The restructuring focuses the Company s resources on the programs

and opportunities that management believes are most likely to increase shareholder value.

Additional details will be provided by management in a conference call today at 11:00 a.m.

Strategic Restructuring

Palatin has undertaken a strategic

restructuring with the following elements and objectives:

Palatin has had a strong and

productive research effort focused on two challenging and exciting scientific areas:

melanocortin and natriuretic peptide receptors. We have generated a substantial amount of

data and an extensive product portfolio that allows us numerous exciting opportunities

to drive value for our shareholders, stated

Carl Spana, Ph.D., President and Chief Executive Officer of Palatin. Dr. Spana continued,

Concentrating our efforts on value drivers and matching our resources to those

projects with the highest potential for near-term success is our immediate priority.

The Company believes that the staff

reduction aligns the Company s human resources with its new strategic objectives and

will allow the Company to effectively advance its development and clinical programs. The

downsizing is expected to result in annual savings of approximately $3 million. Palatin

will record an estimated $400,000 charge for severance and related costs in the quarter

ending June 30, 2008. The Company, which ended the March 31, 2008 quarter with $17.6

million of cash, cash equivalents and available-for-sale investments, anticipates that the

restructuring will reduce its cash burn rate to approximately $16 million over the next

Palatin reported a net loss of $5.1

million, or $(0.06) per basic and diluted share, for the quarter ended March 31, 2008,

compared to a net loss of $6.7 million, or $(0.09) per basic and diluted share, for the

same period in 2007. Total revenues for the quarter ended March 31, 2008 were $747,000,

compared to $3.1 million for the same period in 2007.

The decrease in the net loss for the

quarter ended March 31, 2008 compared to the quarter ended March 31, 2007 was primarily

attributable to the reduction in development expenses for bremelanotide, the

Company s drug previously under development for the treatment of male and female

For the quarter ended March 31, 2008,

Palatin recognized $0.7 million of contract revenue related to its collaboration agreement

with AstraZeneca AB. In the comparable quarter of 2007, Palatin recognized $3.1 million of

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

bremelanotide development costs pursuant to the companies collaboration agreement,

which was terminated in the quarter ended September 30, 2007.

Total operating expenses for the

quarter ended March 31, 2008 were $6.0 million, compared to $10.2 million for the

comparable quarter of 2007, primarily due to lower development costs of bremelanotide.

Palatin s cash, cash equivalents

and available-for-sale investments totaled $17.6 million as of March 31, 2008.

Conference Call / Webcast

The Company will host a conference

call today at 11:00 a.m. Eastern Time to discuss its strategic restructuring and its third

quarter financial results. Individuals interested in listening to the conference call live

can dial 1-888-221-3884 (domestic) or 1-913-312-1433 (international). A live webcast of

the call is available online at www.palatin.com. A telephone replay will also be

available approximately one hour after the completion of the call. To access the telephone

replay, dial 1-888-203-1112 (domestic) or 1-719-457-0820 (international), passcode

1346503. The webcast and telephone reply will be available through May 20, 2008.

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.

(Financial Statement Data Follows)

PALATIN TECHNOLOGIES,

Consolidated Statements of Operations