FOR RELEASE NOVEMBER 9, 2007 at 7:30 a.m. ET Palatin Technologies, Inc. Reports Fiscal Year 2008 First Quarter Results; Teleconference and Webcast to be held on

FOR RELEASE NOVEMBER 9, 2007 at 7:30

Palatin Technologies,

Inc. Reports Fiscal Year 2008 First Quarter Results; Teleconference and Webcast to be

held on November 9, 2007

CRANBURY, NJ November 9, 2007

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

first quarter ended September 30, 2007. Palatin reported a net loss of $247,000, or $0.00

per basic and diluted share, for the quarter ended September 30, 2007, compared to a net

loss of $8.4 million, or ($0.12) per basic and diluted share, for the same period in 2006.

Total revenues for the quarter ended September 30, 2007 were $9.0 million, compared to

$4.9 million for the same period in 2006. As of September 30, 2007, the Company had cash,

cash equivalents and investments totaling $26.6 million.

The decrease in the net loss for the

quarter ended September 30, 2007 compared to the quarter ended September 30, 2006 was

primarily attributable to the recognition of deferred license revenue pursuant to the

termination of the collaboration agreement with King Pharmaceuticals, Inc. (King) on

bremelanotide, the Company s drug under development for the treatment of erectile

dysfunction and female sexual dysfunction. Prior to termination, the license revenue

received from King had been deferred, and was being recognized as revenue over the

estimated development period of the collaboration agreement. Upon termination, recognition

For the quarter ended September 30,

2007, Palatin recognized revenue under its collaboration agreement with King of $8.2

million, primarily related to the recognition of deferred license revenue as a result of

termination of our collaboration agreement, and $0.7 million of contract revenue related

to its collaboration with AstraZeneca AB. In the comparable quarter of 2006, Palatin

recognized $4.8 million of contract revenue from King, primarily related to reimbursement

revenue resulting from Palatin s clinical study activities with bremelanotide.

Total operating expenses for the

quarter ended September 30, 2007 were $9.6 million compared to $13.7 million for the

comparable quarter of 2006, reflecting lower development costs of bremelanotide following

the completion of certain Phase 2B clinical trials, which were partially offset by other

research and development spending and higher stock-based compensation charges.

Palatin s cash, cash equivalents

and investments totaled $26.6 million as of September 30, 2007, compared to $33.8 million

Palatin Technologies management

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

developments during a conference call and webcast on November 9, 2007 at 11:00 a.m. ET.

Palatin Technologies, Inc. is a

biopharmaceutical company focused on discovering and developing targeted,

receptor-specific small molecule and peptide therapeutics. 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. 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.

Forward-looking Statements

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

PALATIN TECHNOLOGIES,

Consolidated Statements of Operations

PALATIN TECHNOLOGIES,

Consolidated Balance Sheet Data