FOR RELEASE

FOR RELEASE September 8,

2009 at 7:30 a.m. ET

Palatin Technologies,

Inc. Reports Fourth Quarter and Fiscal Year End 2009

Results; Teleconference and Webcast

to be held on September 8, 2009

CRANBURY, NJ September 8, 2009

Palatin Technologies, Inc. (NYSE Amex: PTN) today announced results for its fourth

quarter and fiscal year ended June 30, 2009. For the year ended June 30, 2009, total

revenues were $11.4 million, compared to $11.5 million for year ended June 30, 2008.

Palatin s net loss for the year ended June 30, 2009 was $4.8 million, or $(0.06) per

basic and diluted share, compared to a net loss of $14.4 million, or $(0.17) per basic and

diluted share, for the year ended June 30, 2008.

Palatin reported a net loss of $0.2

million, or $(0.00) per basic and diluted share, for the quarter ended June 30, 2009,

compared to a net loss of $5.2 million, or $(0.06) per basic and diluted share, for the

same period in 2008. Total revenues in the quarter ended June 30, 2009 were $4.2 million,

compared to $1.0 million for the same period in 2008.

The decreases in net loss for the

year and quarter ended June 30, 2009, versus the year and quarter ended June 30, 2008,

were primarily due to a net decrease in operating expenses resulting from strategic

restructuring and refocusing of Palatin s clinical-stage development programs and,

for the quarter ended June 30, 2009, an increase in revenue earned under Palatin s

license and clinical trial collaboration agreements with AstraZeneca AB (AstraZeneca).

Significant developments in

Palatin s business since June 30, 2008, include the following:

For the quarter ended June 30, 2009,

Palatin recognized $4.2 million of revenue under its agreements with AstraZeneca. In the

comparable quarter of 2008, Palatin recognized $0.8 million of revenue from AstraZeneca.

Revenue for the year ended June 30, 2009 was $11.4 million, compared to $11.5 million for

Total operating expenses for the

quarter ended June 30, 2009 were $4.5 million compared to $6.4 million for the comparable

quarter of 2008. For the year ended June 30, 2009, total operating expenses were $18.7

million, compared to $28.1 million for the prior year. The net decreases in operating

expenses for the quarter and year just ended were primarily due to strategic restructuring

and refocusing of Palatin s clinical-stage development programs, partially offset by

increases for clinical costs associated with Palatin s agreements with AstraZeneca.

Palatin s cash, cash equivalents

and investments totaled $7.8 million as of June 30, 2009, compared to $12.8 million at

June 30, 2008. Subsequent to the fiscal year end, Palatin received $2.8 million in net

proceeds from the August 2009 offering.

Conference Call / Webcast

Palatin will host a conference call

and webcast on September 8, 2009 at 11:00 a.m. Eastern Time to discuss its fourth quarter

of fiscal year 2009 financial results. Individuals interested in listening to the

conference call live can dial 800-776-0816 (domestic) or 913-312-0854 (international),

passcode 1405577. The webcast and replay can be accessed by logging on to the

Investor/Media Center-Webcasts section of Palatin s website at

http://www.palatin.com. A telephone and webcast replay will be available approximately one

hour after the completion of the call. To access the telephone replay, dial 888-203-1112

(domestic) or 719-457-0820 (international), passcode 1405577. The webcast and telephone

replay will be available through September 15, 2009.

Palatin Technologies, Inc. is a

biopharmaceutical company focused on discovering and developing targeted,

receptor-specific small molecule and peptide therapeutics. Palatin s strategy is to

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

maximize their commercial potential. For additional information regarding Palatin, please

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

Statements about future expectations

of Palatin Technologies, Inc., 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. Palatin 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 Palatin 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 protect its intellectual

property, and other factors discussed in Palatin s periodic filings with the

Securities and Exchange Commission. Palatin is not responsible for updating for events

that occur after the date of this press release.

(Financial Statement Data Follows)

PALATIN TECHNOLOGIES,

Consolidated Statement of Operations Data

PALATIN TECHNOLOGIES,

Consolidated Balance Sheet Data