FOR RELEASE

FOR RELEASE November 16,

2009 at 7:30 a.m. ET

Palatin Technologies,

Inc. Reports First Quarter Fiscal Year 2010 Results; Teleconference and Webcast to be

held on November 16, 2009

CRANBURY, NJ November 16, 2009

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

ended September 30, 2009. Palatin reported a net loss of $37,000, or $(0.00) per basic and

diluted share, for the quarter ended September 30, 2009, compared to a net loss of $4.3

million, or $(0.05) per basic and diluted share, for the same period in 2008. Total

revenues in the quarter ended September 30, 2009 were $3.7 million, compared to $754,000

for the same period in 2008.

The decrease in net loss for the

quarter ended September 30, 2009, compared to the same period last fiscal year, was

primarily due to an increase in revenue recognized under Palatin s license and

clinical trial agreements with AstraZeneca AB (AstraZeneca) and a net decrease in

operating expenses resulting from strategic restructuring and refocusing of Palatin s

clinical-stage development programs in 2008.

In September 2009, Palatin and

AstraZeneca signed an amendment to their exclusive research collaboration and license

agreement to discover, develop and commercialize compounds that target melanocortin

receptors for treatment of obesity and related indications. Under the terms of the

amendment to the parties collaboration agreement, AstraZeneca has agreed to make a

$2.5 million payment (received October 2009) and, subject to completion of certain tasks

relating to the program, $2.5 million in the first quarter of calendar year 2010. Under

the amendment, the terms of the original collaboration and license agreement signed in

January 2007 relating to milestone payments and royalty rates were restructured.

As of September 30, 2009,

Palatin s cash, cash equivalents and investments totaled $7.7 million, compared to

$7.8 million at June 30, 2009.

LICENSE AND CONTRACTS

ended September 30, 2009, Palatin recognized $3.7 million of contract revenue under its

collaboration agreement with AstraZeneca, compared to $746,000 for the same period in

2008. Based on the September 2009 amendment, Palatin will provide research services to

AstraZeneca through January 2010. Accordingly, contract revenue is being recognized over

the estimated remaining performance period.

expenses for the quarter ended September 30, 2009 were $3.8 million compared to $5.1

million for the comparable quarter of 2008, primarily due to a strategic restructuring

and refocusing of Palatin s clinical-stage development programs.

Palatin Technologies management

will discuss the first quarter financial results for the fiscal year ending June 30, 2010

and provide an update on corporate developments during a conference call and webcast on

November 16, 2009 at 11:00 a.m. ET.

Conference Call / Webcast

will host a conference call and webcast on November 16, 2009 at 11:00 a.m. Eastern Time

to discuss its first quarter of fiscal year 2010 financial results. Individuals

interested in listening to the conference call live can dial 888-801-6504 (domestic) or

913-312-4376 (international), passcode 8561334. 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 8561334. The

webcast and telephone replay will be available through November 23, 2009.

About Palatin Technologies, Inc.

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.

Forward-looking Statements

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 Statements of Operations

PALATIN TECHNOLOGIES,

Consolidated Balance Sheets