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

FOR RELEASE SEPTEMBER 30, 2008

Palatin Technologies, Inc. Reports

Fourth Quarter and Fiscal Year End 2008

Results; Teleconference and Webcast to be held on

CRANBURY, NJ September 30,

2008 Palatin Technologies, Inc. (AMEX: PTN) announced today results for its fourth

quarter and fiscal year ended June 30, 2008. Palatin reported a net loss of $5.2 million,

or $(0.06) per basic and diluted share, for the quarter ended June 30, 2008, compared to a

net loss of $6.1 million, or $(0.07) per basic and diluted share, for the same period in

2007. Total revenues in the quarter ended June 30, 2008 were $1.0 million, compared to

$2.6 million for the same period in 2007.

The decrease in the net loss for the

quarter ended June 30, 2008 versus the quarter ended June 30, 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 years ended June 30, 2008 and

2007, total revenues were $11.5 million and $14.4 million, respectively. Palatin s

net loss for the year ended June 30, 2008 was $14.4 million, or $(0.17) per basic and

diluted share, compared to a net loss of $27.8 million, or $(0.36) per basic and diluted

share, for the year ended June 30, 2007.

The audited consolidated financial

statements in Palatin s Annual Report on Form 10-K for the year ended June 30, 2008

contains a going concern qualification from its independent registered public accounting

firm. As of June 30, 2008, the Company had cash, cash equivalents and investments totaling

FISCAL YEAR 2008 HIGHLIGHTS

Significant developments in

Palatin s business since June 30, 2007 include the following:

For the quarter ended June 30, 2008,

Palatin recognized $0.8 million of contract revenue under its collaboration agreement with

AstraZeneca. In the comparable quarter of 2007, Palatin recognized $0.7 million of

contract revenue from AstraZeneca and $1.9 million related to its collaboration agreement

Total operating expenses for the

quarter ended June 30, 2008 were $6.4 million versus $9.1 million for the comparable

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

Palatin s cash, cash equivalents

and investments totaled $12.8 million as of June 30, 2008, compared to $33.8 million at

Palatin Technologies management

will discuss the fourth quarter and year end financial results for the fiscal year ended

June 30, 2008 and provide an update on corporate developments during a conference call and

webcast on September 30, 2008 at 11:00 a.m. ET.

Webcast Access Information

Palatin Technologies, Inc. is a

biopharmaceutical company dedicated to the development of proprietary peptide, peptide

mimetic and small molecule compounds with a focus on melanocortin and natriuretic peptide

receptor systems. The melanocortin system is involved in a large and diverse number

of physiologic functions, and therapeutic agents modulating this system may have the

potential to treat a variety of conditions and diseases, including sexual dysfunction,

obesity and related disorders, ischemia and reperfusion injury, hemorrhagic shock and

inflammation-related diseases. The natriuretic peptide receptor system has numerous

cardiovascular functions, and therapeutic agents modulating this system may be useful in

treatment of heart failure, hypertension and other cardiovascular diseases. 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 the

Company s future expectations, including statements about its development programs,

proposed indications for its product candidates, pre-clinical activities, 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 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 Statement of Operations Data

PALATIN TECHNOLOGIES,

Consolidated Balance Sheet Data