Palatin Technologies, Inc. press release dated

Technologies Settles Claim in License Agreement Dispute

with Competitive Technologies

CRANBURY, N.J., June 23,

2005/PRNewswire-FirstCall/ Palatin Technologies, Inc. (AMEX:PTN) today announced

that it has settled its dispute with Competitive Technologies, Inc. (AMEX:CTT) regarding

its license agreement with CTT for certain peptides for the treatment of sexual

Under the settlement agreement,

Palatin has agreed to pay CTT $1.7 million cash and to issue CTT 170,000 shares of PTN

common stock. This payment is in settlement of CTT s arbitration demand for $4

million, as a result of the closing of Palatin s Collaborative Development and

Marketing Agreement with King Pharmaceuticals, Inc. (NYSE:KG). Palatin and King continue

to retain all rights to the future development of PT-141.

The Collaborative Agreement with King

included a sublicense under Palatin s license agreement with CTT. It also included a

license to PT-141, Palatin s proprietary lead therapeutic currently in development

for the treatment of both male and female sexual dysfunction. PT-141 was developed by

Palatin scientists and patents on PT-141 are owned solely by Palatin. Palatin has

additional PT-141 patent applications pending in selected countries throughout the world.

Carl Spana, Ph.D., President and

Chief Executive Officer of Palatin commented, Based upon our review of the claim, as

well as the expense of continuing the litigation, we believe that it is in Palatin s

best interest to resolve this matter and concentrate on continuing the development of

PT-141 and our other product candidates.

PT-141 is the first compound in a

new drug class called melanocortin receptor agonists under development to treat sexual dysfunction. This new chemical entity is

being evaluated in phase II clinical trials studying the efficacy and safety profile of varying doses of this novel compound in

men experiencing erectile dysfunction ( ED ) and women experiencing female sexual dysfunction ( FSD ). The

mechanism of action of PT-141 may offer important benefits over currently available products for the treatment of ED because it

acts on the pathway that controls sexual function without acting directly on the vascular system. Clinical data indicates that

PT-141 may be effective in treating a broad range of patients suffering from ED. The nasal formulation of PT-141 currently under

development is as convenient as oral treatments, is more patient-friendly than invasive treatments for ED, such as injections and

trans-urethral pellets, and appears to result in a rapid onset of action.

Although the current ED market is

primarily served by PDE-5 inhibitors which target the vascular system, a substantial unmet

medical need for alternative sexual dysfunction therapies exists. Many patients are

contraindicated for, or non-responsive to, PDE-5 inhibitors. For example, unlike PDE-5

inhibitors which are contraindicated in patients taking nitrates, primarily for the

treatment of cardiovascular disease, current clinical data indicates that PT-141 should

not be contraindicated in patients taking nitrates. Current literature indicates that

about one half of all patients who receive an initial prescription for a PDE-5 inhibitor

do not renew the prescription due chiefly to adverse side effects, drug interaction

issues, and/or the lack of an acceptable level of responsiveness.

Palatin Technologies, Inc. is a

biopharmaceutical company developing melanocortin-based therapeutics. The Company has one product on the market generating revenue

and a pipeline of product opportunities in development. 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. To-date,

the Company has formed partnerships with Mallinckrodt, a subsidiary of Tyco Healthcare (NYSE:TYC), and King Pharmaceuticals

(NYSE:KG). For additional information regarding Palatin, please visit Palatin Technologies Palatin s website at

About King Pharmaceuticals

King Pharmaceuticals,

headquartered in Bristol, Tennessee, is a vertically integrated branded pharmaceutical company. King, an S&P 500 Index

company, seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through

in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products in attractive markets and the

strategic acquisition of branded products that can benefit from focused promotion and marketing and product life-cycle management.

Any statements contained in this

press release that refers to future events or other non-historical matters are

forward-looking statements. Palatin disclaims any intent or obligation to update any

forward-looking statements. Such statements are based on Palatin s expectations as of

the date of this press release and are subject to risks and uncertainties that could cause

actual results to differ materially. Important factors that could cause actual results to

differ from current expectations include, among others, the inherent uncertainty

associated with financial projections, and such risks and uncertainties as detailed from

time to time in Palatin s public filings with the U.S. Securities and Exchange

Commission, including but not limited to, Palatin s Annual Report on Form 10-K for

the year ended June 30, 2004 and its Quarterly Reports on Form 10-Q for the quarterly

periods ended September 30, 2004, December 31, 2004 and March 31, 2005.