Palatin Technologies, Inc. press release dated

FOR RELEASE DECEMBER 19, 2005 AT 7:30 a.m. EST

Technologies, Inc. Announces Voluntary Suspension of Sales, Marketing and Distribution of

CRANBURY, NJ December 19, 2005 Palatin Technologies,

Inc. (AMEX: PTN) announced today that, as a result of safety concerns recently raised in

connection with the use of NeutroSpec diagnostic imaging agent kits for the

preparation of Technetium (99m Tc) fanolesomab, identified during routine

pharmacovigilance, Palatin and Tyco Healthcare Mallinckrodt have decided to voluntarily

suspend the sales, marketing and distribution of NeutroSpec and recall all existing

customer inventories of this product. Palatin and Mallinckrodt acted at the request of the

U.S. Food and Drug Administration (FDA). NeutroSpec, the only diagnostic agent approved

for imaging equivocal appendicitis, was approved for marketing by the FDA on July 6, 2004.

The companies previously reported to

the FDA the occurrence of several serious adverse events, including two deaths, involving

patients with severe underlying cardiopulmonary compromise who received NeutroSpec for

off-label uses. As a result of these events, Palatin and Mallinckrodt proposed revised

labeling for NeutroSpec to the FDA. The companies also distributed a Dear Healthcare

Provider letter on November 30, 2005 to provide the medical community with information

about the safe use of NeutroSpec.

At a meeting with the FDA on December

15, the FDA informed the companies that it had reconsidered the risk/benefit assessment of

NeutroSpec and determined that the product should not be administered to patients,

until a further understanding and review of the relationship between NeutroSpec and

reported serious adverse events is complete. Although the companies believe that these

safety concerns could potentially be addressed in other ways, they have agreed to

voluntarily take the actions requested by the FDA. Palatin and Mallinckrodt will

immediately take steps to inform the medical community of this decision.

The FDA also stated that they would

convene an Advisory Panel early next year to discuss the use of NeutroSpec with additional

safeguards, and evidence needed to continue use of the product for equivocal appendicitis,

as well as plans for other indications, most notably being osteomyelitis.

Palatin and Mallinckrodt are

reviewing data and assessing approaches for understanding the relationship between

NeutroSpec use and the observed serious adverse events. No final decisions concerning

future activities involving NeutroSpec have been made by Palatin or Mallinckrodt.

Since it was introduced to the

marketplace in September 2004, NeutroSpec net sales to customers, through September 30,

2005, totaled $9.8 million, of which Palatin received royalty payments of $2.5 million and

product transfer sales of $2.5 million from its marketing partner, Tyco Healthcare

Mallinckrodt. For the quarter ended September 30, 2005, NeutroSpec net sales to customers

totaled $3.7 million, of which Palatin received royalty payments of $0.9 million and no

product transfer sales.

Palatin will hold a conference call

and webcast on December 19, 2005 at 9:00 a.m. EST to discuss this matter:

Schedule for the Press

Release & Conference Call/Webcast

NeutroSpec is Palatin s

proprietary radiolabeled monoclonal antibody imaging agent for the diagnosis of equivocal

appendicitis. NeutroSpec is marketed and distributed by Palatin s strategic

collaboration partner, Tyco Healthcare Mallinckrodt, a business unit of Tyco Healthcare.

NeutroSpec includes a technetium-labeled anti-CD 15 monoclonal antibody which selectively

binds to a type of white blood cell, neutrophils, involved in the immune response. When

injected into the blood stream, the antibody binds to neutrophils present at the infection

site, labeling these cells with a radioactive tracer. As a result, physicians can rapidly

image and detect infection using a gamma camera, a common piece of hospital equipment that

records radioactivity.

Palatin Technologies, Inc. is a

biopharmaceutical company developing melanocortin-based therapeutics. The Company has a

pipeline of product candidates 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 Tyco Healthcare Mallinckrodt

and King Pharmaceuticals. For additional information regarding Palatin, please visit

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

Statements about the

Company s future expectations, including development and regulatory plans, 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 be subject to the safe harbors created thereby. Palatin s actual results

may differ materially from its historical results of operations and those discussed in the

forward-looking statements for various reasons, including, but not limited to the

Company s ability to carry out its business plan, successful development and

commercial acceptance of its products, ability to fund development of its technology, the

risk that products may not result from development activities, protection of its

intellectual property, ability to establish and successfully complete clinical trials for

product approval, need for regulatory approvals, dependence on its partners for

development of certain projects, 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 on this press release.