Palatin Technologies, Inc. press release dated

FOR RELEASE November 10, 2006 at

Palatin Technologies,

Inc. Reports Fiscal Year 2007 First Quarter Results;

Conference Call and Webcast Being

Held Today at 10:00 a.m. EST

CRANBURY, NJ November 10, 2006

Palatin Technologies, Inc. (AMEX: PTN) announced today financial results for the

first quarter ended September 30, 2006. Total revenues in the quarter were $4.9 million,

compared to $5.1 million for the same period in 2005. Palatin reported a net loss of $8.4

million, or ($0.12) per share, for the quarter ended September 30, 2006, compared to a net

loss of $6.0 million, or ($0.11) per share, for the same period in 2005.

The increase in the net loss for the

quarter ended September 30, 2006 versus the quarter ended September 30, 2005 was primarily

attributable to increased development costs related to bremelanotide, a drug under

development for the treatment of erectile dysfunction (ED) and female sexual dysfunction

(FSD). The Company recently announced positive results of two Phase 2 at-home clinical

studies in ED patients and is currently conducting in-clinic safety studies in ED and an

at-home efficacy study in FSD with its strategic development partner, King

In the current period, the Company

recorded no royalty revenue related to commercial sales by Mallinckrodt of NeutroSpec,

versus $0.9 million in the quarter ended September 30, 2005. There were no product sales

in either period. In December 2005, the Company and Mallinckrodt suspended all NeutroSpec

sales and marketing activities.

LICENSES, GRANTS AND

In the quarter ended September 30,

2006, the Company recognized revenue from licenses, grants and contracts of $4.9 million,

primarily related to the reimbursement by King of bremelanotide costs pursuant to the

companies collaboration agreement. In the quarter ended September 30, 2005, revenue

from licenses, grants and contracts was $4.2 million, reflecting lower reimbursable

bremelanotide costs incurred by Palatin in the period.

Total operating expenses for the

quarter ended September 30, 2006 were $13.7 million, compared to $11.3 million for the

same period in 2005. Development costs directly related to bremelanotide increased by $2.7

million, primarily reflecting increased costs associated with clinical trials and with

manufacturing contractors for process development activities. Costs of preclinical

research and development programs also increased, partially offsetting reduced development

expenses for NeutroSpec and lower general and administrative costs.

Palatin s cash, cash equivalents

and investments totaled $20.5 million as of September 30, 2006, compared to $30.7 million

Webcast Access Information

Palatin Technologies management

will discuss the first quarter financial results and provide an update on corporate

developments during a conference call and webcast on November 10, 2006 at 10:00 a.m. EST.

Palatin Technologies, Inc. is a

biopharmaceutical company primarily focused on discovering and developing targeted,

receptor-specific small-molecule and peptide therapeutics. The Company s drug

development pipeline includes primarily melanocortin-based therapeutics. 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 statements about the Company s development programs,

proposed indications for its product candidates, pre-clinical activities 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. The

Company 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 recommence

marketing and gain commercial acceptance of NeutroSpec , 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 on this press release.

PALATIN TECHNOLOGIES,

Statements of Operations

PALATIN TECHNOLOGIES,

Consolidated Balance