Palatin Technologies, Inc. press release dated

For Release February 9,

2007 at 7:30 a.m. EST

Technologies, Inc. Reports Fiscal Year 2007 Second Quarter Results;

and Webcast February 13, 2007 at 10:00 a.m. EST

CRANBURY, NJ February 9, 2007

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

second quarter ended December 31, 2006. Total revenues in the quarter were $3.7 million,

compared to $4.6 million for the same period in 2005. Palatin reported a net loss of $6.5

million, or ($0.09) per share, for the quarter ended December 31, 2006, compared to a net

loss of $7.4 million, or ($0.13) per share, for the same period in 2005.

Research and development expenses in

the period increased approximately $0.2 million from the comparable period of the prior

year, as increased expenses related to bremelanotide and Palatin s (the

Company s) other development programs offset lower development spending on

NeutroSpec . The decrease in the net loss reported for the second quarter ended

December 31, 2006 compared to the same period in 2005 is primarily due to the effect of

inventory write-offs of $2.0 million in 2005 associated with the December 2005 withdrawal

LICENSES, GRANTS AND

In the quarter ended December 31,

2006, the Company recognized revenue from licenses, grants and contracts of $3.7 million,

primarily related to the reimbursement by King Pharmaceuticals, Inc. (King) of

bremelanotide costs pursuant to the companies collaboration agreement. Bremelanotide

is the Company s drug under development for the treatment of erectile dysfunction

(ED) and female sexual dysfunction (FSD). In the quarter ended December 31, 2005, revenue

from licenses, grants and contracts was $4.0 million, reflecting slightly higher

reimbursable bremelanotide costs incurred by Palatin in the period.

In the current period, the Company

recorded no royalty revenue related to commercial sales by Tyco Healthcare Mallinckrodt

(Mallinckrodt) of NeutroSpec, compared to $0.6 million in the quarter ended December 31,

2005. In December 2005, the Company and Mallinckrodt suspended all NeutroSpec sales and

marketing activities.

Total operating expenses for the

quarter ended December 31, 2006 were $11.2 million, compared to $12.9 million for the same

period in 2005. Development costs directly related to bremelanotide increased by $0.2

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

manufacturing contractors for process development activities. The Company recently

completed two Phase 2 clinical studies of bremelanotide in ED patients and is currently

conducting additional studies with its strategic development partner, King, and preparing

for an end-of-Phase 2 meeting with the FDA.

Costs of preclinical research and

development programs also increased, offsetting reduced development expenses for

NeutroSpec. In January 2007, the Company announced an exclusive global licensing and

research collaboration agreement with AstraZeneca AB (AstraZeneca) to discover, develop

and commercialize small molecule compounds that target melanocortin (MC) receptors.

Palatin s cash, cash equivalents

and investments totaled $16.0 million as of December 31, 2006, compared to $30.7 million

at June 30, 2006. Under the January 2007 licensing and research collaboration agreement

with AstraZeneca, the Company is due to receive an up-front payment of $10.0 million in

the Company s third fiscal quarter ending March 31, 2007.

Palatin Technologies management

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

developments during a conference call and webcast on February 13, 2007 at 10:00 a.m. EST.

Webcast Access Information

Palatin Technologies, Inc. is a

biopharmaceutical company focused on discovering and developing targeted,

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

candidate, bremelanotide, is currently in Phase 2 clinical trials for both male and female

sexual dysfunction. The Company s internal research and development capabilities,

anchored by its proprietary MIDAS technology, are fuelling 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

entered into collaborations with AstraZeneca, King and Mallinckrodt. 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, 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 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 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 of this press release.

PALATIN TECHNOLOGIES,

Consolidated Statements of Operations

PALATIN TECHNOLOGIES,

Consolidated Balance Sheets