Palatin Technologies, Inc. press release dated

2007 at 4:00 p.m. EDT

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

and Webcast May 10, 2007 at 10:00 a.m. EDT

CRANBURY, NJ May 9, 2007

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

third quarter ended March 31, 2007. Total revenues in the quarter were $3.1 million,

compared to $5.0 million for the same period in 2006. Palatin reported a net loss of $6.7

million, or $(0.09) per share, for the quarter ended March 31, 2007, compared to a net

loss of $7.6 million, or $(0.13) per share, for the same period in 2006. Research and

development expenses related to the Company s bremelanotide development program and

reimbursement revenue from its strategic collaboration partner, King Pharmaceuticals, Inc.

(King), for its share of those expenses, decreased in the current quarter compared to the

LICENSES, GRANTS AND

In the quarter ended March 31, 2007,

the Company recognized revenue from licenses, grants and contracts of $3.1 million,

including $2.5 million of cost reimbursements and deferred revenues from King pursuant to

the companies collaboration agreement for bremelanotide. Bremelanotide is the

Company s drug under development for the treatment of erectile dysfunction (ED) and

female sexual dysfunction (FSD).

The Company also recognized $0.5

million of research funding and license revenue from AstraZeneca AB related to the

companies January 2007 licensing and research collaboration agreement for the

discovery, development and commercialization of small molecule compounds that target

melanocortin (MC) receptors for treatment of obesity, diabetes and related metabolic

syndrome. As of March 31, 2007, the Company has deferred the recognition of $9.7 million

of the $10.0 million up-front license fees received from AstraZeneca and will recognize

those amounts over the term of the agreement.

In the quarter ended March 31, 2006,

revenue from licenses, grants and contracts was $5.0 million, primarily reflecting higher

reimbursable bremelanotide costs incurred by Palatin in the period.

Total operating expenses for the

quarter ended March 31, 2007 were $10.2 million, compared to $12.8 million for the same

period in 2006, as research and development expenses in the period decreased to $8.1

million in the current quarter from $11.0 million in the comparable period of the prior

year. Lower expenses related to the Company s bremelanotide development program were

partially offset by increased spending on its other development programs. The Company

completed two Phase 2 clinical studies of bremelanotide in ED patients earlier in the

fiscal year and, with King, is currently preparing for an end-of-Phase 2 meeting with the

Palatin s cash, cash equivalents

and investments totaled $42.9 million as of March 31, 2007, compared to $30.7 million at

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

AstraZeneca, the Company received an up-front payment of $10.0 million. In addition, in

February 2007, the Company received net proceeds of $25.5 million from the sale of 13.75

million shares of common stock in an underwritten offering.

Palatin Technologies management

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

developments during a conference call and webcast tomorrow, on May 10, 2007 at 10:00 a.m.

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 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

entered into collaborations with AstraZeneca, King Pharmaceuticals 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