Palatin Technologies, Inc. press release dated

FOR RELEASE SEPTEMBER

10, 2007 at 7:30 a.m. ET

TECHNOLOGIES ANNOUNCES REACQUISITION OF FULL RIGHTS TO BREMELANOTIDE PROGRAM

CRANBURY, N.J. September 10,

2007 Palatin Technologies, Inc. (AMEX: PTN) today announced it has reacquired full

rights to bremelanotide, a first in class melanocortin agonist drug candidate for the

treatment of male erectile dysfunction (ED) and female sexual dysfunction (FSD) from King

Pharmaceuticals Inc. (NYSE: KG).

The companies mutually agreed to end

their collaborative development and marketing agreement on bremelanotide, with King

exercising its right to terminate. Under the termination, Palatin has all rights to

bremelanotide, without any obligation for future payments to King. King has no financial

obligation for future payments to Palatin, other than for previously incurred costs not

yet reimbursed and approved expense reimbursements related to the wind-down of the

collaboration. The decision follows recent responses from representatives of the U.S. Food

and Drug Administration (FDA), which raised serious concerns about the acceptable

benefit/risk ratio to support the progression of bremelanotide into Phase 3 studies for ED

as a first-line therapy in the general population.

The termination of the collaborative

development and marketing agreement is effective December 6, 2007. King retains the

previously issued Palatin unregistered common stock and warrants.

Palatin is in the process of

reviewing the responses and comments made by the FDA and plans to engage the FDA in

further discussions in order to determine next steps related to the further development of

bremelanotide for the treatment of ED.

Regarding the FSD program with

bremelanotide, we have completed an exploratory at-home Phase 2 clinical trial in pre- and

postmenopausal women and are in the final stages of compiling the data. We anticipate

releasing the results later this month, stated Carl Spana, Ph.D., President and

Chief Executive Officer of Palatin.

Palatin will also continue to focus

its efforts on the Company s pipeline of preclinical therapeutics, including its

compounds for obesity partnered with AstraZeneca and a lead clinical candidate for the

treatment of congestive heart failure.

Webcast Access Information

Palatin Technologies management

will discuss the status of the bremelanotide program during a conference call and webcast

today at 9:00 a.m. ET.

The webcast and replay can be

accessed by logging on to the Investor Center-Webcasts section of

Palatin s website at www.palatin.com.

as the consistent inability to attain and maintain an erection sufficient for sexual

intercourse. The condition is correlated with increasing age, cardiovascular disease,

hypertension, diabetes, hyperlipidemia, and smoking. In addition, certain prescription

drugs and psychogenic issues may contribute to ED. It is estimated that some degree of ED

affects one half of all men over the age of 40 and that 150 million men worldwide suffer

disorder is defined by the American Foundation for Urologic Disease as: The

persistent or recurrent inability to attain or maintain sufficient sexual excitement,

causing personal distress. It may be expressed as a lack of subjective excitement or a

lack of genital or other somatic responses. FSD consists of four components,

hypoactive sexual desire disorder, female sexual arousal disorder (FSAD), dyspareunia or

painful intercourse and anorgasmia. To establish a diagnosis of FSD, these components

must be associated with personal distress, as determined by the affected woman. A

February 10, 1999 study published in the Journal of the American Medical Association,

JAMA, titled, Sexual Dysfunction in the United States: Prevalence and Predictors, states

that some form of FSD appears to be prevalent in approximately 43 percent of the female

About Palatin Technologies,

Inc.Palatin Technologies, Inc. is a biopharmaceutical company focused on

discovering and developing targeted, receptor-specific small molecule and peptide

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. The Company currently has

AstraZeneca and Tyco Healthcare

Mallinckrodt. For additional information regarding Palatin, please visit Palatin

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