Press Release dated

FOR RELEASE DECEMBER 30,

Palatin Technologies

Receives Notification Letter from NYSE Alternext US

Common Stock to Remain Listed While it

Engages in Compliance

Cranbury, NJ December 30, 2008

Palatin Technologies, Inc. (NYSE Alternext US: PTN) today reported it received

notice from NYSE Alternext US LLC (the Exchange , formerly known as the

American Stock Exchange), advising Palatin that it is not in compliance with certain

conditions of the Exchange s continued listing standards under Section 1003 of the

Exchange s Company Guide.

In a letter to Palatin, the Exchange

stated that Palatin was not in compliance with Section 1003(a)(ii) of the Company Guide

because Palatin s stockholders equity is less than the required $4,000,000 and

it has losses from continuing operations and net losses in three of its four most recent

fiscal years and not in compliance with Section 1003(a)(iii) of the Company Guide because

Palatin s stockholders equity is less than the required $6,000,000 and it has

losses from continuing operations and net losses in its five most recent fiscal years. The

letter from the Exchange also stated that because the Company s stock has been

trading below $0.25 per share over the last seven months, the Exchange deems it

appropriate for Palatin to effect a reverse stock split in accordance with

Section 1003(f)(v) of the Exchange s Company Guide.

Palatin intends to submit a plan of

compliance by January 23, 2009, advising the Exchange how it intends to regain compliance

with Sections 1003(a)(ii), 1003(a)(iii) and 1003(f)(v) by July 23, 2010. If the

Exchange accepts the plan, Palatin may be able to continue its listing during the plan

period through July 23, 2010, subject to periodic review by the Exchange to determine if

it is making progress consistent with the plan. If Palatin does not submit a plan, or if

the Exchange does not accept the plan, or if Palatin does not regain compliance with

Sections 1003(a)(ii) and (iii) by July 23, 2010, or if Palatin does not make progress

consistent with the plan during the plan period, the Exchange may initiate delisting

Palatin Technologies, Inc. is a

biopharmaceutical company focused on discovering and developing targeted,

receptor-specific small molecule and peptide therapeutics. Palatin s strategy is to

develop products and then form marketing collaborations with industry leaders in order to

maximize their commercial potential. For additional information regarding Palatin, please

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

Statements about future expectations

of Palatin Technologies, Inc., 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. Palatin 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 Palatin 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 protect its intellectual

property, and other factors discussed in the Palatin s periodic filings with the

Securities and Exchange Commission. Palatin is not responsible for updating for events

that occur after the date of this press release.