STALLERGENES and Paladin Labs sign a partnership for OralairTM in Canada

Antony, France; Montreal, Canada (Jan. 9, 2007) Stallergenes SA and Paladin Labs Inc. (TSX: PLB) announced today that they have entered into a Canadian development, promotion and distribution agreement for Oralair^TM, Stallergenes allergen extract immunotherapy sublingual tablets. Stallergenes and Paladin plan to submit the first product under this agreement, Oralair^TM Grasses, for Canadian regulatory approval in 2007.

Under the terms of this agreement, Paladin will assume responsibility for Canadian clinical trials, registration, marketing, sales and distribution of Stallergenes sublingual tablets, which include Oralair^TM Grasses, Oralair^TM recombinant Bet V 1 (birch) and Oralair^TM Mites. This partnership offers Paladin the opportunity to lead the way in bringing sublingual immunotherapy, the gold standard treatment of seasonal allergies in Europe, to the Canadian market. Sublingual therapy represents a significant safety and quality of life improvement for Canadian patients compared to existing subcutaneous therapies.

We are very pleased to team up with Paladin Labs, a company which has a demonstrated track record in developing, branding and detailing pharmaceutical specialties and with which we share a common culture of trust and performance, said Albert Saporta, Chairman and CEO of Stallergenes. This partnership is a significant milestone in Stallergenes activities outside Europe.

We are thrilled to partner with the leader in sublingual allergen desensitization and to bring their exciting and novel product portfolio to Canada. This agreement will build on the success of Twinject^® in establishing Paladin as the Canadian leader in the delivery of innovative, life-saving and patient-friendly treatment options for Canadian allergy sufferers. We are pleased that Stallergenes recognizes Paladin as being a valuable company in the advancement of this new opportunity for Canada, said Jonathan Ross Goodman, President and CEO of Paladin Labs.

These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Companys Annual Information Form for the year ended December 31, 2005. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Companys ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com