Toronto, ONTARIO / Montreal, QUEBEC--March 16, 2000--Paladin Labs Inc. (TSE:PLB) and MDS Laboratory Services, part of the Diagnostic Sector of MDS Inc. (TSE:MDS) announced that, effective today, the NMP22(R) tumour marker test for bladder cancer is now available at MDS lab locations in Ontario, Quebec and Alberta.

NMP22(R) was developed by Matritech Inc. in Newton, MA, USA (NASDAQ:NMPS). The test measures the level of a specific nuclear matrix protein (NMP) associated with bladder cancer to accurately predict the risk of a recurrence of the disease. Recent clinical studies have shown NMP22(R) to be twice as sensitive as conventional cytology in predicting low-grade bladder cancer tumours. Because NMP22(R) analyzes patient urine samples and does not require any medical procedures, it is painless to patients. NMP22(R) recently received FDA approval for use in screening patients suspected of having bladder cancer.

"In keeping with our goal of helping doctors and their patients better understand the value of diagnostic testing in monitoring, diagnosing and preventing disease, we are pleased to be able to offer NMP22(R) under our COL-LAB-ORATE(tm) banner. Bladder cancer is currently the fourth most common form of cancer among North American men and, for this reason, we see NMP22(R) as being an important addition to the line of diagnostic tests that we currently offer." said Dr. Brian Sheridan, Medical Director of MDS Laboratory Services.

Jonathan Goodman, President & CEO of Paladin said, "We believe that NMP22(R) significantly expands the range of diagnostic tools that urologists currently have at their disposal for diagnosing the recurrence of bladder cancer. Securing access to the extensive network of MDS labs is a significant step towards our goal of making NMP22(R) easily accessible to patients and urologists across Canada".

Information about the bladder cancer marker NMP22(R) test is available on the new MDS COL-LAB-ORATE web site, at www.mdscollaborate.com. Users of the web site will be able to access patient brochures, clinical applications for tests, physician newsletters, and key links to relevant medical associations and consumer healthcare groups.

About MDS Inc. (TSE: MDS):

MDS Laboratory Services is part of the Diagnostic Sector of MDS Inc. an international health and life sciences company with more than 8,500 employees worldwide. MDS Laboratory Services is the largest provider of diagnostic laboratory services in Canada and a fast growing player in the USA. MDS provides comprehensive diagnostic laboratory testing information and services for community-based clinicians and patients, healthcare facilities and corporations. Information about the company is available at the MDS Web site at www.mdsintl.com.

About Paladin Labs Inc. (TSE:PLB):

Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to info@paladin-labs.com.

Paladin Labs Inc. is a public company whose shares trade on the Toronto Stock Exchange under the symbol PLB.

NMP22(R) is a registered trademark of Matritech Inc., Newton, MA USA. Paladin Labs is the exclusive Canadian distributor for the NMP22(R) test.

For Information about Paladin Labs Inc.:
Lennie Ryer, C.A.,
CFE Chief Financial Officer
Paladin Labs Inc.
Tel: 514-340-5067
e-mail:lryer@paladin-labs.com

Jason Hogan Investor Relations
The Equicom Group Inc.
Tel: 416-815-0700 ext. 222 e-mail: jhogan@equicomgroup.com

For Information about MDS Inc. or COL-LAB-ORATE:
Patricia Everitt
Director, External Communications
MDS Diagnostic Sector
Tel: 416-213-4258
e-mail: peveritt@mdsintl.com

PALADIN LABS INC. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval.