Paladin Holdings, Inc. Releases Southland Update Regarding Ambulance Operations

Paladin Holdings, Inc. (OTCBB: PLHI) releases Southland update: On January 24, 2008, Southland was required to suspend all ambulance operations due to the lapse of its professional and liability insurance. Southland operates under the trade name "Emergystat." Southland has successfully reinstated its professional and liability insurance policies as of February 1, 2008 effective January 24, 2008. Southland will immediately request reinstatement of its licenses in Alabama, Florida, Georgia, Virginia and Tennessee. The Company expects to be assisted by the state board as there is significant need for the Company's Services. The Company believes it will commence operations in Alabama and Virginia almost immediately, quickly followed by Florida, Georgia, and Tennessee. Southland continues its efforts to obtain emergency payment from Medicare due to the delays caused by the Medicare payment system processing failures.

Several activities contributed to the cancellation of the Professional and Liability insurance. The successful efforts by General Electric Credit Corporation (GE) to block payments of mandatory services provided to Sulligent, a subsidiary of Southland, which included: dispatch, billing, and other required services reduced cash flow by an estimated $300,000. Instead of being available on an earned basis, this approximate $300,000 sits idle in Sulligent Cash Account. Additionally, Southland was notified on the liability insurance cancellation date, by the processor of Medicare payments for transports occurring in the State of Mississippi, that their system flaws caused weekly payments to be suspended and as a consequence Southland had not received payment since January 4, 2008. The processor had been contacted several times during the month but only on January 23, 2008 did it notify Southland of its system error. During this interim period, January 4 thru January 23, the processor reported to the Company that checks in excess of $300,000 had been written and forwarded, the information included: check number, check date, and check amount. Medicare owes Southland in excess of $1.3 million for transports occurring in the state of Mississippi. If these checks would have been received during the normal course, that amount would have been more than sufficient to have paid the liability insurance. Today, Southland is continuing to assist in the affected 911 areas by continuing to loan equipment and cooperating with all parties involved to see that the communities and families have the services they need.

About Paladin Holdings, Inc.

Paladin Holdings, Inc. (OTCBB: PLHI) participates in two distinct business segments:

Bad Toys, Inc.

This division, Bad Toys, Inc., American Eagle Manufacturing Company and Gambler Motorcycle Company, continues to design, manufacture, distribute, service and sell custom made, Harley-Davidson type, V-twin motorcycles from component parts. We also offer premium accessories, parts, customizing items and apparel related to Harley-Davidson motorcycles on-line and directly from our retail and factory outlets. This division also participates in Sprint Car Racing products and custom car construction and restoration.

Southland Health Services, Inc.

The second business segment, in which the company is a major shareholder (25%) of Southland Health Services, Inc., provides an array of Health Care services including ambulatory emergency and non-emergency patient transport, wheel-chair van, stretcher van and related transport services. Southland operates in over 200 communities within the following seven states: Mississippi, Alabama, Florida, Kansas, Tennessee, Virginia, and Georgia. We operate in excess of 207 ambulances and wheelchair vans and have over 940 full and part-time employees. On January 24, 2008, the Company suspended operations due to a lapse in insurance coverage. The Company was re-insured on February 1, 2008 and is in the process of reactivating ambulance services in a limited number of communities.

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties outlined in its filings with the Securities and Exchange Commission, its press releases and other communications. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.