Isotope Products Laboratories, DraxImage ink distribution deal

Valencia, California, USA, March 22, 2004 - Isotope Products Laboratories (IPL), a subsidiary of Eckert & Ziegler AG has concluded a distribution agreement with DRAXIMAGE Inc., the radiopharmaceutical subsidiary of DRAXIS Health Inc. (TSX: DAX, Nasdaq: DRAX).. DRAXIMAGE will market the full line of IPL medical imaging products in Canada, including calibration & reference sources for imaging applications, such as PET (Positron Emission Tomography), SPECT (Single Photon Emission Computed Tomography), and multi-modality applications. DRAXIMAGE will also introduce the Perflexion™, IPL's new flexible Cobalt-57 flood source to the Canadian market in the second quarter of 2004.

Known for its broad portfolio of products, IPL has become the world's largest supplier of Nuclear Medicine calibration standards. Recently, product innovations such as the Perflexion™ flood source and IPL's industry leading "second day" shipment have radically simplified the ordering and use of radioactive standards for this industry segment. According to Joe Hathcock, IPL's COO "By joining Draximage's powerful direct sales network in Canada with IPL's products and support we hope to have created an unbeatable combination. We are very optimistic that this partnership will increase business for both companies by providing a unique benefit to Draximage customers." IPL sells its products via various avenues, including direct to users, international distributors in over 30 countries and in partnerships with original equipment manufacturers.

About Isotope Products Laboratories: IPL was founded in 1967 and operated as a privately held company for 32 years, specializing in radiation source production and custom source design. The company was acquired in 1999 by Eckert & Ziegler AG, of Berlin, Germany; a corporation that offers engineered products using radioactive isotopes in the Oncology, Nuclear medicine, Research and Industrial markets.

About DRAXIMAGE Inc.: DRAXIMAGE discovers, develops, manufactures and markets diagnostic imaging and therapeutic radiopharmaceuticals for the global marketplace. Products currently marketed by DRAXIMAGE include a line of lyophilized technetium-99m kits used in nuclear imaging procedures, a line of imaging and therapeutic products labeled with a variety of isotopes including radioiodine, and BrachySeed(TM), a next-generation brachytherapy implant for treating prostate cancer. DRAXIMAGE has several products in late-stage development, including three technetium-99m-based diagnostic imaging products: Fibrimage® for imaging deep vein thrombosis currently in Phase III, Amiscan(TM) for the early diagnosis of acute myocardial infarct currently in Phase II, and INFECTON(TM) for imaging infection, currently in Phase II. About DRAXIS Health Inc.: DRAXIS Health Inc. (www.draxis.com) is a specialty pharmaceutical company involved in the development, production, marketing and distribution of therapeutic and diagnostic radiopharmaceuticals through DRAXIMAGE Inc. and in the provision of pharmaceutical contract manufacturing services, specializing in liquid and freeze-dried injectables and other sterile products through DRAXIS Pharma Inc. DRAXIS Health employs nearly 400 staff and reported revenues in 2003 in excess of US$49 million.

The Board of Directors