MDS ends strategic repositioning with divestiture of MDS Pharma Services Early Stage business

Company to Focus on MDS Nordion

MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global health sciences markets, today announced that it has completed the divestiture of its MDS Pharma Services Early Stage business.

"The completion of this transaction marks the end of the Company's strategic repositioning and enables us to move forward with a focus on MDS Nordion," said Steve West, Chief Executive Officer of MDS Inc. "We are committed to serving our customers by further building our leadership positions in medical imaging and radiotherapeutics, and sterilization technologies."

MDS is providing transition services to the buyers of the businesses it has sold and has initiated the relocation of its corporate headquarters to Ottawa. These activities are expected to be substantially complete by the end of 2010. In addition, the divestiture of the MDS Pharma Services Early Stage business does not include the facility in Montreal, Canada, which is expected to be closed by the end of February 2011.

MDS Strategic Repositioning

Background materials pertaining to the new strategic direction for MDS Inc. can be found on MDS Inc.'s Website at http://www.mdsinc.com/strategic_repositioning_of_mds/index.asp.