MDS to accept for purchase and cancellation 52.9M common shares at $8.50 per share

MDS Inc. (TSX: MDS; NYSE: MDZ), a leading provider of products and services to the global health science markets, today announced results of its substantial issuer bid (the "Bid"), which expired at 5 p.m. (Eastern time) on March 29, 2010.

Based on preliminary results, MDS Inc. ("MDS") will accept for purchase and cancellation 52,941,176 common shares in the capital of MDS (the "Common Shares") at a purchase price of US$8.50 per Common Share, totalling US$450 million in accordance with the terms of the Bid. These Common Shares represent 44.1% of the Common Shares currently issued and outstanding. After the repurchase, the number of Common Shares issued and outstanding will be approximately 67.2 million.

Approximately 53.1 million Common Shares were tendered to the Bid at prices at or below the purchase price of US$8.50 per Common Share. Based on preliminary results and in accordance with the terms of the Bid, after the purchase of odd lots, the Common Shares will be taken up on a pro rata basis such that shareholders who deposited Common Shares at or below the purchase price of US$8.50 per Common Share, will have approximately 99.7% of the Common Shares they tendered purchased for cancellation.

Common Shares tendered to the Bid but not purchased will be returned to shareholders as soon as practicable.

Assuming the final results of the Bid do not differ from the preliminary results described above, MDS does not intend to issue a subsequent press release on the results of the Bid.

RBC Capital Markets acted as dealer manager and financial advisor in connection with the Bid.

Tax Information

For Canadian tax purposes a deemed dividend will arise on this Bid. For the enhanced dividend tax credit under subsection 89(14) of the Income Tax Act (Canada) and for any corresponding provincial legislation, MDS designates the entire deemed dividend arising on each Common Share buyback as an "eligible dividend". The exact amount of the deemed dividend will be disclosed on MDS's web-site at www.mdsinc.com or www.mdsnordion.com upon take-up and payment for the Common Shares.

In addition, the specified amount in respect of each Common Share purchased under this Bid for purposes of subsection 191(4) of the Income Tax Act (Canada) will be disclosed on MDS's web-site at www.mdsinc.com or www.mdsnordion.com upon take-up and payment for the Common Shares.