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MDS Reports First Quarter 2008 Results
Date:3/6/2008

rty audit costs or study re-run costs to complete the work required by the FDA and other regulators. We have utilized $13 million of this reserve for such costs, an amount that was partially offset by a foreign currency translation gain on the US-dollar denominated components of the cost estimate. Although we believe we have substantially completed the majority of all required site audits, we still await final reimbursement requests for many of these audits. Based on information currently available, we believe that the remaining reserve of $52 million will be sufficient to cover any agreements reached with clients for study audits, study re-runs, and other related costs.

MDS Nordion

Financial highlights

First Quarter

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% of net % of net

2008 revenues 2007 revenues

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Product revenues $ 59 98% $ 67 100%

Service revenues 1 2% - -

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Net revenues 60 100% 67 100%

Cost of product revenues (34) (57%) (34) (51%)

Cost of service revenues - - (1) (2%)

Selling, general, and

administration (11) (18%) (11) (16%)

Research and development - - (1) (2%)

Depreciation and amortization (3) (5%) (3) (4%)

Other expense (8) (13%) - -

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SOURCE MDS Inc.
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