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MDS Reports Second Quarter 2009 Financial Results
Date:6/11/2009

ical Technologies reported $13 million in adjusted EBITDA, compared with $17 million in the corresponding quarter last year. Excluding $5 million of unfavorable impact from foreign exchange, primarily as a result of hedge positions established in 2008, adjusted EBITDA increased $1 million or 4%, driven by restructuring and productivity savings, which were largely offset by pricing and lower volumes. For the quarter, MDS Analytical Technologies reported $87 million in revenue, down 26% from $118 million in the prior year. The effect of foreign exchange reduced reported revenue by $11 million, or 9% year-over-year. Including the impact of foreign exchange, total end-user revenue decreased 13%, with an 11% decline in mass spectrometry end-user revenue. Soft end-user demand in pharmaceutical markets for instruments was the primary driver for the year-over-year decline in volumes across all product lines. The Company continues to see growth in applied markets, services and new products - particularly the recently launched 5500 series of mass spectrometers, which are being well received by customers.

In the second quarter, MDS Analytical Technologies continued to introduce innovative technologies and products. The Company and its joint venture partner, Applied Biosystems (a division of Life Technologies Corporation) launched the AB SCIEX TOF/TOF(TM) 5800 system - the fastest, most sensitive MALDI-based mass spectrometer ever built. This system is already commercially available and will help researchers advance the discovery of biomarkers. MDS Analytical Technologies and Applied Biosystems also introduced a new suite of iMethod tests that simplify the use of mass spectrometry for food and water quality testing, forensic toxicology and clinical research, and MetaXpressPowerCore(TM) and MetaXpress(R) 3.0 image acquisition and analysis software, which are designed to accelerate the throughput of high content screening and expand toxicity applications.

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