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MDS Reports Third Quarter 2007 Results
Date:9/6/2007

ny agreements reached with clients for study audits, study re-runs, and other related costs. As our experience to date has been that sponsors bill us for costs once their audits are finalized, we expect the utilization of this reserve to increase significantly in the fourth quarter and continue into 2008.

Full and complete resolution of the bioanalytical regulatory issues remains a key focus for MDS Pharma Services and MDS. We remain committed to working cooperatively with the FDA, other regulators, and our customers to address any regulatory concerns and to support our customers while they complete the study audits. Although we recorded a provision in our second quarter that reflects our current best estimate of the costs we expect to incur with respect to this work and for obligations we have to clients, there can be no assurance at this time that we will not incur costs that exceed the amounts we have currently estimated. In addition, although the FDA has approved certain submissions, there can be no certainty that, in all cases, the study audits conducted by our clients will be acceptable to the FDA or other regulators, or that such regulators will not require additional work. We also are unable to judge what further impact this situation will have on our business development activities, particularly for our bioanalytical and Phase I operations.

MDS Nordion

Financial Highlights

Third Quarter Year-to-Date

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% Change % Change

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2007 2006 Reported Organic 2007 2006 Reported

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$ 76 $ 79 (4%) (4%) Net revenues $ 213 $ 221 (4%)

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SOURCE MDS Inc.
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