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

ignificant progress in helping our bioanalytical clients complete generic study audits required by the FDA. We believe substantially all of the site audit work for generic submissions has now been completed. Most of our efforts at this time are focused on follow-up questions and supporting the finalization of our customers' remaining audit reports. We also continue to work with clients to support any required review of bioanalytical innovator studies from Montreal.

MDS Pharma Services continues to make progress implementing previously announced restructuring plans. During the third quarter, we completed the consolidation of our European bioanalytical operations from Sittingbourne, UK to Zurich, Switzerland. We have reduced our workforce while growing our revenues by 5% year to date. We have Lean Sigma initiatives and other activities underway to optimize our global network, enhance our productivity, and improve our ability to serve our customers.

MDS Pharma Services has recently hired industry experts in Phase II - IV, Information Technology, and Strategy and Corporate Development to enhance leadership in strategic growth areas. We also hired industry experts to support the expansion of our Development and Regulatory Services (DRS) business in Europe. MDS Pharma Services is now able to offer full-service DRS consulting services to support the development of new drugs and biopharmaceutical products for clients in Europe. MDS Pharma Services also continues to make strategic investments to support our global growth strategy. These investments include a 300-bed expansion in Phoenix, Arizona for our Phase I business and several new information systems to enable our pre-clinical and central lab businesses to serve our customers more effectively.

MDS Nordion

% Change

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($ millions) Q3 2007 Q3 2
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SOURCE MDS Inc.
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