MDS Reports Third Quarter 2007 Results(p ------------------------------------...),Health

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$ (7) $ (9) Selling, general, and administration $ (19) $ (25)

(2) (1) Restructuring charges (9) (3)

(1) - Other income (expense) (5) (3)

- - Equity earnings - (3)

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(10) (10) EBITDA (33) (34)

Adjustments:

- - Gain on sale of investments (2) -

1 - Mark-to-market adjustments 1 2

- - Valuation provisions 6 7

2 1 Restructuring charges 9 3

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$ (7) $ (9) Adjusted EBITDA $ (19) $ (22)

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Corporate SG&A expenses were $7 million for quarter this year, compared to $9 million in the third quarter of 2006. Expenses for the prior year included $4 million related to the FDA matter and our initial SOx certification initiative.

Other expenses for the quarter include a $1 million mark-to-market loss on certain debt derivatives and $2 million of restructuring, both of which were treated as adjustments to arrive at adjusted EBITDA.

Third quarter interest expense increased from $4 million in 2006 to $6 million in 2007 and interest income in the quarter was $4 million in both years.

Income Taxes

Our effective income tax rate for the quarter was 27% and below our expected rate of 36% due primarily to the improved performance of certain of our
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