MDS To Record Restructuring Charge



    TORONTO, July 18 /CNW/ - MDS Inc. (TSX: MDS, NYSE:   MDZ), a leading
provider of products and services to the global life sciences markets, today
announced a restructuring plan to drive improved profitability at MDS Pharma
Services and MDS Analytical Technologies. These restructuring actions are
expected to yield annual pre-tax savings of approximately $20 million and
result in a net reduction of approximately 210 employees. Cumulative pre-tax
restructuring charges associated with these actions are anticipated to be
approximately $18 million with the majority of the charges recorded in
Q3 fiscal 2008. The Company also expects to record a pre-tax facility-related
asset impairment charge of approximately $10 million related to its MDS Pharma
Services Montreal site. The expected after-tax amount of restructuring and
asset impairment charges will reduce net income and basic earnings per share
for fiscal 2008 by approximately $20 million and $0.16, respectively.
    MDS is scheduled to release its third quarter fiscal 2008 earnings on
September 4, 2008, followed by a conference call and webcast, at which time
the Company will provide additional comments and address the impact of these
charges on its fiscal 2008 guidance.

    Caution Concerning Forward-Looking Statements

    This document contains forward-looking statements. Some forward-looking
statements may be identified by words like "expects", "anticipates", "plans",
"intends", "indicates" or similar expressions. The statements are not a
guarantee of future performance and are inherently subject to risks and
uncertainties. The Company's actual results could differ materially from those
currently anticipated due to a number of factors, including, but not limited
to, successful integration of structural changes, including restructuring
plans, acquisitions, technical or manufacturing or distribution issues, the
competitive environment for the Company's products and services, the degree of
market penetration of the Company's products and services, and other factors
set forth in reports and other documents filed by the Company with Canadian
and U.S. securities regulatory authorities from time to time.

    About MDS

    MDS Inc. (TSX: MDS; NYSE:   MDZ) is a global life sciences company that
provides market-leading products and services for the development of drugs and
diagnosis and treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular imaging,
radiotherapeutics, and analytical instruments. MDS Inc. has more than
5,500 highly skilled people in 29 countries. Find out more at www.mdsinc.com
or by calling 1-888-MDS-7222, 24 hours a day.




For further information:

For further information: Investors: Kim Lee, MDS Inc., (416) 675-6777 x
34721, kim.lee@mdsinc.com; Media: Janet Ko, MDS Inc., (416) 213-4167,
janet.ko@mdsinc.com

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