MDS Reports Final Fourth-Quarter 2008 Results

    TORONTO, Jan. 8 /CNW/ - MDS Inc. (TSX: MDS; NYSE:   MDZ), a leading
provider of products and services to the global life sciences markets, today
reported its final fourth-quarter results following the completion of its
year-end audit for the period ended October 31, 2008.
    As previously announced, for the fourth quarter 2008, MDS reported total
revenue of $322 million. The final value of the MDS Pharma Services goodwill
write-down, previously estimated to be in the range of $270 million to $370
million, is $320 million. Including the goodwill write-down for MDS Pharma
Services and the previously disclosed $246 million after-tax charge to write
off the MAPLE asset, the Company reported a net loss of $575 million and a
loss per share from continuing operations of $4.77. Net revenue was $295
million and adjusted EBITDA, previously estimated to be $37 million, was $36
million, compared with $307 million and $35 million in the prior year,
respectively. Adjusted earnings per share was $0.02, down from $0.10 in the
prior year.
    "In 2008, MDS confronted challenges in a difficult environment. While we
made progress in several areas, we recognize the necessity of improved
performance," said Stephen P. DeFalco, President and Chief Executive Officer,
MDS Inc. "We are operating with a sense of urgency, and have an engaged Board
and Management team focused on driving growth, improving performance and
shaping the Company's business portfolio. We continue to review our strategy
against potential options, with a firm commitment to delivering shareholder

    New Disclosure and Delivery Method for Reporting Financial Results

    MDS has adopted a new approach to releasing quarterly financial results.
The Company no longer uses the newswires to issue quarterly Management
Discussion and Analysis (MD&A), and financial statements and notes. For the
Company's first, second and third quarters, MD&A and financial statements and
notes will be posted to the Company's Website at, and filed with
the relevant Canadian and U.S. securities regulators. Commencing with
fourth-quarter results announced on December 17, 2008, a press release was
issued with expanded disclosure. However, fourth-quarter results will no
longer be accompanied by an MD&A and financial statements and notes. A
comprehensive MD&A with financial statements and notes will be provided on a
year-end basis with the Company's Annual Report, Annual Information Form and
Proxy Circular Filings. These documents are expected to be filed later in
January 2009 with the relevant securities regulators, and will also be posted

    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. MDS's actual results could differ materially from those
expressed in the forward-looking statements due to these risks and a number of
other factors, including, but not limited to, successful implementation of
structural changes, including restructuring plans and acquisitions, technical
or manufacturing or distribution issues, the competitive environment for MDS's
products and services , the degree of market penetration of its products and
services, the ability to secure a reliable supply of raw materials, the impact
of our clients' exercising rights to delay or cancel certain contracts, the
strength of the global economy, the stability of global equity markets, the
availability and cost of financing, the impact of the movement of the U.S.
dollar relative to other currencies, particularly the Canadian dollar and the
euro, uncertainties associated with critical accounting assumptions and
estimates, and other factors set forth in reports and other documents filed by
MDS with Canadian and U.S. securities regulatory authorities from time to
time, including MDS's quarterly and annual MD&A, annual information form, and
annual report on Form 40-F for the fiscal year ended October 31, 2007 filed
with the Securities & Exchange Commission.
    Also note that all financial data is now shown on a U.S. GAAP basis. MDS
converted to U.S. GAAP reporting with the filing of the Company's 2007 Annual
Report and financial statements on January 29, 2008.

    Use of Non-GAAP Financial Measures

    The use of non-GAAP measures including terms such as net revenue,
adjusted EBITDA, adjusted EPS, new orders and backlog are used to explain the
operating performance of the Company. These terms are not defined by GAAP and
MDS's use may vary from that of other companies. MDS uses certain non-GAAP
measures so that investors and analysts have a better understanding of the
significant events and transactions that have had an impact on results or may
have an impact on MDS's financial outlook. MDS provides a description of these
non-GAAP measures and a reconciliation of these non-GAAP measures for actual
results to GAAP financial results in its MD&A and Annual Report.

    About MDS

    MDS Inc. (TSX: MDS; NYSE:   MDZ) is a global life sciences company that
provides market-leading products and services that our customers need for the
development of drugs, and the 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 has
more than 5,000 highly skilled people in 29 countries. Find out more at or by calling 1-888-MDS-7222, 24 hours a day.

For further information:

For further information: MEDIA: Janet Ko, (416) 213-4167,; INVESTORS: Kim Lee, (416) 213-4721,

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