MDS Nordion, Guerbet, and Cyceron Announce Partnership to Develop New Diagnostic Agents

Collaboration Will Assess New and Innovative Imaging Agents for Cancer Detection

OTTAWA, June 24, 2010 - MDS Nordion, a leading provider of products and services to the
global health science market, Guerbet, a pharmaceutical group specialized
in medical imaging, and Cyceron, a biomedical imaging centre in
France, announced today they have entered into an agreement to develop new
Positron Emission Tomography (PET) radiotracers for cancer diagnostics. The
project, which brings together three world-class scientific teams, will
investigate a radiopharmaceutical using Gallium-68 (Ga-68) to assess its
functionality and image quality, develop a formulation to allow preparation at
an imaging clinic and evaluate commercial feasibility.

Under the terms of the agreement, MDS Nordion, Guerbet, and Cyceron will
provide complementary expertise in radiochemistry, radiolabeling and targeted
delivery of radioisotopes. Guerbet will lead the project for its duration as
the scientific coordinator. In addition, each party will provide scientific
resources and in-kind contributions for the project.

"It is exciting that these partners, working in complementary areas and
from different nations, have deployed their efforts to advance this technology
that will ultimately benefit patients," said Claire Corot, Vice President,
Research, Guerbet. "Currently, PET imaging agents have contributed to
considerable diagnostic advances; however, our project will investigate and
determine if a Gallium-68 based radiotracer can become an additional imaging
tool more widely used by clinicians."

Support and funding of this project will be provided to Guerbet through
OSEO Innovation, under the authority of France's Ministries of Finance,
Industry, Small Businesses and Research. In addition, Eureka - an
intergovernmental initiative aimed at enhancing European competitiveness - has
assisted in facilitating access and eligibility to national public and private
funding. This project has received the internationally recognized Eureka label
indicating the organization's full support. Cyceron is also supported by the
Regional Council of Lower Normandy, OSEO Lower Normandy and the European
Regional Development Fund.

"This project is another example of how MDS Nordion continues to be a
valued partner by leaders in the molecular imaging field," says Peter Covitz,
Senior Vice-President, Innovation, MDS Nordion. "We believe that partnering
with Guerbet and Cyceron - utilizing our different strengths and capabilities
- will further advance technology and improve molecular imaging for the
future."

"This project meets the mission of Cyceron, pooling skills, experience,
technical knowledge and financial resources to advance technology platforms
that will ultimately benefit hospitals and research facilities," said Bernard
Mazoyer, Director of Cyceron. "Through this groundbreaking research we hope
to bring new and innovative PET imaging tracers from conceptualization to
realization."

Currently, the most common radioisotope used in PET imaging is
Fluorine-18, used to create the tracer for glucose, F-18 fluorodeoxyglucose,
commonly known as FDG. However, Gallium-68 is viewed by the research and
medical communities as an important emerging isotope for the development of
new diagnostic PET tracers. Gallium-68 is produced from a small generator
rather than directly from a cyclotron, greatly reducing the infrastructure
needed to prepare an agent for clinics.

About Guerbet

Guerbet is the only pharmaceutical group fully dedicated to medical
imaging. It has the most comprehensive range of x-ray and MRI contrast media
available worldwide. These products assist medical professionals
(radiologists, cardiologists, oncologists, etc.) in better diagnosing and
treating their patients (cardiovascular, cancer, inflammatory and
neurodegenerative diseases).

To develop new products and assure its future growth, every year Guerbet
devotes significant resources to research and development with 180 R&D
employees and an amount equivalent to approximately 10 percent of sales.

Guerbet is solidly positioned in Europe with a market share of 25
percent and is expanding its presence in the United States and Japan.
Guerbet, listed on Eurolist Euronext Paris in compartment B had sales in
2009 of (euro)335.5 million with a total workforce of 1,300 employees.

For additional information please consult: www.guerbet.com.

About Cyceron

Established in 1985, Cyceron is a centre for biomedical imaging and
research in the field of neuroscience. The organization is a public interest
group, working under the aegis of the main national institutes of research
CEA, CNRS, Inserm. In addition, Cyceron has established partnerships with the
University of Caen, the University Hospital of Caen, the François Baclesse
Anti-Cancer Centre, GANIL, as well as the Lower Normandy Region.

Cyceron is one of three advanced research centres in France that studies
Positron Emission Tomography. The organization continues to advance its
research and development programs thanks to generous financial support from
the French State, the Territorial Communities, and the European Union (FEDER).
Cyceron accommodates over 6000 m(2) of unique and complex laboratories, with
instruments for pre-clinical and clinical research. In addition, it houses a
cyclotron and chemistry laboratories for the production of
radiopharmaceuticals, molecular and cellular biology laboratories, associated
physiology installations, positron cameras, high-resolution magnetic
resonance imaging devices, and electroencephalographic mapping devices.

Cyceron hosts the Centre for Imaging-Neuroscience and Applications to
Pathologies (CI-NAPS), a research unit that is part of the Methodological
Developments in Positron Emission Tomography Group, headed by Louisa Barré.

For more information about Cyceron visit www.cyceron.fr.

About MDS

MDS Inc. (TSX: MDS; NYSE: MDZ) is a global health science company that
provides market-leading products and services used for the prevention,
diagnosis and treatment of disease. We are a leading provider of innovative
technologies for use in medical imaging and radiotherapeutics, and
sterilization technologies benefiting the lives of millions of people in more
than 65 countries around the world. Our products and services are used daily
by pharmaceutical and biotechnology companies, medical-device manufacturers,
hospitals, clinics and research laboratories. MDS has more than 700 highly
skilled people in five locations. Find out more at www.mdsnordion.com.

For further information: MEDIA: Tamra Benjamin, +1(613)-592-3400,
ext. 1022, tamra.benjamin@mdsinc.com; INVESTORS: Ana Raman, +1(613)-595-4580,
investor.relations@mdsinc.com

For further information: MEDIA: Tamra Benjamin, +1(613)-592-3400,
ext. 1022, tamra.benjamin at mdsinc.com; INVESTORS: Ana Raman, +1(613)-595-4580,
investor.relations at mdsinc.com