MDS Inc.

MDS Inc.
ATOMIC ENERGY OF CANADA LIMITED

March 11, 2005 07:00 ET

MDS Inc. and AECL Announce Mediation Process for MAPLE Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MDS INC.

TSX SYMBOL: MDS
NYSE SYMBOL: MDZ

AND ATOMIC ENERGY OF CANADA LIMITED

MARCH 11, 2005 - 07:00 ET

MDS Inc. and AECL Announce Mediation Process for MAPLE
Project

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - MDS Inc.
(TSX:MDS)(NYSE:MDZ) -

Judge Stephen Goudge Appointed as Mediator

MDS Inc. (TSX:MDS)(NYSE:MDZ), and Atomic Energy of Canada Limited (AECL)
today announced that the two companies have reached an agreement to seek
a mediated resolution of the issues related to the construction,
commissioning and operation of the MAPLE facilities in Chalk River,
Ontario. These facilities, when commissioned, will exclusively produce
medical isotopes used globally for the diagnosis and treatment of
disease.

Ontario Appeals Court Judge Stephen Goudge has been appointed as the
mediator and will work closely with the two parties. The Government of
Canada has agreed to have a representative be a formal observer in this
process.

"We see the initiation of this mediation process as a positive step
towards the resolution of the issues related to this project," said
President and CEO of MDS Inc., John Rogers.

Robert Van Adel, President and Chief Executive Officer of AECL added,
"We are entering into this voluntary mediation process with the spirit
and intent of arriving at a satisfactory resolution to all of the
outstanding issues and we look forward to the successful commissioning
of the MAPLE reactors."

About 15 to 20 million nuclear medicine procedures are performed each
year around the world. MDS, through its isotopes division MDS Nordion,
supplies over half of the global supply of reactor-produced medical
isotopes.

MDS Inc. has more than 9,000 highly skilled people in 25 countries. We
provide a diverse range of superior products and services to increase
our customers' speed, precision and productivity in the drug development
and disease diagnosis processes. We are a global, values-driven health
and life sciences company, recognized for our reliability and
collaborative relationships as we help create better outcomes in the
treatment of disease. Find out more at www.mdsintl.com or by calling
1-888-MDS-7222, 24 hours a day.

About AECL

AECL is an integrated nuclear technology company providing services to
nuclear utilities worldwide. Our 3,500 employees are focused on
delivering R&D support, nuclear services, design and engineering,
construction management, specialist technology, and waste management and
decommissioning in support of CANDU reactor products.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    MDS Inc.
    Investor Relations: Sharon Mathers
    Vice-President, Investor Relations
    (416) 675-6777 x2695
    smathers@mdsintl.com
    or
    MDS Inc.
    Media Relations: Mike Nethercott
    Vice-President, Corporate Marketing and Communications
    (416) 213-4656
    mnethercott@mdsintl.com
    or
    AECL
    Dale Coffin
    Director, Corporate Communications
    (905) 403-7457
    coffind@aecl.ca