Toronto, CANADA--June 13, 2002--MDS Laboratory Services, London was informed late yesterday of concerns by the Ontario Ministry of Environment and Energy regarding the operations of its water testing facility.

MDS Laboratories takes its microbiology water testing responsibilities very seriously utilizing testing methods accredited by the Standards Council of Canada and Canadian Association for Environmental Analytical Laboratories. MDS participates regularly in proficiency testing to assess the accuracy of its methods.

Any adverse water results are immediately reported to the appropriate authorities including relevant water operators, the Ministry of Environment and Energy and the Ministry of Health and Long Term Care as per the regulations.

As an accredited water testing facility since 1995, MDS supports the regular review and accreditation of water testing laboratories. MDS will participate fully in clarifying and resolving issues raised by the MOEE.

MDS Laboratory Services is a division of MDS Inc., an international health and life sciences company. MDS Diagnostic Services is a leading provider of laboratory services in North America.

For more information visit www.mdsdx.com or http://www.mdsintl.com/#'wx'newtarget.

Contact Information:

Jennifer Bowman, Vice President, External Affairs, 416-213-4182