The MDS Canadian network provides faster, easier access to new tests.

Toronto, CANADA--June 11, 2001--MDS Inc. (TSE: MDS; NYSE: MDZ) is creating a national specialty diagnostic service as a part of MDS Laboratory Services. This makes MDS the first laboratory to provide national access to specialty diagnostic tests in Canada. The recognition of the value of early disease detection is increasing and leading to a parallel demand for sophisticated diagnostic tests. These new tests will help health care professionals to make better decisions to improve health, to detect genetically based disease factors, diagnose disease, evaluate treatment effectiveness, and monitor patient health status. Dr. Debbie Griswold, Vice-President Medical Affairs, MDS Metro Laboratory Services in British Columbia, noted "The diagnosis and treatment of cancer is just one example of the benefit of this platform for patients. Now physicians anywhere in Canada will have access to the genetic predisposition tests for breast, ovarian and colon cancers as well as some of the newer tests for early detection of cancer."

MDS is the largest provider of diagnostic testing in Canada with major diagnostic service operations in British Columbia, Alberta, Saskatchewan, Quebec and Ontario. Each year in Canada, MDS serves more than 13 million patients and provides information for more than 16,000 clinicians through more than 260 patient service centres. MDS is linking and expanding on these current provincial capabilities to create a national integrated platform for all Canadians that will provide physicians, and the patients they serve, the broadest access to diagnostic testing services in Canada.

Using the MDS international window on the world of technology, additional new innovative tests will be identified and those tests with proven clinical benefit will be added to the platform. The full menu of new tests will be available to help improve the health of all Canadians. These new, highly specialized tests include the patented genetic predisposition tests for breast, ovarian and colon cancers; tests for early detection and monitoring of ulcers, osteoporosis, and heart disease; and tests to detect changes in hormones such as testosterone. In addition, this new national network will allow MDS to provide physicians across Canada with access to the in-house laboratory expertise of the various MDS academic health science centre partnerships such as Toronto Medical Laboratories. Any physician in Canada can contact MDS to arrange patient access to these new and specialized tests. Please see www.mdslabscanada.com for more information.

Dr Brian Sheridan, Vice-President Medical Affairs for MDS Laboratory Services Canada, states "This MDS national service, along with the MDS CO L-LAB-ORATE(TM) program, will not only help keep Canadian physicians up to date on the latest diagnostic tests for their patients but will also allow them easy access to these new tests."

The MDS Diagnostic Sector (www.mdsdx.com) is a leading provider of diagnostic services in North America and a part of MDS Inc. (TSE: MDS; NYSE: MDZ), an international health and life sciences company. The MDS focus is on using science to advance health, to fight disease. It does this by providing: laboratory testing, imaging agents for nuclear medicine testing, sterilization systems for medical and consumer products, research services to speed discovery and development of new drugs, therapy systems for planning and delivery of cancer treatment, analytical instruments to assist in the development of new drugs, and medical / surgical supplies. MDS employs more than 10,000 highly skilled people at its global operations on five continents. Detailed information about the company is available at the MDS Web site at www.mdsintl.com or by calling 1-888-MDS-7222, 24 hours a day.

For further information: Patricia Everitt, Director of External Communications, MDS Diagnostic Sector,
(416) 213-4258, peveritt@mdsintl.com