MDS Pharma Services' Beijing Lab Earns Diabetes Distinction

With the Beijing facility's achievement of Level 1 certification for HbA1c testing from t he U.S. National Glyco-hemoglobin Standardization Program, the entire MDS Pharma Services Central Labs network has this status, reflecting unsurpassed accuracy in supporting diabetes clinical trials

(Philadelphia, Pa., October 28, 2005) - MDS Pharma Services, a leading provider of drug discovery and development solutions, today announced that its central laboratory in Beijing, China, has gained Level 1 certification for HbA1c testing from the National Glycohemoglobin Standardization Program (NGSP). Managed by the University of Missouri, the NGSP is dedicated to improving diabetes care by standardizing glycohemoglobin/hemoglobin A1c testing, a critical tool for monitoring the effectiveness of therapies to treat diabetics. The Beijing facility is one of 10 MDS Pharma Services-owned or affiliated laboratories to achieve this status, which reflects the highest levels of technical precision and accuracy in assessing HbA1c test results.

“Diabetes is a leading cause of morbidity and has become a major focus for MDS Pharma Services,” says Scott Neilson, General Manager of the MDS Pharma Services Central Labs division. “We are supporting some very large global diabetes programs and we expect this trend to continue. Having Level 1 status in all 10 laboratories that form the MDS Pharma Services Central Lab network has put us at the leading edge for diabetes trials and we will continue to excel in this area.”

In addition to the Beijing central lab, the other MDS Pharma Services-owned or affiliated Level 1 status facilities are located in North America, France, Germany, Singapore, Brazil, Argentina, Mexico, South Africa and Australia. This global capability benefits the sponsors of diabetes trials.

“The need for a very stringent technical control of both variability and precision is of major concern in diabetes trials,” explains Claire Huguet, Chief Scientific Officer and Vice President for the MDS Pharma Services Central Lab division. “Our success at gaining Level 1 certification in all laboratories should give clients the confidence that the same high quality, reliable results are available from any MDS Pharma Services owned or affiliated central lab around the world. NGSP has for some time been regarded as the gold standard for HbA1c analysis, and more and more clients are requiring Level 1 status.”

This status is particularly important in China, adds Beijing Laboratory Director Jenny Zhang. “Due to the export conditions in China, the ability to perform high quality analysis in-country is critical. More companies are looking at China for clinical trials, including those in diabetes. As the only central lab in China to have both College of American Pathologists (CAP) accreditation and now NGSP Level 1 certification for HbA1c, the MDS Pharma Services Beijing facility is well positioned to fill this growing demand for central lab services.”

The Central Lab division of MDS Pharma Services offers global support for both central laboratory and centralized ECG/Holter Services from facilities in the United States, Canada, Germany, France, Singapore, China, Argentina, Brazil, Mexico, South Africa and Australia. In addition to HbA1c, other diabetes biomarkers that Central Lab is able to assess include C-peptide, Glucagon, Insulin, Fructosamine and anti-GAD Ab among the most frequently requested.

About MDS Pharma Services

MDS Pharma Services offers a full spectrum of resources to meet the drug discovery and development needs of the pharmaceutical and biotechnology industries. With numerous facilities strategically located around the world, the company applies advanced scientific and technological expertise to each stage of the drug discovery and development process - Early Stage: lead optimization, pre-IND research, pharmaceutical and biopharmaceutical development, early clinical research (bioequivalence, phases I-IIa) and bioanalysis; and Late Stage: global clinical development (phases IIb-IV) and a central lab. For more information, visit MDS Pharma Services' Web site at http://www.mdsps.com .

MDS Pharma Services is an integral part of MDS Inc. (TSX: MDS; NYSE: MDZ). 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 http://www.mdsintl.com or by calling 1-888-MDS-7222, 24 hours a day.

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For further information, please contact Charlene McGrady (Charlene.mcgrady@mdsinc.com), MDS Pharma Services, 2200 Renaissance Boulevard, King of Prussia, Penn., Tel: (610) 239-7900, ext. 231.