MDS Global Business Practice
Standards

Core Purpose:

At MDS our vision is to build an enduring health and life sciences
company, making a distinctive contribution to the health and well-being
of people around the world.

I
am very happy to share with you the first edition of the MDS Global Business
Practice Standards (the "Practice Standards").

These Practice Standards are being
communicated to you at this time as a result of two converging factors.
First, as many of you are aware, the global business environment in which
MDS operates has become much more sensitive to business practice issues
and the reputations of institutions has become increasingly fragile. In
fact, laws have been passed in Canada, the United States and Europe requiring
organizations to put in place both Codes of Conduct (U.S. Sarbanes-Oxley
Act, New York Stock Exchange Listing Regulations, U.S. Security and Exchange
Commission Guidelines and Best Practices) as well as information handling
practices (Canada's Personal Information Protection and Electronic Documents
Act, U.S. Health Insurance Portability and Accountability Act and the EU
Data Protection Directive and other applicable data protection legislation).
Second, as MDS has grown in size and geography, it has become increasingly
difficult to communicate our Practice Standards and expectations to each
employee personally - these Practice Standards are meant to help MDS employees
understand who we are and what we do. These Practice Standards are meant
to assist all of us in meeting the legislated requirements and in vigilantly
protecting the company's reputation.

The Practice Standards are a practical
guide to assist each of us in making the right business decisions every
day. They set out universal principles which govern the way we carry-on
our business at MDS, they provide clarity about the expectations at MDS
and they identify the other MDS resources and policies that you can use
to support your decision making. There is nothing "new" in them - they
are merely a collection of our existing business practices that are founded
in our Core Values of Mutual Trust, Genuine Concern and Respect for People,
Integrity and Commitment to Excellence.

As MDS employees, we are all trustees
of the investments made in MDS by our shareholders and we owe it to them
to carry on our business in a manner that will strengthen our reputation
and enhance our ongoing success. Conducting our business with integrity
and in accordance with these Practice Standards is crucial to the company's
success, its reputation - and its future. As with many of our customers
and peer organizations that have put similar Business Practice Standards
or Codes of Conduct and Information Practice Policies in place, we have
decided that the best way to acknowledge our commitment to the Practice
Standards is to have our employees, including our Board Members, sign the
Personal Pledge provided at the back of the Practice Standards document.

So, we expect all of our employees
to read the Practice Standards, to understand the expectations placed on
them in their roles and to sign the Personal Pledge. We encourage each
of you to keep a copy of the Practice Standards handy for easy reference
and to bring any questions or concerns forward in the manner set out in
the Standards.

Finally, we thank you for remembering
that MDS' reputation is in our hands, every day.
John A. Rogers, CEO

GLOBAL BUSINESS PRACTICE STANDARDS

TABLE OF CONTENTS

|Our
Core Values                                               
|--------------------------------------------------------------
|Our
Global Business Practice Standards                        
|You
Are an MDS Person                                         
|What
Can You Do If You Have a Business Practices Concern?     
|Feel
Comfortable Raising Issues - There Will Be No Retribution
|Our
Practice Standards                                        
|CONFLICT
OF INTEREST                                          
|Gifts
and Improper Payments                                   
|Family Members                                                
|Ownership
of Other Businesses                                 
|Outside
Employment                                            
|Service
on Boards                                             
|MDS
Business Opportunities                                    
|CONFIDENTIAL
INFORMATION                                      
|Third Party Confidential Information                          
|MDS Master Privacy Policy (Corporate Policy)                  
|USE
OF COMPANY ASSETS                                         
|INVENTIONS
AND INTELLECTUAL PROPERTY                          
|PERSONAL
CONDUCT                                              
|Respect
and Dignity in the Workplace                          
|Equity
in the Workplace                                       
|No
Discrimination                                             
|No
Harassment                                                 
|Safe
Workplace                                                
|ENVIRONMENT,
HEALTH AND SAFETY                                
|SALES
AND MARKETING PRACTICES                                 
|FAIR COMPETITION                                              
|COMPETITIVE
INFORMATION                                       
|ACCURACY
OF RECORDS                                           
|COMPLIANCE
WITH LAWS                                          
|DISCLOSURE
OF INFORMATION TO MEDIA & INVESTORS                
|INSIDER TRADING                                               
|What
Are the Limitations on Trading?                          
|What
is "Material Non-Public Information"                     
|Additional
Requirements for "Insiders"                        
|Be
Thoughtful When You Are Trading MDS Shares                 
|POLITICAL
AND GOVERNMENT ACTIVITIES                           
|Political
Activities                                          
|Government
Relations and Lobbying                             
|PLEDGE
OF THE MDS BOARD OF DIRECTORS                          
|PLEDGE
OF THE MDS EXECUTIVE MANAGEMENT TEAM                   
|MDS
PERSONAL PLEDGE (Employee)                                
|MDS
PERSONAL PLEDGE (Director)                                
|MDS
PERSONAL PLEDGE (Executive Management Team)               

Our
Core Values

These are fundamental values that guide the
way we operate:

|Mutual
Trust
Having confidence enough to rely on others and to be open to new
people and different ideas. | Genuine
Concern and Respect for People
Showing genuine concern for others. Treating people as individuals,
with understanding and appreciation.
|--------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------
|Integrity
Being reliable and accountable in word and behaviour.                                           | Commitment
to Excellence
Striving to reach our full potential as a company and as individuals.Doing the right things the right way.            

Our
Global Business Practice Standards

These are the practices we use every day to apply our Core Values
to the businesses we operate in:

|Standards
of Trust
Conflicts of Interest

Confidential Information

Use of Company Assets

Inventions and Intellectual Property                                         | Standards
of Respect for People
Personal Conduct

Environment, Health and Safety

Sales and Marketing Practices

Fair Competition

Competitive Information
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|Standards
of Integrity
Accuracy of Records

Compliance with Laws

Disclosure of Information to Media or Investors

Insider Trading

Political and Government Activities | Standards
of Excellence
At MDS, we continually strive for excellence in everything we do.                                                                 

|OUR GLOBAL BUSINESS PRACTICE STANDARDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|You
Are an MDS Person
Since the inception of MDS in 1969, the company has dedicated itself
to hiring competent and caring people. You are at MDS because we believe
that you are that kind of person.MDS demonstrates commitment to you by striving to provide you with a
participative working climate. This environment fosters teamwork, innovation
and encourages exceptional performance while, at the same time, allowing
you as an individual to maintain your integrity, concern and respect for
other people and a commitment to your personal life.In return for this commitment, MDS asks that while you are at work,
you meet the expectations that are provided in our Global Business Practice
Standards. This is because MDS' reputation is sustained, enhanced or diminished
by the personal actions and decisions that each of us makes every day.These Global Business Practice Standards are not an attempt to change
the behaviour of MDS people. We know that we have good people who live
our Core Values every day. Instead these Global Business Practice Standards
are a tool to assist you in your decision-making, particularly where you
may have doubt as to company policy or expectation and meeting regulatory
requirements. The Practice Standards define MDS' minimum expectations of
the organization. Business Units have policies that provide further expectations
and detail for the specific business unit employees and apply in addition
to the expectations of the Practice Standards.It is expected that you will read these Global Business Practice
Standards carefully, understand them, keep them handy for easy reference
and incorporate them into your practices and actions every day.And remember - the best thing that you can do when you are unclear about
a particular business practice or potential ethical issue is to ask for
help.
|"We have the strength, the leadership,
the management depth and the talented committed employees to continue to
build an enduring company."
- John Rogers, CEO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|What
Can You Do If You Have a Business Practices Concern?
Business practices, legal and ethical issues may often be difficult
or complex subjects. It is not always natural or easy to ask for clarification
on these subjects or even more, to report a suspected violation. Please
do not be reluctant to ask questions, seek clarity or raise an issue, because
the potential impact and risk to customers, employees and the company of
not doing so are too great to ignore. No one wins when we fail to speak
up, because the reputation - and ongoing success - of our company depends
on the decisions that each of us makes every day. Remember sound and ethical
business practices are not an obligation of a few but of each and every
one of us.For Additional Guidance:If you have a question about business
practices, there are a number of different resources you can go to for
advice. The following diagram outlines your options. Please feel free to
go to the resource that you are most comfortable with.Your question/issue will be handled confidentially and you can remain
anonymous.*Dial your country code then the number (see www.att.com/traveler).
Translation Services are available.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Feel
Comfortable Raising Issues - There Will Be No Retribution
MDS wants every employee to feel comfortable raising business practice,
ethical or legal issues internally. In fact, MDS commits to listen to all
issues and concerns raised and to respond to all questions asked. As a
result, MDS strictly prohibits reprisals or retaliation against anyone
who raises a business practice, ethical or legal issue involving other
individuals.Also, do not be afraid that your question, concern or issue may not
be valid. When it comes to business practice, ethical or legal issues,
there is no such thing as an insignificant question. Use the individuals
identified on the previous page to ask a question, get clarification, report
a suspected violation, or voice a concern. It is important that any question,
potential problem or concern be reviewed as soon as possible to prevent
major issues from developing.Also, when faced with a potential business practice issue, think about
your situation. It is important to each of us that we feel good about the
decisions we make.Additional Guidance:If you are uncomfortable with making a decision,
ask for assistance from your Supervisor or Manager, HR Representative or
one of the resources listed on page 5.The Integrity and Crisis Communication Alertline is one of the ways
to report a concern or get information or advice anonymously, if desired,
when a matter might not be adequately resolved. The Alertline is operated
by specially trained third-party representatives. The Alertline representatives
will listen to your concerns, ask questions and review the information
provided. They will then forward the matter to the MDS Chief Privacy Officer
and MDS General Legal Counsel who will take appropriate action. The caller
can arrange to receive information about the company's response to the
call through the Alertline Service Provider. Refer to the Alertline communication
for more detailed information on the service and how to access it.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|The key principles found in these Global Business Practice
Standards are listed below:
Our Practice StandardsWe will avoid any possible conflict of interest, or the appearance of
a conflict of interest, between our personal interests and our responsibility
to MDS.We will maintain the confidentiality, privacy and security of information
entrusted to us in strict accordance with legal and ethical obligations.We will use company assets for the legitimate purposes of MDS' businesses.We will constantly seek to create innovations in our business and notify
MDS when we may have developed something new.We will show genuine concern and respect for other people and treat
one another with understanding and appreciation.We will operate our businesses in a safe and healthy manner, we will
respect the environment and we will use our natural resources responsibly.We will conduct sales and marketing activities in accordance with MDS
Core Values, MDS policies and the law.We will uphold the ideals of free and competitive enterprise.We will not collect information on our competitors through inappropriate
means.We will reflect our businesses accurately in our records.We will meet or exceed all applicable laws and regulations in the countries
in which we operate.We will protect the company's reputation by allowing the company's designated
spokespeople to deal with inquiries from the media or investors.We will not trade MDS shares when in possession of "material" non-public
information.We will not seek to influence any political process or governmental
process in an inappropriate manner.                                                                                                                                                                                                                                                                                                                                                                                                       

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | CONFLICT
OF INTEREST
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------
|Standard: We will avoid any possible conflict of interest, or
the appearance of a conflict of interest, between our personal interests
and our responsibility to MDS.

While MDS encourages its employees to have active and fruitful lives
outside of the office, each of us should avoid entering into any arrangement
that may impair, or appear to impair, our ability to make objective and
fair decisions when meeting our responsibility to MDS. A conflict of interest
arises when our personal interests or activities influence (or appear to
influence) our ability to act in the best interests of MDS. A conflict
of interest may also exist if the demands of any outside activity hinder
or distract us from the performance of our jobs or cause us to use MDS
resources other than for MDS purposes. Examples of situations that may
give rise to a conflict of interest include:Soliciting gifts or charitable donations from customers or suppliers

Accepting improper payments

Doing business with family members who have a significant financial interest
in another company in one of MDS' industries

Having a personal interest in a contract with the company

Managing your own business

Serving as a director of another business without proper authority

Taking an MDS business opportunity for yourself

Performing as a consultant to a competitor or supplier
For each of us, it is our responsibility to ensure that we remain free
of conflicts of interest in the performance of our duties at MDS. To do
so, we must disclose all actual or potential conflicts of interest and
obtain approval from management before pursuing the activity. As well,
it is also important to not use significant amounts of time committed to
MDS to work on outside interests or commitments.
Because of the importance of MDS' reputation in the marketplace, MDS
requires each of us take special care to avoid any situation where a conflict
of interest or potential conflict of interest may arise.MDS prohibits personal loans to its employees.

|Gifts and
Improper Payments
A conflict of interest may arise if you accept gifts, loans, services
or any form of compensation from suppliers, customers, competitors or others
seeking to do business with MDS. Social amenities customarily associated
with legitimate business relationships are permissible. These include the
usual forms of entertainment, such as lunches or dinners, as well as occasional
gifts of modest value. While it is difficult to define "customary" or "modest"
by stating a specific dollar amount, common sense should dictate what would
be considered extravagant or excessive. If a disinterested third party
would be likely to believe that the gift affected your judgment, then it
is too much. All of MDS business dealings must be on arms-length terms
and free from any favourable treatment resulting from the personal interests
of our employees.Family MembersA conflict of interest may arise if family members have positions of
influence in a supplier, customer or competitor to MDS or have a "significant
financial interest" in a supplier, customer, business partner or competitor
of MDS (see below). In such circumstances, and before doing business with
such organization, disclose the situation to management and discuss it
with them. The approval, if granted, should be documented.Family members include your:Spouse

Parents

Children

Siblings

In-laws

Life partnerOwnership of Other Businesses
Our personal investments can cause a conflict of interest. We should
not own a "significant financial interest" in any company that does business
with MDS, is seeking to do business with MDS or who is a competitor of
MDS.A "significant financial interest" includes:An employee or an employee's family member owns more than 1% of the outstanding
capital in a business

The investment in that particular company represents more the 5% of your
total assets (or the assets of your family member).
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Outside Employment
Any outside activity should be totally separate from company work and
your full commitment to your responsibilities at the company. This includes
a second job or self-employment. We should not use company time and/or
resources and/or other employees' services for outside activities unless
management specifically authorizes it. When considering outside opportunities,
please remember your obligations under the Inventions and Intellectual
Properties Business Practices Standard.Service on BoardsServing as a director of another company, a member of a board of a non-profit
organization or a standing member of a government agency may create a conflict
of interest.In general, MDS encourages employees to become involved as the directors
of other organizations. However, before accepting an appointment to a board
or a committee of any organization whose interests may conflict with MDS,
you should discuss it with your Business Unit President.In general, outside directorships will be permitted by MDS provided
that:The directorship does not conflict with MDS or the individual's day-to-day
commitments to MDS; or

The directorship is approved in writing by the Business Unit PresidentMDS Business Opportunities
You must never take an MDS business opportunity for yourself.An MDS opportunity is any opportunity you come across in your job, whether
or not MDS decides to proceed with it or not. An example of an MDS opportunity
is if you are working on a product or service agreement or possibility
with a customer or vendor and you think you could provide the service better
or cheaper than MDS. In this situation, you cannot arrange a business deal
with the customer or vendor to provide the product or service because you
gained knowledge of the situation during your employment at MDS.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Additional Guidance:If you have any
questions or doubt as to whether any particular situation gives rise to
a conflict of interest, consult a member of the Legal Department for a
review and decision on the situation. Should you wish to appeal the decision
made, the matter will be referred to the Business Unit President. The Business
Unit President's decision will be final.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|TRUST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | CONFIDENTIAL
INFORMATION
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------
|Standard: We will maintain the confidentiality, privacy and
security of information entrusted to us in strict accordance with legal
and ethical obligations.

Confidential information is both sensitive and a valuable asset. It
includes facts, data, personal information and knowledge that have not
been disclosed to the public in all forms (i.e. electronic, paper, oral,
etc.). Many different types of information have value because they are
maintained in confidence. Such information includes un-patented technology
and laboratory test results, as well as non-technical data such as financial,
marketing and strategic information.Confidential information that has commercial value to competitors or
others who have an interest in doing business with MDS is sometimes referred
to as "proprietary information" or a "trade secret".Confidential information that contains information identifying a specific
individual is referred to as "personal information". Personal information
is subject to special rules of collection, use and disclosure under the
privacy laws in those jurisdictions where MDS carries on business.Examples of confidential information, personal information, proprietary
information and trade secrets include but are not limited to (all referred
to as "confidential information"):MDSFinancial information including budgets, costs and profit margins

Human resource information including personnel files and salary informationStrategic plans

Planned business acquisitions or divestitures

Marketing strategiesMDS Diagnostic Services
Laboratory data and patient information

Lab designs, processes and techniques

Lab layouts

Pricing information

Regulatory plansMDS Pharma Services
Clinical trial data

Formulations

Compilations of data

Research and development data
|MDS Nordion
Regulatory plans

Production schedules

Research and development data

Quality dataMDS Sciex
Design specifications

Inventions

Engineering designs

Manufacturing processes and techniques

Manufacturing layouts

Blueprints

Prototypes

Computer programs
If you have access to confidential information protect it. Be cautious
about discussing company business when you may be overheard. Be careful
when discussing confidential information on wireless technologies (i.e.
cell phones, cordless phones or PDAs) and when sending confidential information
over the Internet because it may be intercepted. Make sure not to leave
confidential information in meeting rooms, at photocopy machines or printers
or out on your desk when unattended. Keep your computer, cell phone or
PDA in a safe place and use a password to limit access to the information
stored on it.
Confidential information needed for your job should be used only for
that purpose. This information should be shared only with other employees
who need it to do their jobs.Confidential information must not be given to persons outside MDS. If
you have a need to share information with others outside of MDS, a confidentiality
agreement must be signed and/or prior approval from a member of the Legal
Department is required.The types of people that we should not share confidential information
without approval include:Competitors

Customers

Contractors

Patients/Individuals

Suppliers

Consultants

Audiences where MDS employees are making a presentation                                                                                                                                                                                                                                                                    
|Unintended or other types of disclosure
of confidential information should be immediately reviewed with your Supervisor/Manager
and/or a member of the Legal Department to determine if further action
is appropriate. 
Confidential information should not be discussed or shared in any way
even after you leave the company.Third Party Confidential InformationWe are also often in receipt or possession of the Confidential Information
of other parties. Often this information is protected by, and its use governed
by Confidentiality Agreements with those parties. You must treat this
information in the same way you treat MDS Confidential Information.The Legal Department has developed processes to assist you in maintaining
our confidentiality obligations and you should consult a member of the
Legal Department before signing a confidentiality agreement with another
organization.MDS Master Privacy
Policy (Corporate Policy)The MDS Master Privacy Policy establishes MDS' universal standards
on how we will protect the personal information of individuals including
employees, patients, customers and third parties who share such information
with the company. It also acknowledges that businesses in certain segments
or other geographic areas may have additional requirements that apply to
certain types of services or personal information.In general, any collection of personal information of individuals will
not be done without first providing notification of the purposes of collecting,
using and disclosing it and when required, obtaining consent from the individual
for these purposes. Any additional uses or disclosures of personal information
should not be undertaken without obtaining additional consent.                                                                            
|If you have any questions concerning
the collection, use or disclosure of personal information or what constitutes
personal information please consult the Privacy Officer of your Business
Unit as identified in the MDS Master Privacy Policy,which can be
accessed through the Legal sectionon LINK (under MDS' Department
Information).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Question:My partner just had a lab test done at an MDS
lab. Can I call the lab to find out the results?
Answer: No. The results are the personal information of your partner
and are not available to you without the appropriate authorization from
your partner or in some jurisdictions, the ordering physician                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Question:I received a confidential document through the
MDS e-mail system that was not intended for me. What should I do?
Answer: Bring it to the attention of your Manager or Supervisor.
Then contact the individual who sent it for direction on how to deal with
it. Then delete the e-mail.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Additional Guidance:
For more information on confidential information, see the Legal sectionon
LINK (under MDS' Department Information).Refer to specific Business Unit Policies that provide further information
or consequences of inappropriate collection, use and disclosure of confidential
information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|TRUST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | USE
OF COMPANY ASSETS
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------
|Standard: We will use company assets for the legitimate purposes
of MDS' businesses.

MDS provides us with a place to work and with the tools to do our jobs.
In return, we are expected to respect and protect company assets, including:Facilities

Office supplies

Equipment

Confidential information

Communications systems (including computers, phone, voicemail, e-mail,
the Internet and the MDS Intranet)
All of these assets are to be used primarily for company business and not
for personal use. We are permitted to use MDS assets for occasional personal
use as long as our use:
Does not affect job performance or disrupt others

Is truly occasional in nature

Does not result in any additional billing to MDS

Does not access or transmit material containing derogatory, racial, gender
or religious comments, sexual content, offensive language, material which
would negatively reflect upon MDS or be likely to offend co-workers or
contents prohibited by law or regulation.

Is not used to carry on any form of business activity outside of the course
of our duties with MDS - without MDS approval.
Copying software, tapes, articles and books (without an appropriate license)
may violate copyright laws and represents a potential financial and legal
liability for MDS. Please consult a member of the Legal Department if you
have any questions related to copying any such materials.
Our personal privacy is not protected on our information technology
and communication systems. MDS reserves the right to access or monitor
all its information technology and communication systems.
|Question:I know that MDS encourages our involvement in
the community. I work with physically challenged adults and our charitable
group produces a quarterly newsletter. Can I type the newsletter during
my lunch breaks and when my workday is over?
Answer: Using your PC on your own time for volunteer purposes is
an acceptable use of company assets for personal reasons. However, use
of the photocopy machine for bulk copies would not be acceptable without
prior approval                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | INVENTIONS
AND INTELLECTUAL PROPERTY
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------
|Standard: We will constantly seek to create innovations in our
business and notify MDS when we may have developed something new.

Among MDS' most valuable assets is its intellectual property - including
patents, trade secrets, trademarks, copyrights and other proprietary information.
It is MDS' policy to establish, protect, maintain and defend its rights
in all commercially significant intellectual property and to use those
rights in responsible ways. As a result, all employees must take steps
to safeguard these assets.Similarly, MDS respects the intellectual property rights of others.
Unauthorized use of the intellectual property rights of others may expose
MDS to civil lawsuits and damages.Ideas, inventions, discoveries and improvements conceived, created or
reduced to practice in the course of your employment with MDS are the property
of MDS. If you believe that you have created something new, you have an
obligation to notify MDS so that the idea, invention, discovery, improvement
or information can be assessed and, if appropriate, protected like any
other proprietary information of MDS. Intellectual property that you may
be working on includes such things as ideas, inventions, computer programs
and documents, which relate to MDS' businesses, anticipated businesses
or research and development.Additional Guidance:If you believe you have created or developed
something new and innovative, please notify your Manager or Supervisor
and/or the Legal Department or, if applicable, the Intellectual Property
Committee of your Business Unit.
|Question:I have used my work knowledge and acquired understanding
of clinical trials to develop a software program to improve the efficiency
of the recruitment process. I did it on my own time. Do I need to tell
MDS about what I have developed?
Answer: Yes, regardless of when the software program was developed,
you used your acquired work knowledge and understanding of clinical trial
processes as part of your job with MDS. Therefore, you need to tell MDS
about your invention                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|TRUST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | PERSONAL
CONDUCT
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------
|Standard: We will show genuine concern and respect for other
people and treat one another with understanding and appreciation.

Since the inception of MDS in 1969, MDS has endorsed a philosophy of
fairness and integrity in how we treat employees, customers, suppliers,
regulators, shareholders and others who interact with the company. MDS
believes that our business success is directly related to our philosophy
of ensuring that all people who interact with the company are treated in
an ethical, fair and respectful manner and by meeting the highest standards
of professional conduct. Our management practices have always been based
on the principle of recognizing people for their abilities. We also have
an ongoing goal to provide a work environment, which is free from discrimination
and where all employees are provided with the opportunity to realize their
fullest potential.MDS believes that equality of opportunity and fairness of treatment
for all individuals are basic human values. In commitment to that belief,
MDS has always stressed its fundamental value of "respect the individual"
which entails treating people as individuals with the same understanding
and appreciation that we seek for ourselves. As MDS people, we should each
treat people the way that they wish to be treated.Respect and Dignity in the
WorkplaceMDS is committed to fostering a productive work environment based on
our Core Values. As MDS people we all need to share in the responsibility
for continuing to create a positive work environment, built on teamwork,
trust, communication and respect.One of the clearest ways to demonstrate respect is through our behaviour
and communication with others. This can take many forms, including: listening,
providing direct and honest answers, accepting differences, valuing diversity,
respecting an individual's privacy, recognizing accomplishments and planning
for a common goal. Each will contribute to our success, as individuals
and as a company.
|Equity
in the Workplace
MDS is committed to the principle of workplace equity that is aimed
at identifying and eliminating policies and practices within the company
that may prevent or limit designated groups from maximizing their potential.
The designated groups specifically mentioned in the policy are: women,
native people, people of a visible minority and persons with disabilities.No DiscriminationMDS is committed to the principle of equal opportunity and supports
non-discrimination policies by which discrimination on the grounds of race,
colour, national origin, political or religious affiliation, sex, age,
sexual orientation, marital status, family relationship, disability and
any other grounds outlined in relevant Human Rights legislation is prohibited.No HarassmentMDS expects and promotes a workplace free of harassment in any type
or form, whether sexual, physical, verbal, intimidation or bullying. Harassment
committed by any employee, visitor, client or contractor is prohibited.Safe WorkplaceMDS supports a safe workplace and does not condone any violence in the
workplace. MDS will act quickly and respond fairly to any incidents of
workplace violence.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Question: A person in my work group has a calendar displayed
on her cubicle wall that contains pin-up type pictures. She does not believe
that it is a problem because it is in her own cubicle and not in a common
area. I have to work with her on a daily basis and I find it offensive.
What should I do?
Answer: The preferred course of action is to clearly tell the co-worker
that you find the calendar offensive and ask her to remove it. MDS considers
a calendar with this kind of content inappropriate for our professional
work environment. If she does not remove the calendar you can escalate
the matter and ask a Manager or other company representative to take appropriate
action.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|RESPECT FOR PEOPLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | ENVIRONMENT,
HEALTH AND SAFETY
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------
|Standard: We will operate our businesses in a safe and healthy
manner and we will respect the environment.

As embodied in our Core Purpose, MDS believes that the continued protection
of our personnel and the implementation of sound environmental practices
are crucial to accomplishing our strategic goals.In support of these beliefs MDS commits each one of us to:Provide and maintain facilities and operations where health and safety
is promoted and hazards are controlled.

Manage facilities and operations such that their potential impacts on the
environment are controlled and minimized.

Meet or exceed applicable environmental health and safety (EHS) legal requirements.

Provide appropriate EHS training and education for MDS employees.

Establish measurable EHS objectives and monitor progress towards their
achievement.

Integrate EHS management into every facet of our business.

Consider EHS performance in the selection of suppliers, contractors and
business partners.

Monitor and continuously improve EHS performance and our EHS management
system.
MDS is responsible to employees to create workplaces where EHS risks are
managed and hazards are controlled. MDS personnel are responsible for working
safely and within the requirements defined by local or company-wide EHS
programs.
Sound EHS management and performance is the responsibility of each and
every one of us at MDS. Individually and collectively we work together
to build exemplary programs and to achieve performance in EHS that serve
as a positive example for other organizations in countries where MDS operates.As MDS people we endeavour - every day - to make MDS a safe and healthy
place to work and continue to help protect the environment in the communities
where we operate.Additional Guidance:For more details on MDS' Environmental
Health and Safety Programs and Policies please see the EHS sectionon
LINK (under MDS' Department Information) and your specific Business Unit
EHS policies. Should you have any questions, you can contact your Business
Unit EHS resource or any of the EHS Leadership Team.
|RESPECT FOR PEOPLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | SALES
AND MARKETING PRACTICES
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------
|Standard: We will conduct sales and marketing activities in
accordance with MDS' Core Values, MDS policies and the law.

We must preserve MDS' reputation as a leading company whose products
and services are desired for their quality and value and whose people are
respected for their integrity and high performance. The long-term success
of MDS depends on our ability to build long-term trusting relationships
with our customers.When communicating with customers or potential customers we should always
honestly describe the features of MDS' products and services. All literature
and public statements should be true and we should not misstate facts or
create misleading impressions. Also, we should not unfairly criticize a
competitor's products or services. In addition, we should only use individual
and customer confidential information for the purposes that the information
was provided and, even then, only with their consent.Also, stricter and more specific rules generally apply when we are doing
business with government agencies, hospitals and their officials. Because
of the sensitive nature of these relationships, you should always talk
to your Manager before offering gifts or incentives of any nature to any
government, hospital or other public sector employees. While MDS observes
local business customs and market practices, we do not participate in any
corrupt practices. All employees and any agents or other individuals representing
MDS must follow the laws of the country in which they operate, applicable
Canadian or U.S. law (including the Foreign Corrupt Practices Act) and
these Practice Standards.We should not offer, make or authorize, any payment of money or anything
of value, directly or indirectly, to:Illegally influence judgment or conduct or ensure a desired outcome or
action of any individual, customer, company or company representative.

Win or retain business or influence any act or decision of any government
official, political party, candidate for political office or official of
a public international organization.

Gain an improper advantage.
Remember that MDS wins business by offering great products and services
at good value and that alone is enough to generate business. Any business
that needs to be won by providing unusual gifts or hospitality is business
that we do not want. MDS should turn down business if we must compromise
our Core Values to acquire it. 
Additional Guidance:If you have any questions about this Sales
and Marketing Practice, please speak to your Manager or Supervisor or a
member of the Legal Department.
|RESPECT FOR PEOPLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | FAIR
COMPETITION
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------
|Standard: We will uphold the ideals of free and competitive
enterprise.

MDS is committed to the ideals of free and competitive enterprise:Buyers of products and services should be able to select from a variety
of products and services at competitive prices.

There should be no artificial restraints such as price fixing or discrimination,
illegal monopolies, abuse of dominant position, exclusive dealing, refusal
to deal or tie-ins.
These principles apply to MDS operations worldwide. MDS competes in the
marketplace solely on the merits of its products and services, on the prices
that we charge and on the customer loyalty that we earn. Our goal is to
deal fairly with all customers, to retain them as customers and to attract
new customers because we provide products and services that people want
at prices they find attractive. Customers who are also our competitors
must be treated fairly and not be disadvantaged. We should not discriminate
between the level of service we provide our customers and the service we
provide our competition and their customers.
Antitrust and competition laws are technical and vary from country to
country. We should avoid situations that may violate the principles of
fair competition, as well as situations that violate the law. Here are
some general guidelines:Do not discuss the following subjects with competitors:Pricing or pricing policies

Lease rates

Bids on contracts

Contracts

Promotions

Costs

Profits

Terms or conditions of sale

Royalties

Warranties

Customer Information

Territorial Markets

Inventories

Production capacities or plans

Distribution or selling strategies

MDS is free to select its own business partners. However, cancellations
and refusals to sell could raise fair competition issues. Consult with
a member of the Legal Department and appropriate business management before
starting or ending a relationship, or refusing to do business with any
customer, prospective customer, business partner or prospective business
partner.

Involvement with trade associations must be undertaken with care because
of the potential for activity, which might be in breach of relevant competition
laws.

Purchases from a supplier should not be dependent on the supplier's agreement
to purchase or use MDS products or services.
|Additional Guidance:Please
consult with your Manager or Supervisor or a member of the Legal Department
to evaluate situations not covered by these guidelines.
Questions: If I do not talk about specific price levels,
can I agree with a competitor not to engage in a price war?
Answer: No. Any agreement between competitors that directly relates
to the prices they charge is a violation of fair competition laws, regardless
of whether specific prices are a part of the agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|RESPECT FOR PEOPLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | COMPETITIVE
INFORMATION
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------
|Standard: We will not collect information on our competitors
through inappropriate means.

Information is valuable in any competitive business and it is useful
to us to learn more about our competitors, suppliers and customers. But,
we must be ethical about how we acquire that information.When collecting information our actions must be honest and fair and
within the law. Do not request or use information that violates laws regulating:Fair competition

Antitrust policies

Proprietary information and data

Confidential relationships between employees and employers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Question:My partner has a job at a local printing company.
One of his or her jobs was to print pricing sheets for a competitor of
MDS and he or she found some discarded copies in the trash. It was given
to me. I would like to give this information to my Manager at MDS to use.
Is there a problem with this?
Answer: Yes there is. You have come into the possession of the competitor's
pricing information as a result of your partner's employment with the printing
company. There is nothing to indicate that the competitor has made the
information public or does not wish to maintain the confidentiality of
the information. The most probable purpose for providing the information
to your Manager is to influence MDS pricing based on the competitive pricing
information. This kind of conduct should be avoided.Question: When interviewing people who have worked or are
working for a competing company, is it right to take this opportunity to
"pump them" for inside information that MDS would find useful?Answer:"Pumping" the new employee or a potential employee
for information about our competitor is NOT consistent with our Practice
Standards and is not supported by MDS as an approved practice.
|RESPECT FOR PEOPLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ACCURACY
OF RECORDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Standard: We will reflect our businesses accurately in our records.

Accurate business records are important because they are used for decision-making
and strategic planning. Business records also form the basis for earnings
statements, reports to shareholders and reports to governments.Use good judgment and common sense when preparing any company report.
Report facts accurately, honestly and objectively.As a public company, MDS is required to follow strict accounting principles
and standards, to report financial information accurately and completely,
and to have appropriate internal controls and processes to ensure that
accounting and financial reporting complies with the law. All MDS employees
must comply with these requirements and do what is needed to help MDS,
as a company, comply. As a result, take special care with financial reports
to ensure that they are accurate in all material respects and that they
conform with generally accepted accounting principles. Do not make false
entries or attempt to hide or fail to record any funds, assets or transactions.Violations of laws associated with accounting and financial practices
can result in fines, penalties and imprisonment, and they can lead to a
loss of public faith in a company. If you become aware of any action
related to accounting or financial practices or records that you believe
may be improper or inaccurate, you must immediately notify the company.This
can be done through any of the channels identified at the beginning of
these Global Business Practice Standards on page 5.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Question:
I do not have the time to check all of the invoices and expense reports
that come across my desk. Surely, it is the responsibility of the individual
who prepared the invoices or reports or the employee who submitted them
to me to make sure that they are correct. Am I right in my assumption?
Answer: No. Each of us is responsible for making sure that all reports,
invoices etc. are accurate and filled out correctly. If you are approving
an invoice or expense reports, you are responsible for its accuracy.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|INTEGRITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | COMPLIANCE
WITH LAWS
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------
|Standard: We will meet or exceed all applicable laws and regulations
in the countries in which we operate.

Many of our businesses are subject to extensive governmental regulation
throughout the world. Consistent with our Core Values, it is the policy
of MDS to meet or exceed the laws in each of the countries in which we
do business.It is the responsibility of all employees to be familiar with the laws
and regulations that relate to our business and to comply with them. The
Legal, Quality Assurance, Compliance, Environmental Health and Safety,
Risk Management, Privacy and other departments conduct periodic programs
to help MDS companies assess whether they comply with applicable laws and
regulations and to take corrective action as required.Additional Guidance:The Legal Department, or any of these departments,
are available to you for this purpose. However, it is the responsibility
of local management to ensure compliance with applicable laws and regulations.
|INTEGRITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | DISCLOSURE
OF INFORMATION TO MEDIA & INVESTORS                                                                                                                                                                                                                                                               
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Standard: We will protect the company's reputation by allowing
the company's designated spokespeople to deal with inquiries from the media
or investors.

What is said or written about the company impacts on MDS' reputation.
We place great importance on maintaining effective relationships with the
news media and investment community. To be consistent with our beliefs
and to maintain the company's credibility, information should be given
to our audiences in a timely, accurate, and non-discriminating manner.As such, ALL communications with the media, investors, analysts or other
interested parties is to be handled or coordinated by the company's Vice-President
Corporate Marketing and Communications and the Vice-President, Investor
Relations.Additional Guidance:For more details on what the company policy
is on dealing with the media or the investment community please refer to
the MDS Disclosure Policy, which is located in the Legal section
on LINK (under MDS' Department Information)..
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Question:
I received a call from a reporter who is looking for information about
the company that is within the scope of my job. What should I do?
Answer: The prudent course of action in this case is to redirect
the reporter to the office of the Vice-President, Corporate Marketing and
Communications.
|INTEGRITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | INSIDER
TRADING
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------
|Standard: We will not trade MDS shares when in possession of
"material" non-public information.

MDS encourages its employees to invest in the company as an excellent
way to align the interests of employees with the interests of our shareholders.When buying or selling company shares, all employees should be mindful
of the legal and policy limitations on trading.What Are the Limitations
on Trading?As MDS employees, we may have information about MDS businesses that
other investors do not have. This knowledge may create an unfair advantage
if we buy or sell MDS shares. Therefore, if you are in possession of "material
non-public information", you should not buy or sell MDS shares or otherwise
use the information for personal gain. This "material non-public information"
should be treated as confidential and should not be shared with anyone
else. These insider-trading restrictions also may apply to the shares of
companies negotiating, competing, doing business or seeking to do business
with MDS. These requirements apply to all MDS employees regardless of your
position.What is "Material Non-Public
Information""Material" information is any news or fact that a reasonable investor
could consider important in deciding whether to buy, sell or hold the shares
of a company. The "materiality" of the information must be viewed in light
of the impact the information could have on the company as a whole. While
it may be difficult under this definition to determine whether any particular
information is material, there are various categories of information that
are particularly sensitive and, as a general rule, should always be considered
material. Examples of such information include, but are not limited to:Financial Results

Projections of future earnings or losses

News of a pending or proposed reorganization or amalgamation

News of an acquisition or divestiture of a significant business division
or subsidiaryGain or loss of a substantial customer or supplier or contract

Changes in dividend policy

New Product announcements of a significant nature

Stock splits

New equity or debt offeringsMajor changes in senior management
Either positive or negative information may be material.
|"Non-Public" information is information
that has not been previously disclosed to the general public and is otherwise
not available to the general public. Information may be disseminated to
the public by news release, in the company's financial statements or annual
report, or by some other means that results in wide dissemination of the
information to the general public.
Additional Requirements
for "Insiders"The people who are most likely to be in receipt of "material non-public
information" including the MDS Board of Directors, Executive Officers and
certain other corporate employees are also required to comply with the
company's Insider Trading Policy. In essence, the policy prohibits
the trading in MDS shares during those periods of time where "material
non-public information" is most likely to be circulating.Additional Guidance:The full details of the policy are located
in the Legal sectionon LINK (under MDS' Department Information).Be Thoughtful When You Are
Trading MDS SharesEach insider and employee of MDS has the individual responsibility to
comply with the requirements outlined above and applicable securities laws,
regardless of whether the company has recommended a trading window. So
please use appropriate judgment for any trade in the company's shares.
Please note that in addition to any impact it may have on your job, if
you contravene these rules you may be subject to potential fines or criminal
prosecution under securities laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Question:I
was at a meeting where someone from the finance department mentioned that
MDS would be announcing earnings results that are significantly better
than the market is expecting. Can I buy MDS shares?
Answer: No.Question: Our business unit has just decided to award a large
supply contract to a small publicly traded supplier. Can I buy shares in
that supplier?Answer: No. Not until the deal is announced.Question: Can I advise family members or friends so they can buy
shares?Answer: No. This is considered tipping and is a violation of securities
laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Additional Guidance:If you have any questions at
all about the trading of MDS shares please contact MDS' General Counsel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|INTEGRITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | POLITICAL AND GOVERNMENT ACTIVITIES                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Standard: We will not seek to influence any political process
or governmental process in an inappropriate manner.

Political ActivitiesMDS encourages employees to be involved personally in political affairs
by voting, volunteering time or contributing money to candidates of your
own choosing. These decisions and choices are intensely personal and so
any donation of time, money or other resources must also be personal. Do
not give the impression that you are speaking on behalf or representing
MDS while personally involved in the political process.Volunteer work for political campaigns must not be done on company time
and MDS funds or assets must not be contributed to any political party,
candidate or campaign without the appropriate approval. Similarly, the
MDS name should not be used in conjunction with any political issue.Government Relations and LobbyingMDS will deal with all government agencies in a direct, open and honest
manner.Any contact with government personnel for the purpose of influencing
legislation or rule-making, including such activity in connection with
marketing or procurement matters, is considered lobbying. Some laws also
define lobbying even more broadly to include our normal marketing activities.
You are responsible for knowing and adhering to all the relevant lobbying
laws and associated gift laws, if applicable, and for compliance with all
reporting requirements.You should obtain the prior approval of the Legal Department [or other
appropriate department] to lobby or authorize anyone else (for example,
a consultant or agent) to lobby on MDS' behalf, except when lobbying involves
only normal marketing activities and not influencing legislation or rule-making.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Question:Several
of my co-workers and I strongly support a certain political candidate.
May we work together to support this candidate?
Answer: Of course. MDS encourages participation in the political
process. However, you may not use company funds, equipment or materials
to support the candidate. And please do not engage in political activities
while you are on the job.
|INTEGRITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



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PLEDGE
OF THE MDS BOARD OF DIRECTORS



|Each Member of the MDS Inc. Board of Directors has signed the MDS Personal
Pledge acknowledging their shared responsibility for maintaining the Company's
reputation of integrity by carrying out their duties and responsibilities
as directors in a manner consistent with the Company's Global Business
Practice Standards.
As Members of the Board of Directors of MDS, we acknowledge having received
and read the MDS Global Business Practice Standards and agree to carry
out our duties and responsibilities in accordance with such Standards.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (signed)
Wilfred G. LewittChairman | 
| | ---------------------------------- | 



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PLEDGE
OF THE MDS EXECUTIVE MANAGEMENT TEAM

|Each member of the MDS Inc. Executive Management Team has signed the
MDS Personal Pledge acknowledging their shared responsibility for maintaining
the Company's reputation of integrity by carrying out their duties and
responsibilities in a manner consistent with the Company's Global Business
Practice Standards.
As employees and members of the Executive Management Team, we acknowledge
having received and read the MDS Global Business Practice Standards and
agree to carry out our duties and responsibilities in accordance with such
Standards.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On behalf of the MDS Executive Management Team

| | (signed)
John A. RogersPresident and CEO | 
| | ---------------------------------------- | 

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MDS
PERSONAL PLEDGE (Employee)

|As employees of MDS or its subsidiaries or affiliates, we all share
the responsibility for maintaining the Company's reputation of integrity.
Such responsibility includes carrying out our day to day activities in
a manner consistent with certain business practice standards developed
and adopted by the Company and founded in our core values of mutual trust,
genuine concern and respect for people, integrity and commitment to excellence.
Accordingly, I acknowledge that I have received, read the MDS Global
Business Practice Standards and understand that MDS expects me to carry
out my duties and responsibilities in accordance with such Standards.Employee Signature:Date:Employee Name:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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MDS
PERSONAL PLEDGE (Director)

|As Directors of MDS, we share the responsibility for maintaining the
Company's reputation of integrity. Such responsibility includes carrying
out our duties and responsibilities as Directors in a manner consistent
with certain business practice standards developed and adopted by the Company
and founded in the Company's core values of mutual trust, genuine concern
and respect for people, integrity and commitment to excellence.
Accordingly, I acknowledge that I have received and read the MDS Global
Business Practice Standards and agree to carry out my duties and responsibilities
as a Director in accordance with such Standards.Director Signature:Date:Director Name:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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MDS
PERSONAL PLEDGE (Executive Management Team)

|As employees of MDS or its subsidiaries and as members of the Executive
Management Team, we share the responsibility for maintaining the Company's
reputation of integrity. Such responsibility includes carrying out our
duties and responsibilities as employees in a manner consistent with certain
business practice standards developed and adopted by the Company and founded
in the Company's core values of mutual trust, genuine concern and respect
for people, integrity and commitment to excellence.
Accordingly, I acknowledge that I have received and read the MDS Global
Business Practice Standards and agree to carry out my duties and responsibilities
in accordance with such Standards.Employee Signature:Date:Employee Name:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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At MDS, we . . .

Believe that relationships and partnerships drive our
growth

Work toward a common goal

Commit to meeting our customers needs

Strive to balance the short term and the long term

Encourage innovation and entrepreneurship

Have high standards of quality and performance

Listen and communicate with each other in clear and
honest ways

Keep work and life in perspective

In the end it's the people
that we help that matter most . . .