MDS Inc. chooses IBM and Oracle to integrate global operations

Oracle E-Business Suite to replace multiple systems

Markham & Mississauga, ON, December 16, 2003 � IBM Canada Ltd. and Oracle Corporation Canada Inc. announced today that MDS Inc. has chosen IBM Business Consulting Services and the Oracle E-Business Suite to integrate multiple IT systems around the world. The new system will enable MDS to standardize its Human Resources, Finance, Supply Chain Management, Global Contract Management, Manufacturing and Sales Order Management systems across all lines of businesses, providing a growth infrastructure which improves efficiency and ensures faster integration of acquisitions.

Under the agreement, IBM Business Consulting Services will lead and manage the implementation of the Oracle E-Business Suite leveraging both IBM’s global practice in this area and certain Oracle Consulting resources. MDS will now have a common business platform that leverages a shared services model across the whole company, providing synergy, operational efficiencies and an ideal environment for future growth.

�As MDS continues to grow, we need a solution that will seamlessly integrate newly acquired companies into the global enterprise. With their joint expertise in life sciences, IBM and Oracle provided the right combination of technology and vision to help us achieve our goals,� said Alan Torrie, executive vice-president, Global Markets and Technology for MDS Inc.

The new Oracle system will enable MDS to quickly react to opportunities in the marketplace. �Oracle�s solution is a key component as we enhance our global business processes, allowing us to focus on maintaining our leadership with the health and life sciences industry,� added Torrie.

The IBM Business Consulting Services contract is an extension of the recently announced seven-year, CDN $265 million strategic outsourcing deal between IBM and MDS. It includes the global outsourcing of desktops, servers, helpdesk and wide and local area networks.

“We are playing a key role in MDS’ growth strategy,” said Chris Alford, Canadian lead for IBM Business Consulting Services Canada. “IBM’s recent strategic outsourcing agreement gives MDS the IT infrastructure to support evolving business needs. Now, Business Consulting Services is bringing its deep life sciences industry expertise to bear. The resulting shared services model will allow MDS to benefit from substantial operational efficiencies and create an ideal environment for future growth. IBM’s global reach and resources and our industry insight have made us a key collaborator for MDS as they continue to be an industry leader.”

“IBM Business Consulting Services and Oracle are working together to help MDS meet its unique needs as a health and life sciences organisation,� says Peter MacPherson, Regional Director, Application Sales, Oracle Canada. �The Oracle E-Business Suite, implemented with IBM�s industry expertise, will enable MDS to deliver real-time, accurate information to managers for better decision-making, better cooperation and greater productivity within the company in the years to come.”

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