MDS Proteomics Announces Completion of Financial Reorganization and Name Change to Protana Inc. TORONTO, July 29 /PRNewswire-FirstCall/ -- MDS Proteomics today announced that it has completed its financial reorganization, substantially in accordance with its announcement of June 1, 2004. The reorganization was carried out pursuant to the Companies' Creditors Arrangement Act ("CCAA") and the Canada Business Corporations Act ("CBCA"). The company's CCAA Plan of Compromise and Arrangement has been unanimously approved by the company's affected creditors and such Plan, and the company's CBCA Arrangement and Reorganization, have been sanctioned by the Ontario Superior Court of Justice. The following has occurred in connection with the reorganization: - The operations of the company have been merged with those of OptiMol, previously 50% owned by MDS Proteomics, that provides high value early stage drug development capabilities to its pharmaceutical and biotech partners; - All existing funded debt has been converted to equity; - The accumulated tax losses of the company have been sold to MDS Inc. for $5 million; - The reorganized company has entered into a five year technology license agreement with a wholly-owned subsidiary of MDS Inc. for minimum guaranteed revenues of $10 million; and - The reorganized company will have a business model based upon the provision of services to third parties in the three areas of protein identification and analysis, lead optimization and biomarkers discovery. Following completion of the reorganization, the company will have cash on hand and committed cash of approximately $25 million. In addition, the reorganized company has negotiated a lease financing arrangement for $5 million that it anticipates closing shortly. Given the expected quarterly net cash burn rate of $2.5 - 3.0 million, the reorganized company is expected to have sufficient resources to achieve cash flow breakeven. In order to better reflect the new business model and the operational plan, the reorganized company has been named "Protana Inc.". This name reflects the fact that the reorganized company will have a much broader focus than proteomics based discovery research. Protana will be working in areas that encompass genomics, proteomics, clinical settings as well as lab services, and will span drug discovery to late stage work. "With the reorganization behind us, we can now focus on our new business model and the significant opportunities that this market holds," said Anil Amlani, Executive Vice-President. "We have the management, technology, expertise and, most importantly, the employees, that will allow us to offer our customers value added services and execute on our new business model." Forward-Looking Statements This document contains forward-looking statements. Some forward looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. The statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The company's actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, technology development issues, the competitive environment for the company's products, the degree of market penetration of the company's products, as well as other factors not contained herein. About Protana Inc. Protana offers an integrated platform of superior and ultra-sensitive technologies - protein identification, protein interaction mapping, differential analysis, phosphoprofiling, chemical proteomics, lead optimization and insilico drug design - that can be applied across the entire spectrum of drug discovery and development process. Protana's dynamic combination of world-class experts and sophisticated technology will ultimately provide the global health sciences community - and patients throughout the world - with leading-edge solutions for the diagnosis and treatment of disease. Protana is a private company. For more information on Protana, visit the company's website at http://www.protana.com/ DATASOURCE: MDS Proteomics Inc. CONTACT: Mr. Anil Amlani, Executive Vice-President, Protana Inc., (416) 646-6351 or

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