MDS Proteomics reorganizes, changes name

Canada's MDS Proteomics says that it has completed its financialreorganization, substantially in accordance with its previous announcement of June 1.

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, which provides high-value, early-stage drug development capabilities to its pharmaceutical and biotechnology 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 areas of protein identification and analysis, lead optimization and biomarkers discovery.