Applied Biosystems/MDS Sciex Accelerates Drug Discovery with New Pharmaceutical Application.

FOSTER CITY, Calif. -- New LightSight(TM) Software for Metabolite Identification Increases the Effectiveness of Pharmaceutical Companies' Selection of Drug Candidates for Development

Applied Biosystems (NYSE: ABI), an Applera Corporation business, and its joint venture partner, MDS Sciex, a division of MDS Inc. (NYSE:MDZ, TSX:MDS), today announced the global availability of a new drug discovery application that enables pharmaceutical companies and contract research organizations to more quickly and accurately screen drug candidates. The new application - LightSight(TM) Software for Metabolite Identification - improves the productivity and efficiency of drug discovery scientists analyzing new compounds to treat human disease.

Drugs are usually metabolized by the body as a method to eliminate the drug. Identifying drug metabolites, which are the intermediates and products of metabolism, is key to the drug discovery process because the metabolites formed could be potentially toxic or could be more efficacious than the drug itself. Applied Biosystems/MDS SCIEX's metabolite ID solution enables drug discovery scientists to more quickly examine thousands of drug candidates and quickly determine those that fail to meet the requirements for further development. Companies can then focus valuable resources with greater accuracy on the most promising drug candidates.

A high level of accuracy in metabolite ID is critical, as research by the Pharmaceutical Research and Manufacturers of America indicates that on average, only five out of 5,000 drug candidates make it to clinical trial testing. Although generally costing millions of dollars to develop, only one drug out of those five is expected to eventually be approved by the U.S. Food and Drug Administration and international regulatory agencies.

More than 100 pharmaceutical scientists from 35 companies worldwide provided input and feedback for the development of the LightSight(TM) Software, resulting in a comprehensive metabolite ID package attuned to the way metabolite ID labs operate. One such scientist is Sandeep Pusalkar, a scientist at Millennium Pharmaceuticals, Inc. in Cambridge, MA. Millennium is one of the world's top biopharmaceutical firms, focused on targeting new drugs with the highest potential to fit its corporate strategies for personalized medicine.

"Metabolite ID is a tedious, time-consuming process, and a real bottleneck in our lab," said Pusalkar. "LightSight(TM) Software can help us decide which targeted drugs could be most effective by giving us greater confidence in our metabolite data earlier in the discovery cycle. Every additional day it takes to move a compound forward in that process has costly ramifications, so this will be a welcome advantage."

This new pharmaceutical application can be employed with the widely-used 4000 Q TRAP(R) mass spectrometer, as well as other triple quadrupole and hybrid linear ion trap mass spectrometers from Applied Biosystems/MDS SCIEX. Because the application is designed to be workflow-based for the Metabolite ID lab, it allows users to streamline their work, simplifying the process and allowing for a larger number of experiments to be performed without an increase in resources or training. Online documentation explains the science behind the software, while video animations guide the user through the key software functionality.

"Applied Biosystems/MDS SCIEX understands the complexity of picking the best targets for new drugs," said Laura Lauman, division president, Proteomics & Small Molecule Division, Applied Biosystems. "That's why our scientists continue to drive innovations in mass spectrometry technology to enable new and exciting discoveries in science and medicine."

Known for its proven track record in advanced pharmaceutical development tools, Applied Biosystems/MDS SCIEX is demonstrating its mass spectrometry platforms for various innovative solutions, including this metabolite identification application, at the 54th annual American Society of Mass Spectrometry (ASMS) conference in Seattle this week.

"The Applied Biosystems/MDS SCIEX joint venture delivers innovations that advance the work of life scientists," said Andy Boorn, president of MDS Sciex. "LightSight(TM) Software contributes to pharmaceutical companies' initiatives to improve the process of drug discovery and development."

More information about Applied Biosystems' drug discovery solutions can also be found at www.appliedbiosystems.com; click on "Drug Discovery."

About Applera Corporation and Applied Biosystems

Applera Corporation consists of two operating groups. The Applied Biosystems Group serves the life science industry and research community by developing and marketing instrument-based systems, consumables, software, and services. Customers use these tools to analyze nucleic acids (DNA and RNA), small molecules, and proteins to make scientific discoveries and develop new pharmaceuticals. Applied Biosystems' products also serve the needs of some markets outside of life science research, which we refer to as "applied markets," such as the fields of: human identity testing (forensic and paternity testing); biosecurity, which refers to products needed in response to the threat of biological terrorism and other malicious, accidental, and natural biological dangers; and quality and safety testing, for example in food and the environment. Applied Biosystems is headquartered in Foster City, CA, and reported sales of nearly $1.8 billion during fiscal 2005. The Celera Genomics Group uses proprietary genomics and proteomics discovery platforms to develop molecular diagnostic products and to identify and validate novel drug targets. Celera maintains a strategic alliance in molecular diagnostics with Abbott. In addition, Celera is developing new molecular diagnostic and pharmacogenomic assays outside of its alliance with Abbott. Therapeutic antibodies against Celera-discovered drug targets are being advanced through strategic partnerships. Information about Applera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at http://www.applera.com, or by telephoning 800.762.6923.

About MDS Sciex and MDS Inc.

MDS Sciex is the analytical instrumentation and technology solutions division of MDS Inc. MDS Inc. (TSX:MDS)(NYSE:MDZ) has more than 8,800 highly skilled people in 27 countries. It provides a diverse range of superior products and services to increase customers' speed, precision and productivity in the drug development and disease diagnosis processes. MDS is a global, values-driven life sciences company, recognized for its reliability and collaborative relationships that help create better outcomes in the treatment of disease. Find out more at www.mdsinc.com or by calling 1-800-MDS-7222, 24 hours a day.

Applied Biosystems Forward Looking Statements

Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "should," "expect," and "planned," among others. These forward-looking statements are based on Applera Corporation's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Applera Corporation notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These factors include but are not limited to: (1) rapidly changing technology and dependence on the development and customer acceptance of new products; (2) sales dependent on customers' capital spending policies and government-sponsored research; and (3) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Applera does not undertake any duty to update this information, including any forward-looking statements, unless required by law.

Applied Biosystems and Celera are registered trademarks and Applera is a trademark of Applera Corporation or its subsidiaries in the US and/or certain other countries. Q TRAP is a registered trademark and LightSight is a trademark of Applied Biosystems/MDS SCIEX, a joint venture between Applera Corporation and MDS Inc. Copyright(C) 2006. Applera Corporation and MDS Inc. All rights reserved.