Corporate News

Cavico Corp. (NASDAQ: CAVO) today announced that it signed an additional construction contract at the Hua Na Hydropower plant with Lilama, a state-owned company owned and operated by the Vietnamese Ministry of Construction. The revenue for this additional contract is expected to be $11.9 million. Cavico signed the initial contract for $4.9 million with Lilama for construction work at this project in April 2009.

According to the term of this new agreement, Cavico’s majority-owned subsidiary, Cavico Power & Resource, will be responsible for the construction of the sub headrace tunnel No. 2, a water diversion tunnel and a surge sharp tank. The Hua Na Hydropower plant, a twin turbine plant which requires a capital investment of approximately $250 million is located on a 20.6 square kilometer property in the Dong Van village of the Nghe An province near the Chu River. Once completed, the hydropower plant is expected to generate approximately 180 megawatts of power and will supply 706 million kilowatt hours annually. The plant will help meet a material electricity demand in Vietnam and significantly alleviate shortages currently experienced in the Central provinces, which includes the Nghe An, Ha Tinh and surrounding provinces. Cavico expects to complete this project in five years.

“The sub headrace tunnel, diversion tunnel and surge sharp tank are all critical components of a hydropower plant,” commented Mr. Hai Thanh Tran, vice president of Cavico. “Once again, we are pleased that this client has entrusted us with the most critical parts of the overall project. This additional work builds on the successful completion of Cavico’s initial scope of work, the construction a diversion tunnel and coffer dam, which validates Cavico’s strength and capabilities in the field of underground construction. We look forward to continuing our close working relationship with the project owner and other contractors at the plant to complete this project on time and in a quality manner.”

YM BioSciences Inc. (AMEX: YMI), announced that it has been granted two additional patents in the US for AeroLEF, the Company's proprietary, inhaled-delivery composition of free and liposome-encapsulated fentanyl in development for the treatment of moderate to severe acute pain. US patent numbers 7,648,981 and 7,648,982 extend the life of YM's AeroLEF patent estate in the US to 2024. The Company also announced that AeroLEF's patent estate has expanded to include other territories with the issuance of European patent number 1,603,533 and several patent allowances in China, India, Mexico and other territories.

"These patents strengthen and extend the patent protection for AeroLEF in the US, and also expand the global market for this unique and potentially first in class product," said David Allan, CEO of YM BioSciences. "The scientific pedigree and unique advantages of this product have been established and its safety and efficacy have been demonstrated in numerous clinical trials. AeroLEF has met all endpoints in each of its trials including a randomized Phase II trial and is currently being prepared for late-stage development internationally."

US patent number 7,648,981 protects the self-medicating method of pain management in which the pain sufferer inhales a formulation comprising free and liposomal fentanyl in a dose ratio that provides rapid onset and sustained relief from pain without attendant toxicity. Also claimed is a breath-actuated device for delivering the fentanyl formulation.

US patent number 7,648,982 similarly covers a pain relief method and device that delivers fentanyl formulations defined according to the particle sizes and unit doses effective to manage pain by the route of pulmonary delivery. European patent number 1,603,533 and other recently allowed patents' coverage is similar in scope to the recently issued US patents.

AeroLEF's current patent estate in the US consists of three issued patents and two pending patents.

LaBarge, Inc. (AMEX: LB) has received contracts valued at $1 million from BAE Systems to continue to produce ruggedized circuit card assemblies for the AN/AAR-57 Common Missile Warning System (CMWS).

The CMWS defends military helicopters, and transport and tactical aircraft from heat-seeking and radio frequency missiles by detecting and warning crews of missile threats, and cueing countermeasures. The CMWS is deployed on a variety of military aircraft for the U.S. Army as well as several military aircraft for the United Kingdom.

Production on the contracts is expected to begin in April 2010 and continue through March 2011 at LaBarge's Tulsa, Okla., facility.

Rentrak Corporation (NASDAQ: RENT) today announced an agreement with WCMH, a Media General NBC affiliate, to utilize Rentrak's StationView Essentials system for the station in Columbus, Ohio.

Continuing the momentum Rentrak has established with local stations for its Station View Essentials service, WCMH joins Lin TV and Sinclair Broadcast Group for measurement and software services for the Columbus, Ohio, market from the largest commercially available database of digital set-top-devices. Rentrak will be providing WCMH with new metrics, including the company's unique "Stickiness Index," which measures viewer involvement, in order to illuminate the value proposition local broadcaster's have in terms of reach and hold with their television viewers.

"This cutting edge technology from Rentrak will enhance our current measuring capabilities and provide a greater insight for our advertisers with larger samples from tens of thousands of digital set-top boxes. Our clients and the NBC4 team will be better able to determine our viewership among the diverse communities of the Greater Columbus area," said Dan Bradley, Vice President and General Manager of WCMH.

"As the Columbus, Ohio, market expands, Rentrak is excited to work with WCMH to assist them in better quantifying the value of their station to local agencies and direct advertisers via our set-top-box currency," said Carol Hinnant, Rentrak's Senior Vice President of Business Development, Advanced Media. "Rentrak has a long history of involving our clients in our product road map to ensure our service is flexible and provides the depth of data for clients to improve their delivery and maximize their revenues."

MDS Inc. (NYSE: MDZ) today announced that it has signed agreements to divest its remaining MDS Pharma Services Early Stage business, which provides Discovery through Phase IIa clinical trial services to biotechnology and pharmaceutical companies, for $45 million and certain minority equity interests. The $45 million purchase price includes a five-year, $25 million note and $20 million in cash that will be adjusted for working capital and other items; after currently projected adjustments, the $20 million cash payment is estimated to result in net cash proceeds of approximately $7 million.

Upon the close of the sale, MDS will have completed its repositioning strategy and will be focused on building its MDS Nordion business, which has leadership positions in medical imaging and radiotherapeutics, and sterilization technologies.

"The agreements to divest the MDS Pharma Services business are the last major milestone in the repositioning of the Company," said Steve West, Chief Executive Officer of MDS Inc. "While the sale agreements have been struck in a difficult environment, we believe we are doing what's necessary to allow us to focus on building MDS Nordion to create shareholder value over the long term."

Under the terms of the agreements, MDS will divest its Discovery and Pre-Clinical operations in Bothell, Washington; Lyon, France; and Taipei, Taiwan, to Ricerca Biosciences LLC, a leading provider of early-stage contract research organization (CRO) services.

"We are evolving to meet the needs of our clients. This expansion, combined with our existing infrastructure, puts us on the forefront of providing comprehensive discovery and preclinical services from Intellectual Property to Investigational New Drugs to the biopharmaceutical industry," said Ian Lennox, Chairman and Chief Executive Officer, Ricerca Biosciences.

The Early Stage Development operations, which consist of Phase I clinics and bioanalytical labs, and the Company's Development and Regulatory Services consultancy, will be sold to a new corporation primarily owned by Bain Capital Ventures and SV Life Sciences, two leading private investment firms with established holdings in life sciences, including Ricerca. Bain Capital Ventures and SV Life Sciences both have long and successful track records of building market-leading companies in healthcare and the life sciences sector.

"We believe that the new corporation's combination of talented people, scientific excellence, and world-class facilities provides a strong foundation for future growth of the business, and we look forward to continuing to provide our clients with leading early-stage clinical development services," said Susan Thornton, Ph.D., Chief Executive Officer of the new corporation.

Exclusions from the Transactions

The divestiture of the MDS Pharma Services Early Stage business does not include the Early Stage Development facility in Montreal, Canada, which will be closed. The decommissioning, through which approximately 225 jobs will be eliminated, will take place in stages over the next 12 months and is expected to be completed by the end of February 2011. In addition, the sale does not include MDS Pharma Services headquarters in King of Prussia, Pennsylvania. While MDS expects the majority of MDS Pharma Services employees to move to Ricerca or the new corporation, the Company anticipates that approximately 50 people will not be part of the deal.

Operating costs during the wind-down period are currently anticipated to be in the range of $7 million to $12 million. The cost of employee severance is estimated to be in the range of $18 million to $21 million, and MDS has retained pension obligations of approximately $3 million.

Obligations Retained

Following the sale, MDS expects to retain certain liabilities and obligations related to the MDS Pharma Services Early Stage business, including litigation claims and other costs associated with the U.S. Food and Drug Administration's review of the Company's bioanalytical operations in Montreal, and is subject to other risks and uncertainties as outlined in the Company's 2009 Annual Information Form. MDS will also retain lease obligations for the Montreal facility, the King of Prussia office and for one office building in Bothell, Washington. The cost of future lease payments is estimated at $9 million. Under certain circumstances, MDS may be required to assume additional liabilities that could result in future cash payments.

Cash and Distributions

Following the divestiture of the MDS Pharma Services Early Stage business and the intended $400 million to $450 million share buyback, resulting from the previously announced sale of MDS Analytical Technologies, MDS currently expects to initially hold between $85 million and $135 million of cash to support ongoing operations and future obligations of the Company. Beyond the estimated cash balance of between $85 million and $135 million, the Company intends to hold additional cash to fund unpaid transaction and restructuring costs associated with the sale of MDS Pharma Services and MDS Analytical Technologies. Additional details on these expected transaction and restructuring costs are available in MDS's 2009 Management's Discussion and Analysis (MD&A).

MDS's interest in the new corporation consists solely of the $25 million note and a 15% equity interest. The interest on the five-year note is 4% per annum, and the note would be repayable at the end of its five-year term or upon a future sale of the business. The note is expected to be secured by certain assets of the new corporation, which would be subordinated by the new corporation's senior credit facility.

Closing Conditions, Time Lines

The transaction is expected to close within two months, and is subject to customary approvals and closing conditions, including certain regulatory approvals and compliance with labor laws related to an operation in France.

MDS Special Committee

The Company's Special Committee of the Board of Directors, which was established in February 2009 to review strategic alternatives to improve shareholder value, is expected to be disbanded following the completion of the sale of MDS Pharma Services.