Dividend Information

Dividend Payments
On January 20, 2011, Nordion announced the introduction of a dividend. The initial quarterly dividend of US$0.10 per share will be paid on April 1, 2011, to shareholders of record on March 17, 2011. Nordion’s Board of Directors will review the dividend policy from time to time, taking into consideration the Company’s cash flow, earnings, working capital requirements, financial position and other relevant factors.

Eligible Dividend Designation
All dividends paid or credited by Nordion to Canadian residents are designated as eligible dividends in accordance with the Canadian Income Tax Act. Dividends paid or credited to non-residents of Canada are subject to a 25% withholding tax unless reduced by treaty. Under the current Canada–U.S. tax treaty, the withholding tax rate on dividends is reduced to 15%. Taxation of dividends paid to U.S. residents is governed by the Internal Revenue Code. Please consult a tax advisor to determine any tax consequences of receiving dividends from Nordion.

Normal Course Issuer Bid
Nordion has been authorized by the Toronto Stock Exchange (TSX) to purchase for cancellation up to 3,105,901 common shares of its 62,118,021 common shares outstanding as of January 24, 2012. The authorized number of shares for repurchase represents approximately 5% of its outstanding common shares. Annual purchases under the NCIB may begin on February 2, 2012 and will end no later than February 1, 2013. Subject to any block purchases made in accordance with the TSX, daily purchases will be limited to 9,804 common shares, which represent 25% of the average daily trading volume on the TSX over the six-month period between July 1, 2011 and December 31, 2011.

Nordion has entered into an automatic share purchase plan (ASPP) under which the Company’s broker, RBC Capital Markets, purchases shares in accordance with the policies of the applicable exchange that the common shares are purchased on and based on guidelines the Company provides the broker at the time the ASPP is established. The ASPP may be cancelled or modified only during periods in which the Company is not in possession of material non-disclosed information. Purchases will be made on the open market through the facilities of the TSX and the NYSE or other alternative trading systems, if eligible, in accordance with their respective rules.

Nordion believes that, depending on the trading price of its shares and other factors, the purchase of some of the Company’s common shares under an NCIB for cancellation is an appropriate use of cash and in the best interest of Nordion and its shareholders.