News

03/25/2002
Press Release

Isonics Corporation Closes $1 Million Private Placement
Monday March 25, 8:43 am Eastern Time Press Release SOURCE: Isonics Corporation GOLDEN, Colo.--(BUSINESS WIRE)--March 25, 2002--Isonics Corporation (Nasdaq:ISON - news) a leader in the development of isotopically engineered semiconductor materials and a supplier of silicon-on-insulator wafers and isotopes for life sciences and health care applications, has announced that the company has closed a $1 million private placement with a small number of accredited investors. ``This $1 million private placement will allow Isonics to continue its plan which we believe will allow us to achieve profitability by our quarter ending January 31, 2003,'' said James E. Alexander, Chairman & CEO for Isonics Corporation. ``Unless we decide to undertake an acquisition, it is unlikely we will need to obtain further financing this year. With this out of the way, we can focus on growing our life sciences business, continue to penetrate the silicon-on-insulator wafer market, and respond to the increasing level of customer interest we are seeing for high thermal conductivity silicon-28.'' Isonics has recently become a supplier of silicon-on- insulator wafers (SOI) via a previously announced manufacturing alliance utilizing technology obtained from Silicon Evolution, Inc. in 2001. SOI wafers are the fastest growing segment of the $6 to 7 billion silicon wafer market. Silicon-28 is a highly purified form of silicon which has greater ability to dissipate heat than normal silicon used to make virtually all semiconductor devices manufactured today. Isonics has the exclusive rights to key patents covering silicon-28 and has been providing evaluation wafers to major semiconductor manufacturers. Isonics believes that the combination of silicon-28 and the SOI wafer structure will be quite desirable in certain product applications. This placement was structured as 4% convertible notes and warrants. The notes are convertible into registered Isonics common stock at the option of either the note holder or Isonics at $1.00 per share. Isonics may also repay the principle in cash plus accrued interest at its option. The noteholders were issued 1 five-year warrant exercisable at $1.25 for a share of common stock for every $5 in principle loaned. The warrants may only be exercised for cash. Neither the notes nor the warrants provide for any re-set in conversion or exercise prices (except for normal dilution adjustment) unless Isonics were to sell common stock at less than $1.00 per share in the six months following closing of this placement. Further details will be provided in the Form 8-K to be filed with the SEC. ABOUT ISONICS CORPORATION - Isonics is a world leader in isotopically engineered materials and produces isotopically pure silicon-28 chemicals and wafers and silicon-on- insulator wafers (SOI) for the semiconductor industry. Isonics also markets and sells stable isotopes for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and oxygen-18 for positron emission tomography (PET) imaging. Stable isotopes can be thought of as ultra pure materials. For additional information visit http://www.isonics.com. Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein, and which may result in the parties being unable or unwilling to complete the transaction described herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-KSB for the year ended April 30, 2001 as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission. ------------------------------------------------------------ -------------------- Contact: Isonics Corporation, Golden Dr. Stephen J. Burden, 303/279-7900 sburden@isonics.com or Investor Relations Services Inc., New Smyrna Beach, Fla. Gary Frank, 386/409-0200 ison@invrel.net