News
04/03/2002
Press Release
Isonics Corporation Receives Major Order for Oxygen-18 With Demand Rapidly
Increasing, Company is Positioned as a Worlds Leading Supplier for Tight Supply
of Isotope Used By Medical Sector
GOLDEN, Colo.--(BUSINESS WIRE)--April 3, 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 entered
into an agreement to supply Oxygen-18, a key raw material for Positron Emission
Tomography (PET), to a new customer, receiving a $750,000 first order from that
company. ``With an ever increasing capacity for Oxygen-18, Isonics, as the world's
second largest supplier of this isotope, is prepared to satisfy the increasing
demands of our existing customers, and is capable of supplying any new customers
as they come aboard,'' said Dan Grady, Vice President of Life Sciences for Isonics
Corporation. ``With the growing number of PET imaging procedures now being approved
for reimbursement by insurance companies, we are seeing a solid increase in
demand for our product. Based on long-term sales contracts, we expect our Oxygen-18
revenues to increase by about $2.5 million for the next fiscal year compared
to our present fiscal year ending this month,'' he concluded. Oxygen-18 represents
Isonics' single largest product line and is used in medical cyclotrons to produce
the primary radioisotope currently used in PET. Due to its ability to identify
and localize areas of high metabolic activity, PET has been demonstrated to
be one of the most powerful tools in the fight against many types of new and
recurrent cancers. The demand for Oxygen-18 continues to grow rapidly as the
number of approved clinical procedures increase and insurance reimbursement
treatment remains favorable. As the tight supply situation currently existing
is likely to persist for the next several years, Isonics will continue its aggressive
efforts aimed at quickly increasing its production capacity. 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 Oxygen-18 for Positron Emission
Tomography (PET) imaging. The company is also a leading supplier of several
radioactive isotopes used in medical imaging and therapy. 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, Baltimore Dr. Stephen J. Burden, 410/381-5254
sburden@isonics.com or Investor Relations Services Inc., New Smyrna Beach, Fla.
Gary Frank, 386/409-0200 ison@invrel.net