Untitled Document

Isonics Establishes Silicon-on-Insulator Wafer Fab

ISONICS establishes silicon-on-insulator wafer fab

Exhibits Strong Commitment to SOI Wafers

GOLDEN, Colorado – September 25, 2002 - Isonics Corporation (NASDAQ: ISON), a world leader in isotopically engineered materials, announced that is has established a silicon-on-insulator (SOI) wafer fabrication facility in Vancouver, Washington.

James Alexander, Isonics’ Chairman & CEO commented, “To exhibit our strong, long- term commitment to the SOI wafer business, we have established our own fabrication facility which includes all critical processes for the manufacture of high quality thick-film SOI wafers. Earlier this year, we entered the SOI wafer business through licensing of SOI technology and establishing a contract manufacturing and marketing relationship with Silicon Quest International to practice it. We have been successful at implementing certain of the technology and have produced and sold quality thick-film SOI wafers for a number of customers with various specifications. Designated Isonics Fab 1, this facility augments both the capacity and capability available to us at Silicon Quest. Fab 1 will allow us to fully utilize our intellectual property for SOI wafer manufacture and serve a larger number of customers with a wider range of technical requirements.”

Isonics is capable of producing 90,000 thick-film SOI wafers per year in 100-mm to 200-mm diameters. These wafers presently sell for between $150 and $350 each, depending on specification, size and quantity. According to a recent Gartner report, the SOI wafer market is expected to grow at a 47% compounded annual rate, exceeding 5.5 million equivalent 200-mm SOI wafers per year in 2007.

Anyone interested in obtaining thick-film SOI wafers are requested to contact Dr. Stephen J. Burden by calling (303) 279-7900 or by e-mail at soi@isonics.com.

ABOUT ISONICS CORPORATION
Isonics is a world leader in isotopically engineered materials and produces isotopically pure, high thermal conductivity silicon-28 chemicals and wafers 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. This high degree of purification provides enhanced properties as compared to natural materials. Additional information may be obtained at 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. 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, 2002 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.

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Contact: James E. Alexander 303-279- 7900