News

10/01/2002
Press Release

Isonics Corporation Receives $9M Order for Oxygen-18 With Demand Continuing to Grow, the Company is Positioned as a Leading Supplier of a Key Isotope Used By Medical Sector Tuesday October 1, 7:32 am ET
GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 1, 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 a multi- year agreement with Eastern Isotopes, Inc., a subsidiary of IBA, for at least $8.8 million, and up to $10.4 million, to supply Oxygen-18, a key raw material in the production of the primary radiopharmaceutical (FDG) for Positron Emission Tomography (PET). "We have worked closely with Eastern from the start of their PET efforts. In addition to their purchases of Oxygen- 18, Eastern has been a very effective partner in the Isonics Recycle Program, allowing us to more rapidly increase our production capacity. Eastern has grown dramatically in the intervening years, becoming one of the largest FDG suppliers in the world. We are excited to be entering this new phase of supply partnership with Eastern," said Dan Grady, Vice President of Life Sciences for Isonics Corporation. "With a steadily increasing capacity for Oxygen-18, Isonics, as the world's second largest supplier of this isotope, is prepared to satisfy the increasing demands of Eastern Isotopes and our other existing customers, and is capable of supplying new customers. 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 40 to 50% during this fiscal year compared to last year." "Over the past three-and-a-half years, Isonics has consistently demonstrated its ability to reliably deliver the highest quality Oxygen-18 enriched water combined with exceptionally responsive service," said Anwer Rizvi, Chief Executive Officer for Eastern Isotopes. "This key-product agreement is a very important element in support of our objective to seek aggressive and sustainable growth within our PET radiopharmaceutical business. We are very pleased to count Isonics as one of our critical supply partners." 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. As the number of approved clinical procedures increase and insurance reimbursement treatment remains favorable, the demand for Oxygen-18 is expected to continue to grow. To meet the needs of existing and future customers, Isonics will continue its efforts to quickly increase 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 www.isonics.com. About Eastern Isotopes Eastern Isotopes, Inc., a majority-owned subsidiary of IBA, is a nationally recognized supplier of nuclear medicine products and PET radioisotopes - notably FDG. The company's extensive technological expertise provides reliable, innovative solutions to the Nuclear Medicine / PET community for the diagnosis and treatment of cancer. Based out of Sterling, Virginia, with more than 250 employees nationwide, Eastern Isotopes is an established, multi- disciplined operation poised for continued growth. For additional information, visit www.easternisotopes.com. About IBA IBA is an acknowledged, world leader in Particle Accelerator Technology Services & Equipment, Sterilization & Ionization Services for healthcare products, food and advanced applications, as well as the production and distribution of Radioisotopes. IBA (www.iba-worldwide.com) is listed on the pan-European stock exchange, EURONEXT, and is part of the NEXT 150 index and market segment NextEconomy. 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, 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. Contact: Isonics Corporation, Golden Daniel J. Grady, 410/381-5254 dangrady@isonics.com or Eastern Isotopes, Inc. Anwer Rizvi, 317/576-0042 arizvi@easternisotopes.com or IBA Pamela P. Wilkerson, 925/399-6319 pwilkerson@iba-group.com