Commercialize Biological Decontamination Technology

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January 17, 2006 08:30 AM US Eastern Timezone

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Isonics Corporation Selected to Participate in Global Initiatives

for Proliferation Prevention (GIPP) Program to Develop and

Commercialize Biological Decontamination Technology; Environmentally-

Safe Method Focused on Homeland Security and Hospitals

GOLDEN, Colo.--(BUSINESS WIRE)--Jan. 17, 2006--Isonics Corporation

(NASDAQ: ISON), a developer of innovative solutions for the homeland

security and semiconductor markets, announced today that it has been

selected to participate in the U.S. Department of Energy National

Nuclear Security Administration's (NSSA) Global Initiatives for

Proliferation Prevention (GIPP) program. As part of the program, the

Company has entered into a two-year, $2 million ative Research

and Development Agreement (CRADA) with Battelle Memorial Institute

as operator of DOE's Pacific Northwest National Laboratory (PNNL).

Isonics, Battelle and the Russian State Scientific Center Research

Institute of Highly Pure Biopreparations (IHPBP) will collaborate to

complete the development of and then commercialize an

environmentally safe system comprised of a chemical agent and an

aerosol-based delivery method which can decontaminate microbial and

fungal cells, spores, and viruses. In a prior phase of this program,

IHPBP successfully demonstrated the efficacy of the proposed system

and technology.

" There is a growing level of concern that the healthcare industry

and EPA do not have the ability to effectively respond to a

biological catastrophe in this country, " explained E.

, Isonics' Chairman and CEO. " Most of the effort appears to

be directed to the needs of deterrence, detection and response to an

event. There has been little reference to the planning and

technologies needed for recovery - specifically advancements in

remediation methodologies. "

Isonics believes that this decontamination technology holds

significant promise as a long-term solution to a national problem.

Isonics' objective is to help create an effective technology that

will allow for rapid, inexpensive and environmentally safe

remediation of buildings that have been contaminated by a biological

agent, thus allowing a speedy return to a state of normalcy.

" The technology which we have undertaken to help develop and

commercialize not only has the potential for post-terrorist clean-up

application such as anthrax in the Hart Senate Office Building, "

continued Mr. , 'but also can address the problem of

hospital-acquired infections as a result of antibiotic-resistant

bacteria. "

Hospitals struggle with the control of infectious diseases and

continue to look for efficacious, environmentally friendly and cost-

effective means of dealing with this pervasive problem. Isonics

intends to focus on this existing market need for decontamination of

patient rooms, operating theaters, medical equipment and furniture

which constitute the over 5,000 hospitals and nearly 1 million beds

in the U.S. healthcare system. The Company envisions that the same

technology will then be available and ready to serve in any less

routine biological decontamination mission.

According to the terms of the agreement, Isonics will provide in-

kind contributions valued at $1 million over the two year period and

will receive certain rights related to the intellectual property and

patents resulting from the joint development efforts. Isonics is

responsible for marketing and sales of the products and technologies

developed under the program. NSSA will provide funding for the

balance of the CRADA, including work at both IHBPB and PNNL.

The GIPP program enhances U.S. national security by encouraging

former Soviet weapons of mass destruction scientists, engineers and

technicians to redirect their expertise to peaceful work through

partnerships with U.S. commercial enterprises and DOE's national

laboratories. These unique partnerships provide new resources and

markets for U.S. companies, while establishing important private

sector linkages for former Soviet weapons scientists.

Since the program was established in 1994, it has evolved from

primarily research and development to actively fostering development

of commercially-viable technologies. Since 1999, 30 technologies

have been commercialized or received venture capital. The agreement

between Isonics and Battelle will allow for what Isonics believes is

a crucial technology need in the U.S. Fortunately, programs such as

IPP exist where U.S. industry can draw from the Russian scientists'

expertise in developing such technologies and the scientists, in

turn, are employed.

For more information on the Initiatives for Proliferation Prevention

program, visit http://www.nnsa.doe.gov/na-20/ipp.shtml.

About Isonics Corporation

Isonics Corporation has three business divisions: (1) Homeland

Security and Defense (2) Semiconductor, and (3) Life Sciences.

Isonics is a world leader in isotopically engineered materials and

through its semiconductor division produces isotopically pure

silicon-28 chemicals, silicon-on-insulator wafers, wafer reclaim

services and test wafers, including 300mm, for the semiconductor

industry. Isonics' Life Sciences division markets and sells isotopes

to the health care industry for the imaging and treatment of cancer.

Stable isotopes can be thought of as ultra pure materials. This high

degree of purification provides enhanced properties as compared to

natural materials. Our efforts in the Homeland Security segment are

nascent (notwithstanding our operations at Protection Plus Security

Corporation) at the present time as we proceed to develop further

our IMS and neutron-based detection technologies. Additional

information may be obtained at the Company's Web site at

www.isonics.com.

Cautionary Statement

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 estimates, assumptions, 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, 2005 and reports

subsequently filed with the Securities and Exchange Commission,

which include the Company's historical 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 these filings with the Securities

and Exchange Commission.

Contacts

Isonics Corporation

E. , 303-279-7900

or

CEOcast, Inc. for Isonics

Theiss, 212-732-4300