Isonics Corporation Provides Update on Silicon-28 Activities; Company

    Business Editors

    GOLDEN, Colo.--(BUSINESS WIRE)--Jan. 25, 2005--Isonics Corporation (NASDAQ: ISON), committed to the development of next-generation technology for the homeland security and semiconductor markets, announced today an update on its high thermal conductivity silicon-28 development activities. This announcement was made by James E. Alexander, Isonics' chairman and CEO.
    "We are generally pleased with the progress we are making with silicon-28 in the thermal management area," stated Mr. Alexander. "Such temperature reductions being seen in more recent testing are generally considered meaningful and are encouraging to the Company. Management's conclusion from all of the third-party testing to date is that silicon-28 is effective at reducing temperatures in a variety of semiconductor devices (but not all), more advanced technologies seem to benefit more than older technologies, and the greater the silicon-28 content, the greater the benefit. While we are not able to identify these third parties by name due to confidentiality restrictions, we are providing more details of the actual testing results so our shareholders may form their own opinions regarding our progress."
    Work performed in 2004 with a microprocessor manufacturer evaluating actual microprocessors manufactured on silicon-28 epitaxial wafers revealed a reduction of several degrees in peak temperature due to lateral heat spreading enabled by the thin silicon-28 layer. A separate evaluation utilizing a silicon-28 silicon-on-insulator (SOI) test structure exhibited a 5- to 10-degree centigrade temperature benefit compared to a similarly manufactured natural silicon test structure. Isonics is in discussions with this manufacturer regarding further evaluation of silicon-28 SOI wafers which the Company has delivered.
    Isonics is not focusing exclusively on microprocessor applications. A semiconductor device manufacture evaluated a silicon-28 version of its RF power transistor product used in cellular base stations. Temperature reductions of 5 to 12 degrees centigrade were measured and calculated, respectively, on devices manufactured on thick silicon-28 epitaxial layers. It is generally accepted that a 10-degree temperature reduction will double product lifetime. Discussions are underway with other semiconductor manufacturers for more evaluations of power transistor applications as well as high speed graphics applications -- both of which are expected to benefit from lower temperature.
    Testing has also revealed other improved properties of silicon-28. A Japanese device manufacturer found that silicon-28 exhibited substantially improved gate oxide integrity in its testing. Improved gate oxide integrity results in lower leakage current and, consequently, higher reliability
    Key to the commercial success of silicon-28 will be the establishment of a large, lower-cost supply. Isonics' present Russian-based supply is sufficient for continued development and small commercial applications but will not be sufficient if larger amounts are required. Isonics is considering various alternatives, including two advanced isotope separation technologies, for a greater supply of silicon-28 should it be needed, although it has not entered into any agreements with any potential supplier.

    About Silicon-28

    Silicon-28 is an isotopically pure form of natural silicon, the material from which virtually all semiconductor devices are manufactured. Being isotopically pure, silicon-28 has a more perfect crystal structure which promotes more efficient heat flow. Isonics has an exclusive license to the key U.S. patent in this field, has received two related patents in its own name and has several patents pending. Isonics provides small quantities of silicon-28 epitaxial and SOI wafers to customers wanting to evaluate them in specific product applications.

    About Isonics Corporation

    Isonics Corporation has three business divisions: (1) Isonics Semiconductor, (2) Isonics Life Sciences, and (3) Homeland Security and Defense. Isonics is a world leader in isotopically engineered materials and through its semiconductor division produces isotopically pure silicon-28 chemicals and wafers 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 at the present time as we proceed to develop further our neutron-based detection technologies. Additional information may be obtained at the Company's Web site at http://www.isonics.com. A presentation about Isonics' NeutroTest(TM) explosive detection prototype can be found at http://www.tril03.com/isonics/madrid.pdf. A video demonstrating the functioning NeutroTest prototype can be viewed at http://www.trilogy-capital.com.edgesuite.net/.

    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 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, 2004, and its quarterly report on Form 10-QSB for the six months ended October 31, 2004, both as 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 the Company's filings with the Securities and Exchange Commission. Isonics cautions investors that there are currently no commercial NeutroTest products, and no guarantee there will be. Isonics has made no NeutroTest sales and no government agency or other person has expressed an interest in purchasing NeutroTest. There can be no assurance that Isonics will be able to manufacture the NeutroTest for the market at a cost and with capabilities that meet the needs of prospective customers.
    This announcement may contain forward-looking statements made by senior management of Isonics that involve risks and uncertainties, such as statements about plans, objectives, expectations, assumptions or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and performances, or achievements expressed or implied by the forward-looking statements. Actual future results and trends may differ materially from those made in -- or suggested by -- statements made in this announcement due to a variety of factors. Consequently, you should not place undue reliance on any forward-looking statements made in this announcement. For more information about Isonics and risks arising from investing in Isonics, you are directed to the Company's most recent Form 10-KSB filed with the Securities and Exchange Commission.

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CONTACT: Isonics Corporation James E. Alexander, 303-279-7900 or Investor Relations: Trilogy Capital Partners, Inc. for Isonics Corporation Paul Karon, 800-342-1467 paul@trilogy-capital.com

KEYWORD: COLORADO INDUSTRY KEYWORD: CHEMICALS/PLASTICS AEROSPACE/DEFENSE GOVERNMENT MANUFACTURING SOURCE: Isonics Corporation

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