Isonics Corporation Provides Updates on NeutroTest Production and Mark

    Business Editors

    GOLDEN, Colo.--(BUSINESS WIRE)--March 1, 2005--Isonics Corporation (NASDAQ:ISON), committed to the development of next-generation technology for the homeland security and semiconductor markets, has provided an update on NeutroTest(TM) product development and marketing activities. The announcement was made by James E. Alexander, Isonics' Chairman and CEO.
    "As one part of our marketing process, NeutroTest was presented at this year's International Defense Exhibition & Conference (IDEX 2005), held Feb. 12-17 in Abu Dhabi, United Arab Emirates," said Mr. Alexander. "Response at IDEX was positive, as expected, with interest in NeutroTest coming from representatives of countries known to have had or which have the potential for terrorist activities. Interest was also expressed by representatives of private organizations in the security industry who wanted to act as sales representatives for NeutroTest in their respective territories."
    The development and commercialization team has gone through a number of improvements in design and functionality of the NeutroTest prototype. The present device is smaller and lighter than the version unveiled in October. Before the product is released for commercial sales, additional improvements and design changes are expected for both product enhancement and compliance with new government standards that are anticipated to be established later this year.
    Isonics also announced continued progress in the development of its domestic and international marketing and sales capabilities. In January, the Company announced the appointment of Dennis Koehler, a security industry specialist and longtime executive of the Federal Aviation Administration, to the government sales and marketing leadership post. "We are currently establishing an in-house sales and marketing team under the direction of Mr. Koehler to address the federal, state, and local government market in the United States. The Company is in the formative states of developing its sales approach for the international market," said Mr. Alexander.
    The Company expects to have a NeutroTest product available for international sales in late second calendar quarter and for U.S. sales in the third calendar quarter of 2005, respectively.
    "After we have received the appropriate approvals, we plan to initially target about 1,500 government and commercial organizations in the U.S," said Mr. Koehler. "The worldwide target market for NeutroTest and NeutroTest-derived products is believed to be 5 to 10 times this number."
    Isonics has identified a range of $30,000 to $50,000 per unit as list pricing for NeutroTest, depending on customer-specific requirements. The Company believes its present outsourced assembly capacity is up to 100 units per month, but is investigating options for increasing capacity.

    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 Boris Rubizhevsky, 303-279-7900 or Investor Relations: Trilogy Capital Partners, Inc. Paul Karon, 800-592-6067 paul@trilogy-capital.com

KEYWORD: COLORADO INDUSTRY KEYWORD: HARDWARE ADVERTISING/MARKETING AEROSPACE/DEFENSE GOVERNMENT MANUFACTURING TRADESHOW PRODUCT SOURCE: Isonics Corporation

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