Theragenics Corporation(R) Reports Fourth Quarter and Year-End 2005 Consolidated Financial Results

Theragenics Corporation(R) (NYSE: TGX), a medical devicecompany serving the prostate cancer treatment and surgical markets,today announced consolidated financial results for the fourth quarterand year ended December 31, 2005. Consolidated revenue for the quarterwas $11.4 million, an increase of $2.9 million, or 34.3% over thefourth quarter of 2004. For the 12-month period, consolidated revenuewas $44.3 million, an increase of $10.9 million or 32.8%, compared tothe prior year. Net loss for the quarter was $236,000, or $0.01 pershare, compared to a net loss of $1.3 million, or $0.04 per share inthe fourth quarter of 2004. For the year, the net loss was $29.0million, or $0.93 per share, compared to a net loss of $4.3 million,or $0.14 per share in 2004. Revenue improvements during the yearincluded increases in sales of both TheraSeed(R) and I-Seedbrachytherapy products and the inclusion of revenue from CP Medical'sproducts. Theragenics acquired CP Medical on May 6, 2005.

The quarter and year ended December 31, 2005 include pre-taxrestructuring charges of $475,000 for the quarter and $33.4 millionfor the year, respectively. $32.0 million of the restructuring chargesfor the year were one-time non-cash charges. On a non-GAAP basis, thepre-tax earnings, excluding these restructuring charges, would havebeen $239,000 for the fourth quarter of 2005. A reconciliation of thepre-tax loss computed in accordance with GAAP to the non-GAAP pre-taxearnings (loss) excluding restructuring charges appears in a scheduleaccompanying this press release.

Commenting on the results, Chief Executive Officer and PresidentM. Christine Jacobs stated, "2005 was a year of transformation forTheragenics. We made some tough decisions that appear to be payingoff. We restructured the Company in an effort to right size our coststructure and fully utilize our resources to support growth in our twobusiness segments. In May, we acquired CP Medical. This acquisitionhas had a positive impact on our results of operations. We continue tobe pleased with the sales performance in our core prostatebrachytherapy seed business. The success of our 2005direct-to-consumer brachytherapy campaign has encouraged us tocontinue these efforts in 2006, with a new twist. We have entered intoan association with ESPN and the B.A.S.S. Tour and recently produced acommercial that will be aired in conjunction with several 2006B.A.S.S. Tour fishing events. In our surgical device segment, ourefforts will continue to be focused on product and customerdevelopment, sales growth and vertical integration. As a stronger,leaner and more focused company, we are also better able to pursueinvestment opportunities to provide additional strategicdiversification and continued growth. All this culminates in what webelieve will be a turnaround year for the Company. We expect tocontinue our diversification strategy, grow our businesses and lookforward to returning to profitability in 2006."

Theragenics will host a conference call today at 11:00 a.m.Eastern Time. To access the call, dial 800-538-9844 or 706-634-7274and provide the conference ID code 4190223. This call is also beingbroadcast live over the Internet, and a recording will be availablefor one month on the Company's website. To access the webcast, log onto www.theragenics.com and select the Investor Relations buttonfollowed by selecting the Overview button. You also can access a phonereplay of the call until Midnight, January 25, by dialing 800-642-1687or 706-645-9291 and providing the conference ID code: 4190223.

Theragenics Corporation(R) (NYSE: TGX) is a provider ofbrachytherapy and surgical products. In Buford, Ga., the Companymanufactures and markets its premiere product, the palladium-103TheraSeed(R) device (www.theraseed.com), and I-Seed, an iodine-125based device, which are used primarily in the minimally invasivetreatment of localized prostate cancer. Theragenics is the world'slargest producer of palladium-103 for human use. Through itssubsidiary, CP Medical (www.cpmedical.com), based in Portland, Ore.,the Company manufactures and distributes wound closure and othermedical devices with applications in, among others, the veterinary,brachytherapy, orthopedics, dental, plastic surgery, and cardiologymarkets. For additional information, call the Company's InvestorRelations Department at (800) 998-8479 or visit www.theragenics.com.

This press release contains non-GAAP financial measures used bymanagement in its analysis of the Company's operating performance.Management believes presentation of financial measures excluding theimpact of certain identified items provides supplemental informationthat is helpful to an understanding of the operating results of theCompany's businesses and period-to-period comparisons of performance.Non-GAAP financial measures should be considered in addition to, butnot as a substitute for, the Company's reported GAAP results.

This release contains forward looking statements within themeaning of the Private Securities Litigation Reform Act of 1995, theaccuracy of which is necessarily subject to risks and uncertainties,including, without limitation, statements regarding optimism for theresults of Theragenics' restructuring, Theragenics' and CP Medical'ssales growth, statements regarding the contribution of CP Medical toTheragenics' sales, new sales and marketing initiatives, new productdevelopment, Theragenics' relationship with its distributors,institution of activities and plans that could benefit Theragenics'goals in its diversification efforts and anticipated positive resultsin general, including a return to profitability in 2006. Actualresults may differ materially due to a variety of factors, including,among other things, risks and uncertainties related to new product andprocess development cycles, integration risks, potential costs anddelays in production optimization, effectiveness and execution ofmarketing and sales programs by Theragenics and its distributor,changes in product pricing by Theragenics or other brachytherapy seedproducers, changes in costs of materials used in production processes(especially as it relates to isotope production), continued acceptanceof the products by the market, continued demand for palladium-103,introduction and/or availability of competitive products by others,third-party (including CMS) reimbursement, physician training,third-party distribution agreements, ability to execute on acquisitionopportunities on favorable terms and successfully integrate anyacquisitions, and other factors set forth from time to time in theCompany's Securities and Exchange Commission filings.

All forward looking statements and cautionary statements includedin this document are made as of the date hereby based on informationavailable to the Company as of the date hereof, and the Companyassumes no obligation to update any forward looking statement orcautionary statement.
THERAGENICS CORPORATION(R) AND SUBSIDIARY CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share data)

Three Months Ended Year Ended
12/31/05 12/31/04 12/31/05 12/31/04
------------------------------------
Total revenues $11,357 $8,456 $44,270 $33,338
Cost of sales 5,891 3,975 23,763 14,122
------------------------------------
Gross profit 5,466 4,481 20,507 19,216
Operating expenses:
Selling, general &
administrative 5,324 4,616 20,152 17,619
Research & development 258 2,248 3,632 9,583
Restructuring expenses 475 - 33,390 -
------------------------------------
6,057 6,864 57,174 27,202
------------------------------------
Operating loss (591) (2,383) (36,667) (7,986)
Other income, net 355 349 1,267 1,134
------------------------------------
Loss before income tax (236) (2,034) (35,400) (6,852)
------------------------------------
Income tax benefit - (745) (6,394) (2,542)
------------------------------------
Net loss $(236) $(1,289)$(29,006) $(4,310)
====================================
Net loss per common share, Basic $(0.01) $(0.04) $(0.93) $(0.14)
====================================
Net loss per common share, Diluted $(0.01) $(0.04) $(0.93) $(0.14)
====================================
Weighted average
Shares outstanding - Basic 32,027 29,983 31,273 29,971
Shares outstanding - Diluted 32,027 29,983 31,273 29,971
Three Months Ended Year Ended
KEY RATIOS 12/31/05 12/31/04 12/31/05 12/31/04
------------------------------------
Gross Margin 48.1% 53.0% 46.3% 57.6%
Operating Margin (5.2)% (28.2)% (82.8)% (24.0)%
Operating Margin before
restructuring charges (1.0)% (28.2)% (7.4)% (24.0)%
Loss Before Tax Margin (2.1)% (24.1)% (80.0)% (20.6)%
Margin on earnings (loss) before
tax and restructuring charges 2.1% (24.1)% (4.5)% (20.6)%
Loss After Tax Margin (2.1)% (15.2)% (65.5)% (12.9)%
ROE ( 0.8)% ( 3.7)% ( 22.9)% ( 3.1)%
THERAGENICS CORPORATION(R) AND SUBSIDIARY CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)

(In thousands)

Assets December 31, December 31,
2005 2004
-------------------------
Cash, short-term investments
& marketable securities $45,608 $62,261
Trade accounts receivable 7,622 5,787
Assets held for sale 3,433 -
Inventories and other current assets 7,762 7,627
-------------------------
Total current assets 64,425 75,675
Property, plant & equipment, net 32,766 70,215
Goodwill 18,370 2,578
Other intangible assets 6,388 86
Other long-term assets 115 124
-------------------------
Total assets $122,064 $148,678
=========================

Liabilities & Shareholders' Equity
Accounts payable & accrued expenses $4,281 $3,086
Deferred income taxes - 6,920
Other liabilities 2,100 612
-------------------------
Total liabilities 6,381 10,618
Shareholders' equity 115,683 138,060
-------------------------
Total liabilities &
shareholders' equity $122,064 $148,678
=========================
THERAGENICS CORPORATION(R) AND SUBSIDIARY - RECONCILIATION OF U.S.
GAAP NET LOSS TO EARNINGS (LOSS) BEFORE INCOME TAXES AND RESTRUCTURING
CHARGES

(In thousands)
Three Months Ended Twelve Months Ended
12/31/05 12/31/04 12/31/05 12/31/04
-------------------------------------
Net loss, U.S. GAAP $(236) $(1,289) $(29,006) $(4,310)
Add (deduct):
Income tax benefit - (745) (6,394) (2,542)
Restructuring charges
One time impairment,
write off, contract
termination and
severance costs 191 - 33,033 -
Site exit and disposal
costs 284 - 357 -
-------------------------------------
Total restructuring charges 475 - 33,390 -
-------------------------------------
Earnings (loss) before income
taxes
and restructuring charges $239 $(2,034) $(2,010) $(6,852)
=====================================