Isonics Homeland Security Division Signs Technology Agreement with Russia's Top Nuclear...

GOLDEN, Colo. -- Isonics Corporation (Nasdaq:ISON), committed to the development of next-generation technology for the homeland security and semiconductor markets, has signed a technology research and development agreement with the Kurchatov Institute, Russia's leading research and development

Under the terms of this agreement, the Moscow-based Kurchatov Institute will establish a task force of scientists to identify and screen new technologies and products for potential acquisition by the Isonics homeland security division. The Kurchatov scientists will provide a range of research and development services to assist Isonics as the Company expands its offerings in the global homeland security sector. Isonics recently announced execution of a $22 million convertible debt financing, allocating at least 50% of the proceeds for acquisitions through its homeland security division.

The services Kurchatov will provide Isonics include:

--Review new technologies, projects and products being developed in Russia by various entities

--Provide comprehensive review of useful technologies under development at the Kurchatov Institute itself

--Serve as an initial filter in evaluating potential technologies or products for potential acquisition by Isonics

--Assist in research and development for other Isonics projects

--Assist in securing rights to selected technologies and products

--Facilitate testing and certification

"We believe that this agreement will speed the expansion of Isonics' technology pipeline in the global security industry," said Mr. Rubizhevsky. "Isonics believes that there is valuable research ongoing in Russia by excellent scientists on projects that are potentially of interest to us. Ultimately, our goal under this agreement is to find interesting technologies and products in Russia, and if necessary to provide further development funds that will result in new products for the Isonics homeland security division."

The Kurchatov Institute was established in 1943 to conduct weapons research, but was later transformed into one of the one of the world's leading academic centers in pursuit of peaceful uses of scientific knowledge. It is partially funded by the Russian government, but also holds numerous commercial research agreements worldwide. It employs thousands of scientists and associates.

"Isonics has provided us with an excellent opportunity to make important scientific contributions to the world security marketplace," said academician Vladimir Baranov, director of the Institute of Molecular Physics, the oldest division of the Kurchatov Institute. Dr. Baranov will oversee Kurchatov's efforts under this agreement. "We are eager to bring our expertise in isotope technologies and other fields in our partnership with Isonics to develop useful products to improve the safety and security of people around the world."

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 nine months ended January 31, 2005, 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.