SOURCE: ISONICS CORPORATION

November 16, 2005 09:45 ET

Isonics Corporation Signs Development Agreement to Incorporate IMS "Sniffer" Technology Into Mailroom Workstations

GOLDEN, CO -- (MARKET WIRE) -- November 16, 2005 -- Isonics Corporation (NASDAQ: ISON), committed to the development of next-generation technology for the homeland security and semiconductor markets, has signed a development agreement with DualDraw LLC of Commerce City, Colorado, a leading manufacturer of air quality equipment.

DualDraw and Isonics have agreed to create and test a prototype that combines a version of Isonics' ion mobility spectroscopy (IMS) "sniffer" technology with DualDraw's Mailroom Inspection Workstations which the companies expect to introduce as a commercial product in the first half of calendar 2006.

The DualDraw downdraft workstation keeps toxic substances away from the breathing zone of mailroom workers who are sorting or opening mail and captures such substances with a HEPA filtration system. The incorporation of Isonics' IMS capability will provide an alarm if toxic or explosive substances are detected.

A recent article published by Mailroom Safety News indicated that since 2001, over 23,000 incidents regarding suspicious powders were reported resulting in evacuations and lost productivity. Dan Prather, Vice President of Business Development for DualDraw, expanded on the market need saying, "Customers, such as the Department of Defense and the Department of Homeland Security, have expressed interest in the added investment needed to alert their employees to a potential harmful substance in the mail stream. DualDraw's customers are asking for a system that can quickly distinguish between a harmful substance and a false alarm, thereby preventing unwarranted downtime."

"There is a substantial, identified need for such a hybrid product to protect mailroom workers," commented Dennis Koehler, Vice President of Marketing & Sales for Isonics' homeland security products. "We view this relationship as the first of many that we expect to leverage the IMS technology into numerous markets and which will extend Isonics reach through the marketing and sales efforts of our partners."

About DualDraw LLC

Established in 1995, DualDraw is a leading manufacturer of air quality equipment for Fortune 500 and US government clients. Additional information on DualDraw LLC may be found at www.dualdraw.com.

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.

Contact Information

  • Contacts:
    Isonics Corporation
    James E. Alexander
    303-279-7900

    CTA Public Relations
    Bevo Beaven
    VP/GM
    or
    Bill Conboy
    VP
    (303) 665-4200