Isonics Corporation Announces Initiative for Expansion of European Shareholder Base
Wednesday May 26, 6:30 am ET
Frankfurt Listing and German Subsidiary with Homeland Security Presence Provide Launching Pad to Increase Awareness in European Markets

GOLDEN, Colo.--(BUSINESS WIRE)--May 26, 2004-- Isonics Corporation (Nasdaq:ISON - News), a world-wide leader in the development of isotopically engineered semiconductor materials utilizing advances in nanotechnology, and a supplier of silicon-on-insulator (SOI) wafers to the semiconductor industry and isotopes for life sciences and health care applications, announced today that the Company is launching an initiative to leverage its European presence and broaden its shareholder base in the region.
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The Company is listed on the Frankfurt Stock Exchange as "IO9." The Company already has a strong foothold in Europe through its wholly-owned subsidiary, Chemotrade, based in Dusseldorf, Germany. Chemotrade is a value-added re-seller of stable and radioactive isotopes for pharmaceutical and industrial research as well as for industrial and medical imaging, calibration sources and for brachytherapy applications in the European market. In addition, Isonics has a 6% interest in Berlin-based Institut of Umwelttechnologien GmbH (IUT). As part of the Company's commitment to Homeland Security, Isonics and IUT have formed a US-based subsidiary IUTDetection Technologies, Inc. to commercialize IUT's neutron-based detection technology that can be used to detect explosives, chemical and biological weapons. When products using this technology are developed, the Company will seek to capitalize on the burgeoning Homeland Security market.

Commenting on the pending campaign to expand awareness in Europe, James E. Alexander, Isonics' president and CEO said, "In today's somewhat volatile markets, it obviously helps to have as broad a shareholder base as possible, and we feel that we have a strong story to tell to the European investment community. We plan to use our existing presence as a springboard for several initiatives over the coming months to let foreign investors know who we are and what we do. Also, with recent tragic terrorist attacks in Europe, the fact that we are focused on developing products for explosive detection is a huge plus. We believe European investors will be very interested in Isonics and in our portfolio of products and technologies."

About Isonics Corporation

Isonics Corporation has three business divisions: (1) Isonics Semiconductor, (2) Isonics Life Sciences, and (3) Homeland Security. 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. Through advances in nanotechnology, the Company is also focused on research and development opportunities for further, value-added product and application development. Isonics' Life Sciences division markets and sells stable isotopes for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and radioisotopes and stable isotopes, such as oxygen-18 for positron emission tomography (PET) imaging. 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 technology. Additional information may be obtained at the Company's Web site at http://www.isonics.com.

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, 2003, and its quarterly report on Form 10-QSB for the nine months ended January 31, 2004, both as filed with the Securities and Exchange Commission, which include the Company's 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.

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Contact:
Investor Relations:
Trilogy Capital Partners, Inc.
Randall Lewis, 800-342-1467
randy@trilogy-capital.com
or
Company:
Isonics Corporation
James Alexander, 303-279-7900
jealexander@isonics.com