GOLDEN, Colo. December 6, 2002. Isonics Corporation announced that its subsidiary, IUT Detection Technologies, has acquired the exclusive, world-wide rights to detection technologies for explosives, chemical weapons, illegal drugs and other chemical compounds from the Institut fur Umwelttechnologien GmbH (IUT) of Berlin, Germany, of which Isonics is a minority shareholder.

According to James Alexander, Chairman and CEO of Isonics Corporation, "The technology portfolio we have acquired consists of a full product pipeline of devices and technologies based on neutron detection and gamma spectroscopy. A number of these technologies and potential products have been under development at IUT for approximately five years and have been qualified at German military and industrial installations. It is IUT Detection Technologies' mission to complete the development and bring these products to market expeditiously."

"The most advanced product, currently in the prototype stage, should be commercially available in the middle of 2003. This product, named NeutroTest, is a portable instrument capable of interrogating small items, such as baggage or suspicious parcels or other objects. It can discriminate between explosives, chemical warfare agents, and benign or inert materials, even through steel casings. In its present form, it can be used to identify landmines and local police and fire departments can use it to assess potential threats in the field. To expand its application, we plan to configure this technology into a form for screening packages or hand carried luggage at airports, office building, and other high security locations."

"In the short term, we plan to fund continued development and product manufacturing at IUT's German facility. We expect that this will minimize our start-up costs and allow us to get the products to market at the earliest possible time. It will also provide access to Research Professor, Dr. Jurgen Leonhardt, Founder and President of IUT, a world-renowned scientist, and proven business leader in Germany, who was able to turn his concepts and ideas into successful enterprises."

Dr. Leonhardt commented, "We have known Isonics for a number of years and are very familiar with their people and capabilities. We believe that signing this agreement with a US based public company offers the best alternatives for IUT in its quest to reach the largest market for our products. In addition it provides several more options for securing funding needed to expand our business and continue developing our innovative detection technologies. Because of our extensive expertise in these technologies and experience in working with large companies, governments and military forces in Europe, we believe we will bring to the market a proven product line that will facilitate detection and identification of various chemical compounds in a wide-range of applications. We are encouraged by the feedback we have received on our products and are eager to enter the US marketplace."

Alexander further noted, "We expect that the industrial and environmental applications for our devices will considerably expand the potential market for these new products. Attracted by the market size and potential, some of the largest US corporations have entered the Homeland Security field through acquisitions, such as GE's recent purchase of Ion Track, a private manufacturer of IMS based systems. Based on our findings, a comparative review of all available technologies shows that our technology and its ability to penetrate closed containers by utilizing neutron detection, should prove to be a formidable competitor in the market."

For additional information visit www.iut-berlin.com .

Military & Aerospace Electronics