For Release

11, 2008 at 7:30AM EST

Inc. Reports Second Quarter Results

Washington - IsoRay Inc. (AMEX: ISR) a medical isotope company focusing on

treatment of prostate and other malignant disease through use of its proprietary

radioisotope technology, announced its financial results for the quarter and

months ended December 31, 2007.

revenue for the quarter increased by 24 percent to approximately $1.8 million

over approximately $1.4 million in the year-earlier period. Medical centers

ordering the Company's Proxcelan seeds increased to 53, a 61 percent increase

over the 33 centers that ordered in the second quarter of fiscal 2007.

Company's revenues during the quarter were generated through sales of Proxcelan

Cesium-131 seeds for the treatment of prostate and ocular cancers. Since the

first patient implant in October 2004 through January 2008, approximately 2300

prostate cancer patients have been treated with Cesium-131.

Company's net loss increased from $1.9 million or $0.12 loss per share in fiscal

year 2007's second quarter, to $2.8 million or $0.12 loss per share in the

quarter ended December 31, 2007. The larger loss was mainly due to costs of

new facility, the cost of decommissioning the old facility, higher production

costs, increased protocol expenses, and higher sales and marketing personnel

expenses due to higher

commissions paid based on higher revenues and an increase in the sales

Company had cash of $3.5 million and short-term investments of $8.7 million

of December 31, 2007.

sales for the second fiscal quarter of fiscal 2008 showed a significant increase

from the second fiscal quarter of 2007," said IsoRay Chairman and CEO Roger

Girard. "Our ongoing goal is to drive sales growth and to that end we have

initiated educational workshops in 2008 to help provide physicians with the

tools to understand the unique characteristics of Cesium-131, and how these

differences translate into modified implant planning techniques."

added, "Our focus in the rest of fiscal 2008 is on increasing revenue while at

the same time increasing the efficiency of the manufacturing process and thereby

reducing costs. Key initiatives in 2008 include taking directly to the consumer

the favorable initial 2 year clinical results from our monotherapy protocols

report the latest data from our other ongoing trials".

pipeline during Q2-FY2008 included 9 new sites or customers that collectively

placed 16 orders for Proxcelan Cesium-131 brachytherapy seeds during the

sites received amended Radioactive Material (RAM) licenses; 27 sites have

submitted RAM licenses for amendment and 50 potential new sites have begun

process for amending their licenses during the quarter ended December 31, 2007.

previously announced, a conference call is scheduled for 1:30 Pacific Time

p.m. Eastern Time) today to discuss this earnings release. Participants should

dial into the call 10-15 minutes before the scheduled time using the following

numbers: 877-407-8031 (from the US and Canada) or +1 201 689-8031 (from outside

the US and Canada). A live webcast of the conference call will also be

accessible via the Internet at www.isoray.com,

going to www.investorcalendar.com.

telephonic replay of the conference call will be available by dialing

877-660-6853 (from the US and Canada) or +1 201 612-7415 (from outside the

and Canada) and by entering account number 286 and conference ID number 273560.

An online archive will also be available immediately following the call at

sites noted above. Both are available for ten days, through February 21,

financial results reported today do not take into account any adjustments that

may be required in connection with the completion of the Company's review

process and should be considered preliminary until IsoRay files its Form 10-Q

for the fiscal quarter ended December 31, 2007.

Inc., through its subsidiary, IsoRay Medical, Inc., is the sole producer of

Cesium-131 brachytherapy seed, used to treat prostate and other cancers. The

Cesium-131 seed offers a significantly shorter half-life than the two other

isotopes commonly used for brachytherapy, which results in a substantially

faster delivery of therapeutic radiation, lower probability of cancer cell

survival and reduction of the longevity of common brachytherapy side

is based in Richland, Washington. More information is available about IsoRay

in this news release about IsoRay's future expectations, including: the

advantages of our Cesium-131 seed, future demand for IsoRay's existing and

planned products, IsoRay's manufacturing needs and capabilities, whether new

sites will achieve licensure and result in future sales, whether planned

physician education activities will be held or will result in favorable

physician responses, whether IsoRay will be able to reduce production costs

increase revenue, and all other statements in this release, other than

historical facts, are "forward-looking statements" within the meaning of the

Private Securities Litigation Reform Act of 1995 ("PSLRA"). This statement

included for the express purpose of availing IsoRay, Inc. of the protections

the safe harbor provisions of the PSLRA. It is important to note that actual

results and ultimate corporate actions could differ materially from those in

such forward-looking statements based on such factors as physician acceptance,

training and use of IsoRay's products, changing levels of demand for IsoRay's

current and proposed future products; whether later studies and protocols

support the findings of the initial studies, success of future research and

development activities, IsoRay's ability to successfully manufacture, market

sell its products, IsoRay's ability to manufacture its products in sufficient

quantities to meet demand within required delivery time periods while meeting

its quality control standards, IsoRay's ability to enforce its intellectual

property rights, changes in reimbursement rates, changes in laws and regulations

applicable to our product, and other risks detailed from time to time in

IsoRay's reports filed with the SEC.

Statements of Operations