For Release

Release: February 18, 2009 at 7:30AM

Inc. Announces Distribution Agreement with

Washington - IsoRay Inc. (AMEX: ISR), today announced it has signed an agreement

with BrachySciences a division of Biocompatibles International plc (LSE: BII) to

distribute IsoRay's Proxcelan Cesium-131 brachytherapy seeds.

Babcock, IsoRay Chairman and CEO, commented, "We are very pleased to announce

this collaboration with BrachySciences. Management believes this

distribution agreement will enable us to increase the sales of Cesium-131 within

the prostate cancer therapy market. This supports our ongoing strategy of

driving sales by adding an additional outside distribution channel to augment

our current sales staff. We look forward to a close working

relationship with BrachySciences that will help us further penetrate the

brachytherapy market."

remains committed to bringing innovative products and services to the

brachytherapy market in support of our physicians. We believe that

this agreement will provide our physicians greater choice and flexibility in

offering their patients the newest isotope available.

is committed to providing the most innovative products and technologies to

physicians performing prostate brachytherapy", said Jim Matons, President of

BrachySciences. "We are delighted to have signed an agreement with IsoRay that

will allow us to offer our physicians Cesium-131. We believe that with the

combination of our highly experienced sales team and our latest delivery

technologies, we are ideally positioned to expand the use of this unique

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

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

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

IsoRay at www.isoray.com.

division of Biocompatibles, Inc., is dedicated to improving and expanding the

use of brachytherapy implants for the treatment of early stage prostate cancer.

The company develops, markets, sells, and distributes radioactive seeds as well

as unique delivery systems and ancillary equipment used in brachytherapy

implants. BrachySciences is committed to optimizing the quality and efficiency

of prostate brachytherapy implants by providing state of the art brachytherapy

products, innovative technologies, and services to the physicians and

institutions that treat patients diagnosed with prostate cancer. BrachySciences

is based in Oxford, Connecticut. More information about BrachySciences is

available at http://www.brachysciences.com

Statements in this news

release about IsoRay's future expectations, including: the advantages of our

Cesium-131 seed, any expansion or increase in sales or further penetration in

the distribution of seeds through this contract, access to delivery technologies

, 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 is included for the

express purpose of availing IsoRay, Inc. of the protections of 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 and

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.