For Release

Inc. Reports First Quarter Results

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

treatment of prostate, lung, head and neck and other malignant disease through

the use of its proprietary radioisotope technology, announced its financial

results for the first quarter of fiscal year 2010, ended September 30,

revenue for the quarter decreased by 9% to approximately $1,379,087 as compared

to approximately $1,519,582 in the first quarter of fiscal

2009. However, 50 medical centers ordered the Company's Proxcelan

seeds in the first quarter of fiscal 2010 compared to the 47 centers that

ordered in the first quarter of fiscal 2009. Management believes that

the decline in sales revenue is primarily attributable to a lower average

invoice price due to the change in the seed loading configurations being ordered

by our current customers in comparison to the first quarter of FY2009. In

addition, as physicians have become more comfortable with the increased energy

of Cs-131 seeds, fewer seeds are being used.

margin for the quarter increased by 208% to approximately $218,998 as compared

to approximately $ 71,146 in the first quarter of fiscal 2009.

diluted loss per share for the quarter decreased by 50% to approximately

per share as compared to approximately $ (.08) per share in the first quarter of

Company's net loss decreased 49% from approximately $1,793,596 in the quarter

ended September 30, 2008 to $906,708 in the quarter ended September 30,

Company reduced its cash burn this quarter by 48% to approximately $515,597 as

compared to approximately $989,015 in the first quarter of fiscal 2009. The

Company had cash and short-term investments of approximately $4,029,087 as of

September 30, 2009. Management believes that this cash position

combined with our reduced monthly cash requirements can be used to support all

of the current initiatives.

the first quarter of FY2010, IsoRay commenced shipping seeds for use in other

disease sites including lung, head and neck, and ocular melanomas, supporting

the expansion of our total body brachytherapy isotope.

Babcock, IsoRay Chairman and CEO, commented "There is a unique opportunity for

Cesium-131 with its short half life and energy level to become the isotope of

choice for brachytherapy applications throughout the entire body. We

are aggressively expanding the use of Cesium-131 throughout the body with our

physician partners and demonstrating that Cs-131 can be effectively used as

primary and adjunct treatment for many cancers. It is our expectation to

continue to gain market share in the prostate market as well as expand into all

other areas of the body with a total isotope solution. We already see our

strategic plan gaining momentum and expect more facilities to adopt Cs-131 for

other tumor locations."

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

Cesium-131 brachytherapy seed.

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

other isotopes commonly used for brachytherapy, which results in a substantially

faster delivery of therapeutic radiation, a theoretically improved radiation

delivery against aggressively replicating cancer(a), and

the potential for a reduced longevity of common brachytherapy side effects(b).

is currently used in the treatment of prostate cancer(c) and

ocular melanoma(d), among

other cancerous conditions.

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

CI, Dale RG, Coles IP, et al. The Determination of Radiobiologically Optimized

Half-lives for Radionuclides Used in Permanent Brachytherapy Implants.

International Journal of Radiation Oncology, Biology, and Physics

SG, Beriwal S, Smith R, Benoit R. Is there decreased duration of acute urinary

and bowel symptoms after prostate brachytherapy with cesium 131 isotope?

International Journal of Radiation Oncology, Biology, and Physics

WS, Prestidge BR, Kurtzman SM, Beriwal S, Moran BJ, Patel RR, Rivard,

MJ. Recommendations for permanent prostate brachytherapy with

(131)Cs: a consensus report from the cesium advisory

group. Brachytherapy 2008;7(4):290-6.

CS, Rivard MJ. COMS eye plaque brachytherapy dosimetry simulations

for 103Pd, 125I, and 131Cs. Medical Physics

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

advantages of our Cesium-131 seed, whether cash on hand will be sufficient to

fund planned operations throughout FY2010, whether reductions in the Company's

burn rate will continue, whether physicians and facilities will adopt Cs-131 for

use for non-prostate cancers, future demand for IsoRay's

existing and planned products, IsoRay's manufacturing needs and capabilities,

whether IsoRay will continue to be able to reduce operating costs and increase

revenue, whether IsoRay will be able to expand its base beyond prostate cancer,

whether IsoRay's Cesium-131 seed will be used to treat additional cancers and

malignant disease, 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, 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 both in the United States and internationally, whether

later studies and protocols are completed and support the conclusions of the

initial studies, patient results achieved when Cesium-131 is used for the

treatment of cancers and malignant diseases beyond prostate cancer, successful

completion of future research and development activities, increases in expenses

or other items affecting the Company's burn rate, and other risks detailed from

time to time in IsoRay's reports filed with the SEC.

Inc. and Subsidiaries

Statements of Operations