Unassociated Document

and REPLACING IsoRay, Inc. Reports Second Quarter Results

WIRE)-- The first line of the table header should read: Three months

ended December 31, (sted Six months ended December 31,).

corrected release reads:

ISORAY, INC. REPORTS SECOND QUARTER

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

second quarter of fiscal year 2010, ended December 31, 2009.

revenue for the quarter increased by 3% to approximately $1,368,347 as compared

to approximately $1,326,703 in the second quarter of fiscal 2009. The revenue

increase is primarily related to orders for the new treatment modalities such as

head and neck, lung and colorectal cancers.

Company's revenues during the quarter were primarily generated through the sales

of Proxcelan Cesium-131 seeds for the treatment of prostate cancer. The Company

has now sold Proxcelan Cesium-131 seeds that have treated in excess of 5,100

patients throughout the US. The Company recognized a gross income of $268,154

for the three month period ended December 31, 2009, compared to a gross loss of

$397,522 which included a one-time impairment of $425,434 for the corresponding

period ended December 31, 2008. If the one-time impairment had not been

present in the second quarter of fiscal 2009, the Company would have had gross

income of $27,912. Using this gross income amount for the second quarter of

fiscal 2009, gross income for the second quarter of fiscal 2010 grew by

Company's net loss decreased 42% from approximately $1.6 million for the three

months ended December 31, 2008 to $950,000 in quarter ended December 31,

Company's cash burn this quarter decreased by 32% to approximately $859,000 as

compared to approximately $1,256,000 in the second quarter of fiscal

Company had cash and short-term investments of approximately $3,106,000 as of

Babcock, IsoRay Chairman and CEO, commented "We are pleased with our 3% gain in

revenue while some of our competitors have recorded drops of 10-20% in

brachytherapy seed sales. Certainly with prostate cancer being highly curable by

most modalities, physician choices are being driven by financial drivers. Most

importantly in an effort to accelerate our revenue growth, IsoRay is focused on

the opportunity to expand our markets beyond prostate cancer. While we will

continue to grow the prostate brachytherapy business, we have embarked on

promoting our brand as the LDR isotope of choice throughout the body. This

quarter we are receiving an increasing number of patient and physician inquiries

regarding the applicability of Cesium for other body locations. We are

continuing to explore other delivery systems that in combination with Cesium can

aid in our fight against cancer."

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

effects(a)(b). IsoRay is based in Richland, Washington. More information is

available about IsoRay at www.isoray.com.

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

Optimized Half-lives for Radionuclides Used in Permanent Brachytherapy Implants.

Int. J. Radiation Oncology Biol. Phys. 2003; 55 (2): 378-385.

Prestidge B.R., Bice W.S., Jurkovic I., et al. Cesium-131 Permanent

Prostate Brachytherapy: An Initial Report. Int. J. Radiation Oncology Biol.

Phys. 2005; 63 (1): 5336-5337.

Safe Harbor Statement

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, whether the nominal increase in revenue, increase in gross

income, and decrease in the cash burn rate seen in the second quarter of fiscal

2010 as compared to the second quarter of fiscal 2009 will continue in the

future, 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, whether changes in IsoRay's sales and marketing strategy will

result in improved sales, 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, whether initial implants of Cesium-131 to treat

non-prostate cancers result in favorable patient outcomes in both the short- and

long-term, patient results achieved when Cesium-131 is used for the treatment of

cancers and malignant diseases beyond prostate cancer, 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

Inc. and Subsidiaries

Statements of Operations