Unassociated Document For Immediate Release

Immediate Release: November

Inc. First Quarter Fiscal Year 2008 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 ended

revenue in Q1-FY2008 increased by 81% to $1,855,719 over Q1-FY2007. Medical

centers ordering in Q1-FY2008 increased to 49, or a 113% increase from the

centers that ordered in Q1-FY2007. The increase in Proxcelan sales during the

quarter can be attributed to several factors, including an increase in the

Company's direct sales team (from three to eleven sales associates from

Q1-FY2007 to Q1-FY2008), and the increased number of medical centers ordering

the Company's revenues were generated through sales of Proxcelan Cesium-131

seeds for the treatment of prostate cancer. Since the first patient implant

October 2004 through October 2007, approximately 1900 prostate cancer patients

had been treated with Cesium-131 (123 patients having been treated in October

Company's net loss decreased from $2,927,435 in Q1-FY2007 to $2,159,401 in

Q1-FY2008, an improvement of 26% quarter over quarter.

Company had cash of $6,448,058 and short-term investments of $8,972,430 as

have in place a robust production platform--which was developed well ahead

schedule," said IsoRay Chairman and CEO Roger Girard. "Our ongoing goal is to

drive sales growth by continuing to expand our sales pipeline and supporting

physician customers through the licensing process."

pipeline during Q1-FY2008 included 10 new sites or customers that collectively

placed 35 orders for Proxcelan Cesium-131 brachytherapy seeds during the

quarter. Thirteen sites received amended Radioactive Material (RAM) licenses;

sites have submitted RAM licenses for amendment and 18 potential new sites

begun the process for amending their license. Currently, the sales team is

up of 11 sales personnel covering most of the United States.

Centers for Medicare and Medicaid Services (CMS) on November 1, 2007 released

its final payment rates for brachytherapy seeds. The final non-stranded rate

seed for Cesium ($64.08) was an improvement of $12.73 over the proposed rate

($51.35). The final rate per seed for stranded was unchanged ($97.72) from

proposed rate. The increase for non-stranded Cesium-131 seeds marked the largest

increase in any low dose rate (LDR) seed pricing category, including Iodine-125

and Palladium-103 radioisotope seeds. The CMS non-stranded and stranded seed

payment rates for brachytherapy sources are scheduled to take effect January

addition, IsoRay is applying for Canadian and EU certifications to sell the

Proxcelan seed in those countries.

previously announced, a conference call is scheduled for 2:00 p.m. Pacific

(5:00 p.m. Eastern Time) today to discuss this earnings release. To participate

in the call, dial 1-800-944-8766 and provide conference ID # 39141. This call

will also be webcast and can be accessed from the Company's website. Simply log

on to www.isoray.com

select Investor Information, then Webcasts, and First Quarter Fiscal 2008

Earnings. The webcast will be available for replay on www.isoray.com

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 September 30, 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

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

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

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

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

Brachytherapy: An Initial Report. Int. J. Radiation Oncology Biol. Phys. 2005;

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 we will be

successful in obtaining licensure and meeting other regulatory requirements

sell our product outside of the United States, and all other statements in

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.

the protections of the safe harbor provisions of the PSLRA. It is important

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

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

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

Hunt, Chief Financial Officer