Unassociated Document For Release

APPOINTS NEW CHAIRMAN AND INTERIM CEO AND ANNOUNCES

CHANGES UPON INCUMBENT RESIGNATION

Washington - IsoRay Inc. (AMEX: ISR), a

isotope company focusing on the treatment of prostate and other malignant

diseases through use of its proprietary radioisotope technology, announced

that director Dwight Babcock has been appointed Chairman of the Company's Board

of Directors, and will also be Interim Chief Executive Officer, following the

resignation of Roger Girard for personal reasons, who has been Chairman and

same time, the Company announced that Robert R. Kauffman, also a Director of

Company, has accepted an appointment as Vice Chairman. Lori Woods, currently

Vice President/Marketing, will serve as Acting Chief Operating Officer, with

direct responsibility for day-to-day operations including marketing, sales

manufacturing. Director David Swanberg will continue in his capacity as

Executive Vice President responsible for manufacturing, engineering and R&D.

Chief Financial Officer Jonathan Hunt will report directly to Interim CEO

commented, "We want to thank Roger Girard for his years of service, and to wish

him well in his future endeavors. Our primary immediate objectives will be

accelerate US sales growth, reduce manufacturing costs, and streamline SG&A

expense. We will also continue to pursue new international opportunities,

particularly our recent joint venture initiative in Russia. Further, as we

forward, we are very fortunate to be able to rely on the significant knowledge

and experience of Lori, David, Jonathan and other members of the dedicated

pre-eminence of Cesium 131 is increasingly recognized by the medical community,

and as our clinical studies approach the 3-year mark, we believe Cesium 131

become a new standard of care in brachytherapy. The next few years will, we

believe, see the development of IsoRay into an important medical provider for

the millions of prostate cancer patients here and around the world, and for

other cancer patients as trials are completed in other areas," he added.

served as Chairman and Chief Executive Officer of Apex Data Systems, Inc.,

information technology company, since 1975. Apex Data Systems automates the

administration and claims adjudication needs of insurance companies both

nationally and internationally. Mr. Babcock was formerly President and CEO

Babcock Insurance Corporation (BIC) from 1974 until 1985. BIC was a nationally

recognized third party administrator operating within 35 states. Mr. Babcock

knowledge and experience in the equity arena and has participated in various

activities within the venture capital, private and institutional capital

markets. Mr. Babcock studied marketing and economics at the University of

Arizona where he currently serves on the University of Arizona Astronomy

has served as Chief Executive Officer and Chairman of the Board of Alanco

Technologies, Inc. (Nasdaq: ALAN), an Arizona-based information technology

company, since July 1, 1998. Mr. Kauffman was formerly President and Chief

Executive Officer of Nasdaq-listed Photocomm, Inc., from 1988 until 1997 (since

renamed Kyocera Solar, Inc.). Photocomm was the nation's largest publicly owned

manufacturer and marketer of solar electric power systems with annual revenues

in excess of $35 million. Prior to Photocomm, Mr. Kauffman was a senior

executive of the Atlantic Richfield Company (ARCO) whose varied responsibilities

included Senior Vice President of ARCO Solar, Inc. and President of ARCO

Plastics Company. Mr. Kauffman earned an M.B.A. in Finance at the Wharton

School of the University of Pennsylvania, and holds a B.S. in Chemical

Engineering from Lafayette College, Easton, Pennsylvania.

joined the Company in July 2006 and has over 20 years experience in medical

device technology and healthcare services. Ms. Woods served as the CEO of

Pro-Qura, a medical services company focusing on brachytherapy quality assurance

and education, from 2002 until joining the Company. Prior to this, she served

the Vice President of Sales at ATI Medical in 2002, Vice President of Sales

West and Vice President of Marketing and Business Development for Imagyn Medical

Technologies from 2000 to 2002, and Director of Business Development for Seattle

Prostate Institute from 1998 to 2000. She holds a Bachelor of Science degree

Business Administration - Marketing from Loma Linda University.

has more than 22 years experience in engineering and materials science, nuclear

waste and chemical processing, aerospace materials and processes, and

environmental technology development and environmental compliance. Beginning

November 1995 and until January 2004, Mr. Swanberg was employed full time as

Chemical/Environmental Engineer for Science Applications International

Corporation working on a variety of projects including nuclear waste research

and development. Mr. Swanberg joined IsoRay's predecessor company in March

1999 on a part-time basis and has held management positions in the IsoRay

companies since 2000. Mr. Swanberg began full-time employment with IsoRay in

February 2004. He has been instrumental in the development of IsoRay's initial

product, the Cs-131 brachytherapy seed, including interfaces with technical,

regulatory, and quality assurance requirements. With IsoRay and its predecessor

companies, he has managed the development and production of radioactive seeds

support testing to meet NRC and FDA requirements, provided technical guidance

for characterization of the IsoRay seed to meet AAPM Task Group 43 protocols,

and coordinated production and testing of non-radioactive seeds to conform

ISO standards for brachytherapy devices. He holds an MS in Chemical Engineering

and is a licensed professional engineer in the state of Washington.

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; whether IsoRay's marketing strategies will result in increased

sales; IsoRay's manufacturing needs and capabilities; whether Cs-131 will be

used to treat other cancers in the future; whether we will be successful in

locating a qualified candidate to serve as CEO; whether physicians will continue

to adopt and use Cs-131; future expansion plans into Russia and other countries;

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