Unassociated Document NEWS RELEASE for

NEWS RELEASE for September

Inc. Announces Fiscal Year 2009 Results

Washington (September 24, 2009) IsoRay Inc. (AMEX:ISR), a medical isotope

company focused on the treatment of lung cancer, head and neck tumors, prostate

cancer and other malignant disease through use of its proprietary radioisotope

technology, announces today its financial results for the quarter and year ended

FY2009 gross and net loss included a $425,434 impairment charge relating to a

license. Excluding this one-time write off, IsoRay would have

recognized a gross margin of $72,102 and a net loss of $5,735,407 in

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

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

implant in October 2004 over 4,000 prostate cancer patients have been treated

with Proxcelan Cesium-131 Brachytherapy seeds.

Company had cash and short-term investments of $4,670,564 as of June 30,

Babcock, IsoRay CEO, stated "This past year has seen the culmination of

numerous changes at IsoRay. Although it has been a challenging year

for prostate brachytherapy in general, and also for IsoRay, we are very

encouraged by where we stand today."

first two months of the first quarter of fiscal year 2010 the company has seen

dramatic improvements in the gross margin, net loss, and cash burn rate over the

comparable periods of fiscal year 2009. From July 1, 2009 through

August 31, 2009, based on our unreviewed preliminary internal results, gross

margin is approximately 288% higher, net loss is approximately 47% lower, and

cash used in operations is approximately 66% lower than the comparable two month

period of fiscal year 2009. These gross margin, net loss and cash used in

operations percentages 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, 2009.

milestones achieved during the past fiscal year in the areas of restructuring,

improvements and new product development that provide the company a solid

platform to move forward include:

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 or prostate cancer(c) and ocular melanoma(d),

among other cancerous conditions.

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

Armpilia 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

DeFoe 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

Bice 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

Melhus CS, Rivard MJ. COMS eye plaque brachytherapy dosimetry simulations

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

Safe Harbor Statement

Statements 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 IsoRay will continue to be able to reduce

operating costs and increase revenue, whether expansion into new markets will be

successful or result in improved sales, whether IsoRay will continue to meet

Health Canada's requirements and expectations to sell Proxcelan in Canada,

whether IsoRay will be able to start and complete its proposed clinical trial in

Canada, whether IsoRay will be successful in launching any new products and

whether such new products will result in cost increases, whether the hiring of

the Vice President of Sales and related changes in IsoRay's sales and marketing

strategy will result in improved sales, whether the company's efforts at ASTRO

will result in expansion in the lung market, whether results of future studies

and protocols will support the findings from initial studies, 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 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, and other risks detailed from time to

time in IsoRay's reports filed with the SEC.

IsoRay Inc. and Subsidiaries

Consolidated Statements of