Unassociated Document Press Releases NEWS RELEASE for

RELEASE for February 16, 2010 at 4:30PM EST

Inc. Reports Second 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 second quarter of fiscal year 2010, ended December 31,

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.

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

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;

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

Inc. and Subsidiaries

Statements of Operations