[LOGO] Isonics
Corporation
FOR RELEASE APRIL 29, 1998 AT 7:30 AM EDT
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Contact: Matt Clawson (Investors) or Paul J. Catuna
Owen Daley (Media) Vice President, Finance
Allen & Caron, Inc. Isonics Corporation
(949) 252-8440 (408) 260-0155
ISONICS CORPORATION SIGNS AGREEMENT TO ACQUIRE
INTERNATIONAL PROCESS RESEARCH CORPORATION
SAN JOSE, CA (April 29, 1998) . . . . . Isonics Corporation (OTC: ISON)
announced today that it has signed a definitive agreement to acquire Golden,
CO-based International Process Research Corporation (Interpro), a privately held
company, in exchange for 354,000 restricted shares of Isonics common stock. The
transaction is expected to close within the next month subject to customary
closing conditions. According to the announcement by Isonics President and CEO
James E. Alexander, the Interpro acquisition is a key element in the Company's
expansion strategy. It will provide Isonics with in-house processing and
manufacturing capabilities for its core-market depleted zinc (DZ) product and
for developing enriched isotopes for other applications, including diagnostic
breath tests and imaging for the healthcare market.
Interpro, which has been doing business as Colorado Minerals Research
Institute, is a contract research, process development, and materials processing
operation with 25 employees. Results for its year ended December 31, 1997
reflected sales of $2.3 million with revenue for the first calendar quarter of
1998 exceeding $900,000. Interpro will operate as a wholly owned subsidiary of
Isonics from its current location which includes office, laboratory and pilot
plant facilities as well as ample room for expansion. Further terms were not
disclosed.
James E. Alexander Isonics' President commented, "Interpro has been the
primary supplier of processing services for our core DZ product for the past
five years." DZ is used as an additive in nuclear power plants to reduce
corrosion and cracking of key components and to reduce radiation exposure to
plant workers. Alexander went on to state, "The acquisition of this important
supplier is a logical step in the continued growth and development of Isonics as
we drive to bring more valued-added manufacturing under our direct control.
Interpro adds revenue, profits, a talented management team and a skilled work
force to Isonics. It provides an infrastructure platform for expansion into
domestic production of stable isotopes, such as carbon-13 and for valued-added
processing of a range of high purity materials. Interpro is the first of a
number of business and technology acquisitions the Company intends to pursue
which are designed to shift manufacturing focus from Russia and Georgia to the
United States and Europe."
Interpro Owner and President Robert H. Cuttriss, Ph.D., noted, "Having
worked closely with Isonics for years, we have gained a good understanding of
their commitment to the development of advanced materials and chemicals and
their considerable opportunities in the isotope marketplace. The combination of
these factors with the strategic and operational benefits of the Interpro
organization and facilities make this acquisition an excellent vehicle for
future growth."
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4010 Moorpark Ave. Suite 119 * San Jose CA 95117
(408) 260-0155 * Fax (408) 260-2110
ISONICS CORPORATION SIGNS AGREEMENT TO ACQUIRE
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Isonics is a specialty chemical and advanced materials company which
develops and commercializes products based on enriched stable isotopes. Stable
isotopes can be thought of as ultra-ultra pure materials. This high degree of
purification provides enhanced performance properties compared to normal
materials. Stable isotopes have commercial uses in several areas, including
energy; research, medical diagnostics, and drug development; product tagging and
stewardship; semiconductors; lasers; and optical materials.
Except for historical information contained herein, this document contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown risks
and uncertainties that may cause the Company's actual results or outcomes to be
materially different from those anticipated and discussed herein, including the
risk that the acquisition may not close due to a variety of reasons, the risks
inherent in acquiring a company in Interpro's industry (e.g., assumption of
known and unknown liabilities, including environmental liabilities), and the
risk that future business and technology acquisitions may not occur for a
variety of reasons, including the unavailability of financing. Further, the
Company operates in industries where securities values may be volatile and may
be influenced by regulatory and other factors beyond the Company's control.
Other important factors that the Company believes might cause such differences
are discussed in the risk factors detailed in the Company's Prospectus, dated
September 22, 1997, and its recent 10-QSB's filed with the Securities and
Exchange Commission. In assessing forward-looking statements contained herein,
readers are urged to carefully read all cautionary statements contained in those
filings with the Securities and Exchange Commission.
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