News Release
FOR RELEASE JULY 21, 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
(714) 252-8440 (408) 260-0155
ISONICS CORPORATION COMPLETES
CHEMOTRADE GMBH ACQUISITION
SAN JOSE, CA (July 21, 1998) . . . Isonics Corporation (OTC: ISON) reported
today that it completed its previously announced acquisition of Dusseldorf,
Germany-based Chemotrade GmbH for $2.5 million in a combination of cash, notes,
and restricted Isonics common stock. Additional consideration of $1.1 million is
payable over the next three years based on Chemotrade meeting future
profitability targets. Chemotrade, a supplier of both stable and radioactive
isotopes to customers world-wide, had sales of over $7 million for its fiscal
year ended December 31, 1997 and has been profitable in each of the past 7
years. The Company will operate as a wholly owned subsidiary of Isonics with
existing management remaining in place.
Isonics President & CEO James E. Alexander commented, "The acquisition of
Chemotrade not only opens the European market and provides access to key
customers for Isonics products, it also expands our product lines to include
radioisotopes used in medical diagnostics and therapeutics. Our goal is to
leverage Chemotrade's current European market position while implementing plans
to bring our stable isotope production capabilities to western Europe."
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
risks inherent in acquiring a company in Chemotrade's industry (e.g., assumption
of known and unknown liabilities, including environmental liabilities). 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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4010 Moorpark Ave. Suite 119 o San Jose CA 95117
(408) 260-0155 o Fax (408) 260-2110