Isonics Corporation Announces Strategic Initiatives for Fiscal Year 2005.Business Editors GOLDEN, Colo.--(BUSINESS WIRE)--April 26, 2004 Isonics Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ISON), a leader in the development of isotopically engineered semiconductor materials Semiconductor materials are insulators at absolute zero temperature that conduct electricity in a limited way at room temperature (see also Semiconductor). The defining property of a semiconductor material is that it can be doped with impurities that alter its electronic properties , a supplier of silicon-on-insulator (SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. ) wafers and isotopes An isotope a type of neutral atom but the number of neutrons is different from the number of protons in the nucleus. May be radioactive. Elements 1-15 Hydrogen
Mr. Alexander stated, "With our year-end coming to a close on April 30, and Isonics' strategic plan successfully being executed, we are enthusiastically announcing our strategic initiatives - which outline what we believe to be a compelling vision for the future of the company - for the upcoming 2005 fiscal year." During FY 2004 we successfully: -- Solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our life sciences segment by signing long-term supply agreements with existing and new customers for oxygen-18 and extending the joint production agreement with our Russian supplier, Global Scientific Technologies. -- Further developed our silicon-on-insulator (SOI) wafer manufacturing processes and signed a letter-of-intent to acquire the silicon wafer manufacturing business and related assets from EnCompass Materials Group Ltd. (EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. ) of Vancouver, Washington, where (if we complete the acquisition) we plan to implement that SOI technology in high-volume manufacturing. -- Made significant advances with high thermal conductivity thermal conductivity A measure of the ability of a material to transfer heat. Given two surfaces on either side of the material with a temperature difference between them, the thermal conductivity is the heat energy transferred per unit time and per unit silicon-28 in customer evaluations, one of which may lead to our first commercial win -- Received a U.S. patent for isotopically engineered wafers, "Semiconductor Wafers with Integrated Heat Spreading Layer" -- Solidified our position in the homeland security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States market through the Company's subsidiary IUT IUT Institut Universitaire de Technologie IUT Institut Universitaire de Technologie (French: University Institute of Technology) IUT Implementation Under Test IUT Isfahan University of Technology IUT International Union of Tenants Detection Technologies and its advanced neutron-based technology for detection of explosives and chemical/biological agents -- Raised over $5.5 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. which has positioned the Company for boldly executing our strategic initiatives Strategic Initiative 1 - Commitment to Grow the Life Sciences Segment Our Life Sciences segment, which serves the healthcare industry by providing products for the imaging and treatment of cancer, is a solid business. Our leading product is Oxygen-18 ,which is the essential raw material that supports the fast growing positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. (PET) imaging technology. This business, while solid, has shown growth only commensurate with the industry. In fiscal 2005, we will begin executing plans that, we believe, will triple segment revenues within three years while generating improved gross margins. We will do this by executing plans to broaden our product offerings and by vertically integrating, either forward or backward or both, to add value to our products and better serve our customers. Related to this will be the diversification of isotope isotope (ī`sətōp), in chemistry and physics, one of two or more atoms having the same atomic number but differing in atomic weight and mass number. The concept of isotope was introduced by F. supply, which now is exclusively from the former Soviet Union, but will be expanded to European and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sources as well. However, we will continue to seek those new isotope products from Russia that also complement the objectives of this strategic initiative. Strategic Initiative 2 - Invest in Silicon-28 Commercialization Isotopically-pure silicon-28 has superior thermal properties compared to normal silicon. As heat is becoming an ever-increasing problem to chip designers, silicon-28 is attracting more and more interest. Customers are beginning to see meaningful temperature benefits in actual products made from Isonics' supplied silicon-28 epitaxial wafers. It appears that the more silicon-28 built into a wafer, the larger the thermal benefit obtained. Isonics believes that silicon-28 wafer can be sold at a substantial premium to the price of a normal silicon wafer silicon-28 and still be a commercial success. However, pricing will dictate the amount of market that we may penetrate. Therefore, Isonics will institute a silicon-28 cost reduction strategic initiative. We will invest in commercializing a promising new isotope enrichment technology as well as improving the economics of the mature gas centrifuge The gas centrifuge is a hyper-centrifuge used to separate gases. Its most common use is to produce enriched uranium. For uranium enrichment it requires far less energy to achieve the same separation than the older gaseous diffusion process that it has mostly replaced. technology, which presently provides our silicon-28. We will also look at ways to improve the efficiency of deposition of epitaxial silicon-28. Doubling the efficiency from the industry typical 10% to 20% by process and equipment innovations would reduce our cost by 50%. To the extent we are successful in reducing costs, our market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and profitability will be greatly influenced. Strategic Initiative 3 - Silicon-on-Insulator Wafer Manufacturing Isonics' leadership position in its market segments is not only dependent upon superior materials, but the processes used to manufacture products, particularly in the price-sensitive semiconductor market. Last month, we announced that we signed a letter of intent to acquire the silicon wafer manufacturing business and related assets from EnCompass Materials Group Ltd. (EMG) of Vancouver, Washington
Vancouver, Washington is a city on the north bank of the Columbia River, in the state of Washington, USA. It is the county seat of Clark County. . EMG manufactures silicon test wafers and provides wafer re-cycling services for leading semiconductor manufacturers. We want to acquire this company to exploit its people and manufacturing systems to produce higher margin SOI wafers using Isonics' developed intellectual property, such as our Sigma I process that is capable of transferring silicon layers only tens' of nanometers in thickness. With this ISO-qualified manufacturing facility under our control, we can then confidently accept large commercial orders, which we now routinely decline. Growth of revenues in the segment will play a major role in driving the overall company toward profitability this fiscal year. Strategic Initiative 4 - Homeland Security - Neutron Detection Neutron detection is the effective detection of neutrons entering a well-positioned detector. There are two key aspects to effective neutron detection: hardware and software. Technology Isonics, through its IUT Detection Technologies subsidiary, has been quietly promoting its technology for neutron-based detection technology that we believe is useful for identification of explosive and chemical and biological agents. In fiscal 2005 we are committed to actualizing the value of this technology to our shareholders. We are pursuing strategic relationships from leading industry participants, as well as direct financial investments into the subsidiary. No specific plan has been established at this time, but management is dedicated in fiscal 2005 to completing one or more transactions that will provide the financial and personnel resources necessary to bring this technology to the commercial level. Summary Isonics is a diverse technology company, with burgeoning opportunities in semiconductors, pharmaceuticals, and homeland security. Much of our technology portfolio is based on nanotechnology processes or are enablers for the manufacture of nanotechnology devices. Our motto -- "building businesses one atom at a time" -- is reflective of this. Mr. Alexander continued: "We are extraordinarily enthusiastic about our early successes and the numerous milestones we have achieved to date. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , Isonics looks forward to substantial growth in revenues, earnings and, ultimately, in shareholder value." About Isonics Corporation Isonics Corporation is divided into two segments: (1) Isonics Semiconductor and (2) Isonics Life Sciences. Isonics is a world leader in isotopically engineered materials and through its semiconductor division produces isotopically pure silicon-28 chemicals and wafers for the semiconductor industry. Through advances in nanotechnology, the Company is also focused on research and development opportunities for further, value-added product and application development. Isonics' Life Sciences division markets and sells stable isotopes stable isotope n. An isotope of an element that shows no tendency to undergo radioactive breakdown. for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and radioisotopes and stable isotopes, such as oxygen-18 for positron emission tomography (PET) imaging. Stable isotopes can be thought of as ultra pure materials. This high degree of purification provides enhanced properties as compared to natural materials. Additional information may be obtained at the Company's Web site at http://www.isonics.com. Except for historical information contained herein, this document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. 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 10-KSB for the year ended April 30, 2003, and its quarterly report on Form 10-QSB for the nine months ended January 31, 2004, both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission. |
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