Isonics Corporation Meets Stockholder's Equity Requirement for Continued Nasdaq Listing.

GOLDEN, Colo. -- Isonics Corporation (Nasdaq: ISON), a provider of innovative solutions for the homeland security and semiconductor markets, announced today that based on the filing of its Form 10-KSB for the fiscal year ended April 30, 2006, which indicates Stockholders' Equity in excess of $2.5 million, believes it is compliant with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires a company to meet any one of the following requirements for continued listing:

a) Minimum stockholders' equity of $2.5 million, or

b) Minimum market value of listed securities of $35 million, or

c) Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.

The Company also announced today that this Form 10-KSB contains a standard, three-paragraph "clean opinion" without any discussion regarding substantial doubt about the Company's ability to continue as a going concern. Additionally, the Company has stated within this Form 10-KSB that it believes it has sufficient cash to finance its anticipated operations into its 2008 fiscal year.

"We are pleased that our financial condition has been significantly improved as a result of our recently completed financing," commented James E. Alexander, Isonics' Chairman & CEO. "This gives us the ability to continue to invest in our promising business units and to comply with one of the Nasdaq's requirements for continued listing."

On July 14, 2006, the Company announced that it had been informed by Nasdaq that it was not compliant with Nasdaq Marketplace Rule 4310(c) since the common stock has closed below the minimum $1.00 per share closing bid price for 30 consecutive days. Isonics has been granted until January 8, 2007, to achieve a closing bid price above $1.00 for a minimum of 10 consecutive business days. If Isonics fails to obtain compliance, as long as it meets the Nasdaq Capital Market initial listing criteria as set forth in Marketplace Rule 4310(c), except for the bid price requirement, the Company would be granted an additional 180 calendar days to obtain compliance.

"Whereas the Company has no direct control over the trading price of its securities, we believe that continued performance improvement and dedicated execution of our business plan should be reflected in an increase in our market value," concluded Mr. Alexander.

About Isonics Corporation

Isonics Corporation has three business divisions: (1) Homeland Security and Defense (2) Semiconductor Products and Services, and (3) Life Sciences. Isonics is a world leader in isotopically engineered materials and through its semiconductor division, it provides 300-millimeter products and services, wafer thinning and silicon-on-insulator wafers, for the semiconductor industry. Isonics' Life Sciences division markets and sells isotopes to the health care industry for the imaging and treatment of cancer. 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 www.isonics.com.

Cautionary Statement

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 estimates, assumptions, 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, 2006 and reports subsequently filed with the Securities and Exchange Commission, which include the Company's historical 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 these filings with the Securities and Exchange Commission.