U.S. Department of Energy Grants Theragenics Unique Access to Technology.

ATLANTA--(BUSINESS WIRE)--April 5, 1999--Theragenics Corporation (NYSE: TGX), the Atlanta-based cancer treatment producer, today announced an agreement granting it access to unique U.S. Department of Energy (DOE) technology for use in production of the Company's essential raw material, Palladium-103 (Pd-103).

This agreement will enable the Company to increase significantly its capacity, enabling Theragenics to cement its commitment to be the leading manufacturer of TheraSeed(R) - Pd-103 radioactive seed implants, which are used to treat prostate cancer. The expected increase in capacity to produce Pd-103, which is anticipated to come on-line in 2001, should allow for expanded use of its proprietary product, TheraSeed beyond its successful treatment of prostate cancer to new medical applications.

"This technology has the potential to end the specter of capacity constraints and change the future of Theragenics," said M. Christine Jacobs, Theragenics' chairman, president and chief executive officer. "More importantly, by dramatically increasing future capacity, this initiative should enable us to aggressively position TheraSeed for treatment of solid localized cancers other than prostate and to explore other uses of Pd-103 in non-oncologic disease states such as restenosis following coronary interventions, age-related macular degeneration as well as potential diagnostic applications."

For the past 12 years, Theragenics has produced TheraSeed - Pd-103 radioactive seeds for the treatment of early-stage prostate cancer. Ten-year scientific studies now confirm that seed implants are as effective in treating early stage prostate cancer as any other prostate cancer therapy, including more invasive surgery, and result in a significant reduction in adverse side effects, treatment time, recovery time and overall cost.

"This is just the beginning," says Jacobs. "Beyond the prostate cancer market with approximately 180,000 new cases reported annually, TheraSeed has been FDA licensed for the treatment of a broad array of solid, localized tumors. In addition to these, we will consider other cancer applications. Theragenics also will be able to pursue a range of other medical applications, either on its own or through strategic partnering arrangements."

This technology venture is part of a major DOE initiative to redirect Cold War assets to peacetime use and to cushion the economic impact of the dramatic defense cutbacks in areas such as Oak Ridge, Tenn. As part of this agreement, the DOE will provide Theragenics access to DOE assets for steps in the production process. Theragenics also has obtained a land lease through the Community Reuse Organization of Eastern Tennessee (CROET) and will construct a facility in Oak Ridge to house the equipment, infrastructure and work force necessary to support the production of Pd-103 using this technology. The Company expects to invest approximately $25 million over the next three years to build this manufacturing and research and development facility. "We are grateful to the DOE, CROET and Oak Ridge authorities for making available their unique capabilities and, most importantly, their talented people, for the cure of cancer," Jacobs added.

Jacobs continues, "Raw material production and market dynamics require substantial capital outlays from isotope manufacturers. This new initiative enables us to leverage existing equipment, expertise and facilities. The anticipated economies of scale, together with Theragenics' head start in this capital-intensive venture, should contribute to Theragenics becoming the low cost-producer."

"This is an exciting program for all involved," concludes Jacobs. "The people of Tennessee will benefit from additional jobs as the DOE re-deploys underutilized assets for peacetime uses. Ultimately, this initiative enables Theragenics to continue our commitment to providing patients with new hope through our product or extensions."

Except for historical information contained herein, the matters discussed in this press release are forward looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Actual results may be affected by, among other things, risks and uncertainties related to new process development cycles; risks and uncertainties related to new products and new product development cycles; risks and uncertainties related to adverse changes in program priorities and budgetary funding by the relevant governmental authorities; potential costs and delays in the start-up and refinement of technology and related equipment; potential equipment failure; research and development activities; compliance with regulatory requirements; effectiveness and execution of marketing and sales programs; opportunities for strategic alliances; continued acceptance of the product by the market; acceptance and efficacy of the product for other solid, localized tumors; introduction and/or availability of competitive products or technologies by others; third party reimbursement; physician training; and other factors set forth from time to time in the Company's Securities and Exchange Commission filings.

Theragenics Corporation, based in Norcross, Ga., is the manufacturer of TheraSeed, a rice-sized device used in the treatment of localized prostate cancer with a one-time, minimally invasive procedure. For additional information about the Company, call Theragenics' Investor Relations Department at [phone]. The Company's common stock is traded on the Ne w York Stock Exchange under the symbol TGX.