*isoray Acquires Exclusive Worldwide License For Liquid Iodine

IsoRay, Inc. ISR announced today that it has completed a license agreement with Dr. Reddy's Laboratories RDY for exclusive worldwide licensing rights to Iotrex^®, a liquid iodine radiation, for use in brain cancer treatment. Iotrex^® is a critical component in the GliaSite^® radiation therapy system, the world's only FDA-cleared balloon catheter device used in the treatment of many forms of brain cancer. IsoRay has exclusive worldwide distribution rights to the GliaSite^® therapy system. The Iotrex^® licensing agreement is a major step in the process needed to allow IsoRay to make its submission to the FDA for final approval as it moves toward the anticipated launch of its GliaSite^® sales initiative in August. GliaSite^® sales are expected to be an important contributor to revenue for the Company in the next two to three years. Iotrex^® will allow IsoRay to address an immediate market opportunity and patient needs, while the Company proceeds toward approval for use of its proprietary liquid Cesium-131 for use in the GliaSite^® therapy system.