Isonics Receives Warning Letter from Nasdaq

GOLDEN, Colo. -- Isonics Corporation, a provider of innovative solutions for the homeland security and semiconductor markets, announced today that it received a staff determination letter from the Nasdaq Stock Market Listings Qualification Department notifying the Company that its common stock is not in compliance with the $1.00 per share minimum bid price requirement for continued inclusion under Nasdaq Marketplace Rule 4310(c)(4) and is subject to delisting from the Nasdaq Capital Market. Because (based on the most recently published financial statements) the Company does not have more than $5 million in shareholders’ equity, it is not eligible for the automatic 180-day extension for compliance provided by Marketplace Rule 4310(c)(8)(D).

Under the Nasdaq rules, Isonics is entitled to and will, prior to January 17, 2007, request a hearing with a Nasdaq Listings Qualification Panel to attempt to obtain an additional period to regain compliance with the Nasdaq listing requirements. The Company expects to present alternative plans for regaining compliance with the Nasdaq listing requirements. Pending a decision by the Panel, the Company’s shares will remain listed on the Nasdaq Capital Market. If the Panel does not find one of the Company’s approaches to be acceptable, it could result in an immediate delisting of the Company’s common stock. In such an event, the Company expects to seek a listing on Nasdaq’s Over-the-Counter Bulletin Board.