1. Pioneering Internal Radiation Therapy with Cesium131
Pioneering Internal Radiation Therapy with Cesium131
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2. Forward Looking Statements
This presentation contains forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology.
These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks outlined under “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on September 28, These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this presentation to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.

3. Corporate Highlights
Emerging market leader: internal radiation therapy of cancer
Exclusive patents: proprietary separation process for the Cesium131 isotope
FDA approved for use in all body sites and tumor types
A superior solution for brachytherapy of cancer
Cesium131 products: safe and effective results compared with:
external radiation and surgery
internal radiation therapy with other isotopes
Multiple cancer indications in US and EU markets
Current: Prostate, Lung, Brain, Head/Neck, Ocular, Colon and Gyn
Pipeline: Breast, Esophageal, Pancreatic
Additional market expansion
New GliaSite® product line for treatment of brain cancer
Emerging market leader for internal radiation therapy of cancer
Based on exclusive patents for a proprietary separation process for the Cesium131 isotope
Lead products launched and markets growing
FDA cleared for use in all body sites and tumor types
A superior solution for brachytherapy of cancer
Cesium131 products offer safe and effective results compared with:
external radiation and surgery
internal radiation therapy with other isotopes
Multiple cancer indications in US and EU markets
Current: Prostate, Lung, Brain, Head/Neck, Ocular, Colon and Gyn
Pipeline: Breast, Esophageal, Pancreatic
Additional market expansion in combination with various existing delivery methods and devices
New GliaSite® product line for treatment of brain cancer

4. A Better Solution
Dr. Dattatreyudu Nori, professor and radiation oncologist-in-chief at Cornell University says:
“Cesium131 brachytherapy is nothing less than a new standard of care for treatment of prostate cancer, giving patients an improved quality of life and peace of mind.”
Medical News Today – UK, January 8th, 2006
Dr. Dattatreyudu Nori, professor of clinical radiology at Weill Medical College of Cornell University and radiation oncologist-in-chief at New York-Presbyterian/Weill Cornell says:
A pioneer in the field of brachytherapy, Dr. Nori was among those who helped introduce Iodine-125 in 1970 and Palladium in 1985.
Dr. Nori is now doing lung cases.

5. Cesium131 Highlights
Offers superior results that beats the competition:
High energy; and
Short (9.7 day) half life
Delivers effective dose 2-6 times faster than Pd103 and I125
Minimally invasive
Cesium131 implantable seeds, placed in or around the tumor, or on the surgical margins of a suture site
GliaSite balloon catheter and Lung Mesh / Suture are placed at time of surgical tumor removal.
Cesium131 isotope offers superior results compared to competitive isotopes due to:
High energy; and
Short (9.7 day) half life
Delivers effective dose times faster than Pd103 and I125
IsoRay manufactures Proxcelan™ Cs131 implantable seeds, used alone or in combination with devices such as mesh, strands and sutures
Proxcelan™ Cs131 seed implant is placed in or around the tumor, or on the surgical margins of a suture site
Minimally invasive
Seeds are placed via needle, sutures, or mesh, and can be directly placed at time of tumor removal

6. Brachytherapy “seeds” SAV I Catheter for Breast Cancer
Cesium131
Brachytherapy “seeds”
Source: Oak Ridge Associated Universities
LDR Brachytherapy for Prostate Cancer
SAV I Catheter for Breast Cancer
Source: Cianna Medical

7. Cesium131 Track Record
Over 7,000 prostate cancer cases treated with Cesium131
98% success (measured by freedom from biochemical failure)
New 5 year prostate cancer treatment data indicate strong efficacy
Leading medical institutions are currently securing patients for treatment of the following cancer indications:
Prostate
Lung
Brain
Ocular
Colon
Head and Neck
GYN

8. Benefits of Prostate Seed-Implants
Source: Frost Sullivan Report 2004

9. Advantages of Cesium131
High Energy and Short Half Life Make Cesium131 the Isotope of Choice for Treatment of Many Disease States
Higher Initial Energy and Faster Delivery Time than Pd103 and I125
Dose is delivered in advance of absorption of delivery vehicles
Cancer cells have less opportunity to repopulate
Greater flexibility due to reduced total radiation to healthy tissues
Uniform and Symmetrical Radiation Penetration
Improved dose distribution (homogeneity)
Improved placement positioning
Single Application
Autoradiograph of an IsoRay seed (4.5 mm)
High Energy and Short Half Life Make Cesium131 the Isotope of Choice for Treatment of Many Disease States
Higher Initial Energy and Faster Delivery Time than Pd103 and I125
Dose is delivered in advance of absorption of delivery vehicles (mesh and
suture materials)
Cancer cells have less opportunity to repopulate
Greater flexibility due to reduced total radiation to healthy
tissues
Uniform and Symmetrical Radiation Penetration
Improved dose distribution (homogeneity)
Improved placement positioning
Single Application

10. Brachytherapy Implant Comparative Analysis
ISOTOPE
HALF-LIFE
AVG THERAPEUTIC ENERGY
TOTAL DOSE
ANISOTROPY FACTOR
90% DOSE DELIVERED
Cs131
9.7 days
30.4 keV
115 Gy
.969
33 days
Pd103
17.5 days
20.8 keV
125 Gy
.877 (TheraSeed® 200)
58 days
I125
60 days
28.5 keV
145 Gy
.930 (OncoSeed® 6711)
204 days
The above information is considered standard dosing information. Such information is governed by the FDA and is required to accompany any product that is distributed to a customer and intended for use.  Acquisition of this information can be obtained from the company that manufactures each listed product.

11. GliaSite ® : Treatment of Brain Cancer
GliaSite® Balloon Catheter with Therapeutic Isotope
GliaSite® is IsoRay’s newest product offering
The only FDA-approved balloon catheter for brachytherapy of brain cancer
Product launch preparations underway in the US
Reimbursement of the GliaSite® system with I125 is already established for both in-patient and out-patient settings
European distribution agreement is completed
Received FDA clearance and CE Mark is in the final approval process
New Liquid Cesium131 benefits expected to enhance market adoption rate, size and profit margin
GliaSite® is IsoRay’s newest product offering
The only FDA-approved balloon catheter for brachytherapy of brain cancer
Product launch preparations underway in the US
Reimbursement of the GliaSite® system with I125 is already established for both in-patient and out-patient settings
Negotiating European distribution agreements
Seeking FDA clearance for new liquid form of Cesium131 as alternative to the radioisotope Iotrex™ (I125) with GliaSite®
Cesium131 benefits expected to enhance market adoption rate, size and profit margin

12. Cancer Facts
There were an estimated 1,479,3501 new cases of cancer diagnosed in the U.S. in 2010:
Prostate - 217,730
Lung - 222,520
Head and Neck - 52,540
Brain - Primary (GBM)- 22,020
- Metastasis - 150,000
- Meningioma - 10,000
Eye and Orbit - 2,480
Breast - 209,000
Colon - 102,900
1- Cancer Statistics, 2010 Jemal et al., Cancer Management: A Multidisciplinary Approach 11th Edition (2008), American Cancer Society 2010

13. IsoRay Market Potential
Head and Neck:  2,000 potential cases ($10,000,000.00)
Lung:   4,000 potential cases ($20,000,000.00)
Prostate: 13,000 potential cases ($65,000,000.00)
Ocular Melanoma: ~200 potential cases ( $350,000.00)
Brain Cancer (GBM): ~2,000 potential cases ($20,000,000.00)
Metastatic : ~15,000 potential cases ($150,000,000)
Meningioma : ~500 potential cases ($5,000,000)
Breast: ~10,000 potential cases ($50,000,000.00)
*assuming the current reimbursement rates (which are subject to annual review and adjustment), remain constant
Head and Neck:  2,000 potential cases ($5,950,000.00)
(2000 cases x $119 x 25 seeds)
Lung:   4,000 potential cases ($19,040,000.00)
(4000 cases x $119 x 40 seeds)
Prostate: 13,000 potential cases ($79,560,000.00)
(13,000 cases x $72 asp x 85 seeds)
Ocular Melanoma: ~200 potential cases ( $350,000.00)
(200 cases x $119 x 15 seeds)
Brain Cancer (GBM): ~2,000 potential cases ($7,140,000.00)
(2000 cases x $119 x 30 seeds)
Breast:  10,000 potential cases ($47,600,000.00)
(10,000 cases x $199 x 40 seeds)
*assuming the current reimbursement rates (which are subject to annual review and adjustment), remain constant
Total IsoRay Market Potential:$320 Million*

14. Corporate Strategy Grow prostate cancer market share
Leverage new positive 5 year data to increase adoption rates
Aggressively market the new GliaSite® system
revenue expansion in the brain cancer treatment market
Capture the lung cancer market
Independent multi-center study now underway
Promote Cesium131 for treatment of colon, head and neck cancer
Develop breast and esophageal cancer market
Evaluate use of Cesium131 in combination with the SAV-I void filling device and others for treatment of breast cancer
Expand marketing and distribution in US and the EU
Continue to grow prostate cancer market share
Leverage new positive 5 year data to increase adoption rates
Aggressively market the new GliaSite® system for revenue expansion in the brain cancer treatment market
Capture the lung cancer market
Independent multi-center study now underway
Promote Cesium131 for treatment of colon, head and neck cancer
Develop breast and esophageal cancer market
Evaluate use of Cesium131 in combination with the SAV-I void filling device and others for treatment of breast cancer
Expansion of marketing and distribution in US and the EU

15. Near Term Milestones
Events to broaden prostate and other cancer markets
Independent publication of 5 year data for prostate treatment
Initiation of market use of Cesium131 for “dual therapy” in high risk patients
New MD Anderson clinical comparison of Cesium131 with other isotopes
Initial Launch of GliaSite marketing and scientific presentations
Expand awareness of our Lung Mesh treatment
Submission for FDA approval of new liquid Cesium131 formulation

16. Near Term Milestones Multiple GliaSite® Events
CE mark approval by notified body
US and EU launch of GliaSite® !
Expansion to new cancer treatments
Breast cancer : Integrate Cesium131 within the SAV-I catheter
Esophageal cancer : Utilize Cesium131 in combination with an esophageal stent
Pancreatic cancer : Develop device for seed delivery

17. Financials Year Ended June 30 US $ 2011 2010 Product Sales 5,238,973
5,286,084
Gross Income
1,157,417
725,797
OpEx
4,120,405
4,734,697
Operating Loss
(2,962,988)
(4,008,900)
Net Loss
(2,842,213)
(4,033,856)
Loss per Share
(0.11)
(0.18)
Cash/Equivalents
$2,112,254
Operating loss reductions from decreasing cost of product and sales, and large reduction in cash burn
Continuing trend for increased margins as well as new revenue growth projected with new uses and products in non-prostate cancer applications

18. Summary Non-prostate applications grew 139% from FY2010 to FY2011
Positioned to be the leader for brachytherapy cancer treatment with a $320+ million potential market share
Multiple product and market indications for cancer
Strong pipeline of near-term milestone events
Non-prostate applications grew 139% from FY2010 to FY2011
Positioned to be the leader for brachytherapy cancer treatment with a $150+ million potential market share
Enabled by exclusive patent position for Cs-131 separation process
Broadening to other major cancer markets
Multiple product and market indications for cancer
Current leading prostate cancer treatment, with active expansion to lung and brain cancer treatments
GliaSite® system to enable new brain cancer treatment
FDA approved to take Cesium131 to all cancers
Strong pipeline of near-term milestone events

19. ISORAY WHERE THE FUTURE IS NOW Thank You!