This sound pretty good pholx, good for a 10% bump.
'zyme
Wednesday June 13, 7:33 am Eastern Time
Press Release
Isonics Provides Shareholder Update
SANTA CLARA, Calif. & GOLDEN, Colo.--(BUSINESS WIRE)--June 13, 2001--Isonics Corporation (NasdaqSC: ISON/ISONW)(Frankfurt: IO9) a leader in the development of isotopically engineered materials and silicon-28 for semiconductor device manufacture provided this open letter to shareholders by James E. Alexander, Isonics' president and CEO:
Dear Shareholder,
I am taking this opportunity to update you on a number of issues and to publicly answer some of the questions I have received from individual shareholders.
In particular, our May 30, 2001 press release regarding the joint development agreement with an un-named microprocessor manufacturer has resulted in many E-mails and phone calls to the Company. Concern was expressed that we did not identify the development partner because no agreement was reached or because the partner was of little consequence. I can assure you that on both accounts this is not the case. The agreement prevents us from divulging the identity of our partner without their approval. We have presented them with a draft release and are working with them now to be able to announce more details of the actual program.
In May, Isonics participated in a Russian symposium organized by the Russian Academy of Science entitled ``Super Pure Mono-isotopic Silicon - Production, Analysis and Characteristics''. Our involvement with Russian scientists in the past has resulted in a number of important accomplishments, such as lowering costs and simplifying manufacturing processes. Participation in such events allows Isonics to encourage independent work and monitor any new developments in the areas of production and application for isotopically enriched materials.
We expect to take delivery of sample quantities of silicon-28 in the form of trichlorosilane from a Russian supplier in the next few weeks. We will evaluate this form of isotopically pure silicon for chemical purity and, if acceptable, will place orders for 200 kilograms. This is enough to produce the first bulk silicon-28 wafers and to support our development and pre-commercial needs. When quantities are needed for commercial production, we are confident that a large, affordable supply can be obtained from Russia and will be a satisfactory replacement for Eagle-Picher.
We are continuing our marketing efforts to develop new opportunities for silicon-28 beyond microprocessors. Earlier this year we sold limited quantities of silicon-28 epitaxial wafers to two well-known Japanese semiconductor companies for evaluation.
Opto-electronic devices for optical circuits are now experiencing thermal management problems. We are exploring the use of silcon-28 in this rapidly growing area.
Recent developments in semiconductor materials, such as Si-Ge and 'strained silicon' as announced by IBM (NYSE: IBM - news) are extensions of existing silicon technology and confirm our belief that silicon will be the main semiconductor material for at least the next several decades. Both these technologies are compatible with the use of silicon-28 since they require silicon epitaxial layers and silicon wafers as substrates.
It is interesting to note that the thermal conductivity of Si-Ge, which is used as the substrate for strained silicon, is quite poor. An isotopically pure version of Si-Ge coupled with strained silicon-28 could provide higher thermal conductivity thus speeding the integration of such improvements into the commercial mainstream.
As the industry follows the technology roadmap to 0.10 micron transistors and below, we are confident that silicon-28 will find uses in many diverse applications.
Initial data from a Naval Research Laboratory sponsored program to evaluate isotopically pure silicon carbide (a compound covered by our patent licenses) made from Isonics silicon-28 have shown a positive improvement in thermal conductivity. This finding gives us added confidence that isotopically pure gallium compounds, such as GaAs, GaN, and GaP, will also exhibit improved properties that would be important in devices such as semiconductor lasers, LED's, and high frequency integrated circuits where heat management on the micro scale is a substantial problem.
As many of you are aware, Isonics is the exclusive licensee of two Yale University patents covering isotopically pure silicon-28, gallium arsenide, silicon carbide, and many other compound semiconductor materials. To strengthen and enhance our intellectual property portfolio, we have written a number of new patent applications for isotopically engineered materials. These cover such areas as optical materials, phosphors and luminescent materials, and materials for improved thermal management and packaging.
We believe that isotopically purified forms of naturally occurring materials will continue to lead technology and represent some of the greatest technological and commercial opportunities of the 21st century.
And finally, the Eagle-Picher binding arbitration process is continuing. We expect to have agreed on the board of arbiters by next week. We have increased our demand for damages to $75 million based on Eagle-Picher's breach of the 10-year supply agreement for silicon-28 and other matters. We expect the arbitration to be completed within the next twelve months. Given the clarity of the agreements in place with Eagle-Picher, we anticipate a positive resolution for Isonics.
I hope that this letter has been informative and useful for you. I will endeavor to provide periodic updates such as this, since many of you are interested in the little ``wins'' that we continually make which do not rise to the level for formal disclosure.
Very truly yours,
James E. Alexander
President & CEO
Isonics is a world leader in isotopically engineered materials and produces isotopically pure silicon-28 chemicals and wafers for the semiconductor industry. Isonics also markets and sells stable isotopes for the health care industry such as carbon-13 for diagnostic breath tests and drug design, and oxygen-18 for positron emission tomography (PET) imaging. Stable isotopes can be thought of as ultra pure materials. For additional information visit isonics.com.
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 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, 2000, and its quarterly report on Form 10-QSB for the nine months ended January 31, 2001, both as filed with the Securities and Exchange Commission, which include the Company's 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 the Company's filings with the Securities and Exchange Commission.
--------------------------------------------------------------------------------
Contact:
Cameron Associates
Michael Brod, 212/245-8800
michael@cameronassoc.com
or
Isonics Corporation
James E. Alexander, 303/279-7900 |
