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International Isotopes Inc. Announces Third Quarter and Nine Months 2008 Financial Results
Date:11/11/2008

ne-month period ending September 30, 2008, was $527,532 compared to $503,877 for the same period in 2007. This represents an increase in revenue of $23,655 or approximately a 5% increase. The fluctuations in revenue from this segment were attributable to typical variations in the volume of gemstone processing.

Gross profit for the three and nine-month periods ended September 30, 2008, was $597,282 and $2,246,355 compared to $689,849 and $1,618,879 for the same periods in 2007. This represents a decrease of $92,567 or 13% and an increase of $627,476 or 39%, for the three and nine month periods respectively. However, gross profit as a percentage of revenue grew from 46% to 48% for the three-month period and from 45% to 50% for the nine-month period comparisons. The Company reported the improvement in gross profit percentage was the result of improvements in production costs and production efficiencies.

Operating expenses increased to $1,324,266 and $3,647,443 for the three and nine-month period ended September 30, 2008, compared to $970,115 and $2,756,052 for the same periods of 2007. This represents an increase of $354,151 or 36%, and $891,391 or 32%, for the three and nine-month periods respectively. The Company reports operating costs have increased in the period comparisons due to increased salaries, contract labor, and legal expense related to engineering design, licensing, addition of full time staff, subcontractors, and legal counsel necessary to support continued growth of the fluorine products division. This includes pilot plant demonstrations and efforts related to equipment acquisition, raising capital, and protecting newly developed intellectual property.

The Company's net loss for the three and nine-month periods ended September 30, 2008 was $739,161 and $1,451,815 compared to a loss of $276,287 and $1,146,281 for the same periods in 2007. This increase in loss was attributable to increases in operating costs related to the support an
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SOURCE International Isotopes Inc.
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