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International Isotopes Inc. Announces 2012 Year End Financial Results
Date:3/28/2013

tract approach by the DOE resulted in a significant increase in costs to the Company and caused delays in production that adversely impacted sales.  Furthermore, in June 2012, a leak of a cobalt target belonging to another commercial business resulted in the curtailment of all further cobalt handling and production activities at the DOE reactor pending completion of corrective actions.  The Company is currently completing corrective actions and anticipates at least partial resumption of cobalt target transfers before the third quarter of 2013 and development of a new cobalt target design by the end of 2013.  However, it is not certain at this time whether the reactor contractor will permit continued irradiation of the "in process" cobalt targets currently stored at the reactor site.  The Company is still discussing that issue with the reactor contractor and expects to make an announcement on the outcome of those discussions later this year.  In addition, to mitigate the impact of these delays and interruptions to cobalt production activities caused by the NIDC and the cobalt target failure, the Company is investigating alternative sources of cobalt supply and identifying additional reactors for cobalt irradiation.

Sales of nuclear medicine standards accounted for approximately 55% and 51%, of the Company's total sales revenue in 2012 and 2011, respectively.  Sales in this segment decreased by $625,659, or approximately 13%, to $4,169,710 in 2012, as compared to $4,795,369 in 2011.  This year-to-year comparison includes sales from TI Services, LLC, a 50/50 joint venture the Company formed with RadQual, LLC in December 2010, to distribute products and services for nuclear medicine, nuclear cardiology, and Positron Emission Tomography (PET) imaging.  TI Services, LLC sales for 2012 were $2,390,514 as compared to $2,801,109, for 2011, a decrease of $410,595, or approximately 15%.  This decrease in TI Services, LLC sale
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