INT ISOT NPV (INIS)

IDAHO FALLS, Idaho, Oct. 1 /PRNewswire-FirstCall/ -- International
Isotopes Inc. (OTC Bulletin Board: INIS) is providing this announcement to
update its shareholders on the progress the Company has made in advancing its
plans for the construction of a depleted uranium de-conversion and fluorine
extraction facility using its patented Fluorine Extraction Process (FEP).

The feedstock for the planned facility is depleted uranium hexafluoride
(UF6). Depleted UF6 is a by-product of the uranium enrichment process.
Enrichment is required to convert natural uranium to a form that is useable as
reactor fuel. Approximately 90% of the UF6 that goes into the enrichment
process emerges as depleted UF6. There are currently four enrichment
facilities in the U.S. that are being built or are planned for construction.
The initial stated capacity of those facilities will produce in excess of 60
million pounds of depleted UF6 each year. This material must be
"de-converted" to a solid form of uranium for easier handling. There are
currently no operating de-conversion facilities in this hemisphere. The INIS
planned de-conversion facility, coupled with the FEP process, will be able to
address a portion of the U.S. de-conversion requirements and do so in an
environmentally-friendly fashion.

The Company announced on June 4, 2008, it had acquired the assets of a
shut-down, depleted UF6 de-conversion facility and its intent to build a new
U.S.-based de-conversion facility utilizing these assets. Simultaneously, the
Company announced plans to include its patented FEP technology within the
de-conversion facility to produce high-value, specialty fluoride gas products,
which are in commercial demand for use in microelectronics manufacturing and
in other applications. The Company expects to realize revenue by charging a
fee for de-conversion services and from sales of hydrofluoric acid and high
purity silicon tetrafluoride. The Company retained an outside consulting firm
to evaluate the SiF4 market and the study indicates that current retail
pricing for ultra pure SiF4 is between $100 and $325 per pound; however, the
Company cautions these prices are subject to change depending on market
conditions.

The de-conversion facility project consists of two major elements: 1) a
stand-alone FEP, large-scale demonstration plant and 2) the planned depleted
uranium de-conversion plant with FEP. The purpose of constructing the FEP
large-scale demonstration facility is to test the design of the larger scale
FEP equipment planned for the uranium de-conversion facility. The large-scale
design will draw upon the information gained in the operation of the existing
GeF4 FEP facility in Idaho and upon a large scale (100,000 pound SiF4) FEP
operation similar to that constructed and operated by the original developers
of the FEP technology in 2000. The demonstration facility will test design
parameters and hardware components to ensure that the large facility will be
safe, reliable, and commercially viable. The facility will be designed for
production rates of approximately 100,000 pounds per year of high purity
silicon tetrafluoride (SiF4). The Company believes that successful operation
at that capacity will facilitate scale up of the design at the uranium
de-conversion facility for annual production of approximately one million
pounds of SiF4.

The large scale FEP demonstration facility will be constructed at the
existing Idaho FEP plant and will utilize many of the same system components
(such as electrical, ventilation, and uranium handling) that are used in the
present GeF4 plant. The Nuclear Regulatory Commission (NRC) license required
for this operation can be obtained with an amendment to the existing NRC
license for FEP operations. Work on this license amendment is already underway
and is expected to be in place by mid 2009.

The Company also announced it had hired a subcontractor team to work on
design and licensing of the depleted uranium de-conversion and FEP facility.
This subcontractor team is comprised of engineers, project managers, and
licensing consultants who have extensive experience in current and historical
design of uranium conversion, de-conversion, and enrichment technology
facilities and with NRC licensing of these types of facilities as well. The
facility is being designed with a great deal of built in flexibility and with
an expected initial capacity to process on the order of 14 million pounds of
depleted UF6 per year . It is expected to produce over a million pounds of
high purity fluoride gas as well as 3 to 5 million pounds of high purity
anhydrous hydrofluoric acid (HF). Both of those products are in high
commercial demand and the Company anticipates successful delivery of these
products into the marketplace.

Steve T. Laflin the Company President and CEO states that "The Company
believes the overall engineering design and licensing approach to this project
is sound and based, to a great extent, upon previously demonstrated,
successfully designed, licensed, and operated facilities. That past operating
experience, coupled with our existing FEP operations and plans for the larger
scale FEP demonstration facility, gives us a high degree of confidence in the
overall timeliness and success of this project."

The Company also reports that the GeF4 FEP plant in Idaho has successfully
produced its initial target quantities of GeF4 for customer evaluation and is
working with customers to complete acceptance testing. The Company still
anticipates the start of commercial sale in the near future but cannot
forecast at this time when that evaluation process will be completed. In the
mean time, the Company is continuing to invest in additional hardware upgrades
to improve capacity and operating efficiency of the GeF4 facility.

Site location studies for the new UF6 processing facility are underway and
the Company has announced it has narrowed its list of candidate locations to
Andrews County Texas, Lea County New Mexico, and two possible locations in
Idaho. Laflin indicated "all of these locations have many excellent
attributes and each could be a good choice for our new facility. The Company
will be conducting a series of local meetings with individuals and groups and
will also hold open house meetings in each location as part of the site
selection process. Dates for the meetings will be announced in the coming
weeks."

The Company cautions that it will need to raise significant capital to
complete this project. Given current market conditions there can be no
guarantee the capital will be available, or available under acceptable terms.
The Company is currently evaluating several paths to raise the capital that
will be necessary for the project.

About International Isotopes Inc.

International Isotopes Inc. manufactures a full range of nuclear medicine
calibration and reference standards, high purity fluoride gases, and a variety
of cobalt-60 products such as teletherapy sources. The Company also provides
a wide selection of radioisotopes and radiochemicals for medical devices,
calibration, clinical research, life sciences, and industrial applications and
provides a host of analytical, measurement, recycling, and processing services
on a contract basis to clients.

International Isotopes Inc. Safe Harbor Statement

Certain statements in this press release are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including the statements with
respect to the Company's goals with respect to constructing a hybrid depleted
uranium de-conversion processing and fluorine extraction facility, amending
the NRC license, and commercial sales of GeF4. Information contained in such
forward-looking statements is based on current expectations and is subject to
change. These statements involve a number of risks, uncertainties and other
factors that could cause actual results, performance or achievements of
International Isotopes Inc. to be materially different from any future
results, performance or achievements expressed or implied by these
forward-looking statements. Other factors, which could materially affect such
forward-looking statements, can be found in International Isotopes Inc.'s
filings with the Securities and Exchange Commission at www.sec.gov, including
our annual report on Form 10-KSB for the year ending December 31, 2007.
Investors, potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements.
Additional factors that could materially affect the results, performance or
achievements of the Company include the ability to successfully obtain
additional funding necessary to complete its planned de-conversion facility
and complete construction and licensing of such facility, which may not occur.
Achievement by the Company of the project is substantially dependent on
success in securing off-take agreements with commercial enrichment companies
for depleted uranium hexafluoride for de-conversion services and supply of the
raw material for the production of high quality fluoride gasses. The
forward-looking statements made herein are only made as of the date of this
press release and International Isotopes, Inc. undertakes no obligation to
publicly update such forward-looking statements to reflect subsequent events
or circumstances.

SOURCE International Isotopes Inc.