UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C. 20549

                             FORM 10-K/A
                           AMENDMENT NO. 1

   [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
       SECURITIES EXCHANGE ACT OF 1934

   [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
       SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended                   Commission File No.
   December 31, 1997                              0-15443

                      THERAGENICS CORPORATION
  (Exact name of registrant as specified in its charter)

        Delaware                          58-1528626
(State of incorporation)     (I.R.S. Employer Identification Number)

      5325 Oakbrook Parkway
       Norcross, Georgia                              30093
(Address of principal executive offices)            (Zip Code)

Registrant's telephone number, including area code:(770) 271-0233

    

    Securities registered pursuant to Section 12(b) of the Act:  None
Title of Class                Name of each exchange on which registered
--------------                -----------------------------------------
Common  Stock, $.01           New York Stock Exchange
par value together with
the associated ommon Stock
Purchase Rights

Securities registered pursuant to Section 12(g) of the Act:  None

   Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  YES    X      NO


<PAGE>

  Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
form 10-K.

  As of March 16, 1998 the  aggregate  market  value of the common  stock of the
registrant held by non-affiliates of the registrant,  as determined by reference
to the closing  price of the Common  Stock as  reported  on the Nasdaq  National
Market system, was $1,003,681,314.

  As of March 16,  1998 the  number of shares of common  stock,  $.01 par value,
outstanding was 14,546,106.

  Documents incorporated by reference: Proxy Statement for the registrant's 1998
Annual  Meeting of  Stockholders,  to be filed with the  Securities and Exchange
Commission not later than 120 days after December 31, 1997, is  incorporated  by
reference in Part III herein.


                                      -2-
<PAGE>


Explanatory Note:

This  Amendment No. 1 on Form 10-K/A is filed solely to correct the  inadvertent
omission of the typed signature of Grant Thornton LLP, the Company's independent
accountants,  from the audit  report  and  Consent  of  Independent  Accountants
included in the electronic version of the Company's Form 10-K for the year ended
December 31, 1997 filed with the  Securities  and Exchange  Commission  ("SEC").
This filing does not reflect any substantive  changes from the previously  filed
Form 10-K,  but  rather  merely  corrects  the Form 10-K on file with the SEC in
electronic format to conform to the original paper copy.

                                      -3-
<PAGE>


PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

     a) The following documents are filed as part of this Report.

          1. Financial Statements
             See index to financial statements on page 10

          2. Financial Schedules
             Not applicable


          3. Exhibits

              3.1  -    Certificate of Incorporation (1)
              3.2  -    Certificate of Amendment to Certificate
                        of Incorporation (1)
              3.3  -    Certificate of Amendment to Certificate
                        of Incorporation (1)
              3.4  -    By-Laws (1)
              4.1       - See Exhibits 3.1 - 3.4 for provisions in the Company's
                        Certificate of  Incorporation  and By-Laws  defining the
                        rights of holders of the Company's Common Stock.
              4.2  -    Form of Warrant issued to the
                        Representatives of the Underwriters of the
                        Company's Public Offering (1)
              4.3  -    Warrant Agreements dated May 1, 1989 between the
                        Company and James Devas (4)
              4.4  -    Warrant Agreement dated May 8, 1993 between
                        the Company and James Devas (9)
             10.1  -    License Agreement with University of
                        Missouri, as amended (1)
             10.2  -    Agreement with Atomic Energy of Canada, Ltd. (1)
             10.3  -    Reassignment and Release Agreement among the Company,
                        John L. Russell, Jr., and Georgia Tech Research
                        Institute (1)
             10.4  -    1986 Incentive and Non-Incentive Stock
                        Option Plan (1)

                                      -4-
<PAGE>
             
             10.5  -    Letter of  Agreement  between the Company and Yale-New
                        Haven Hospital (2)
             10.6  -    Lease between the Company and T. Rowe Price
                        Realty Income Fund II dated July 14, 1988 (2)
             10.7  -    Form of Purchase Agreement between the
                        Company and ten institutional investors (3)
             10.8  -    Form of Custody Agreement between the
                        Company and IBJ Schroder Bank & Trust
                        Company (3)
             10.9  -    1990 Incentive and Non-Incentive Stock
                        Option Plan (5)*
             10.10 -    Employment Agreement of Bruce W. Smith (5)*
             10.11 -    Purchase Agreement between Theragenics
                        Corporation and Production Equipment
                        Manufacturer (6)
             10.12 -    Term Loan and Security Agreement between
                        Theragenics Corporation and Heller
                        Financial, Inc. (7)
             10.13 -    Purchase Agreement between Theragenics
                        Corporation and Production Equipment
                        Manufacturer (8)
             10.14 -    Amendment to Purchase Agreement between
                        Theragenics Corporation and Production
                        Equipment Manufacturer (9)
             10.15 -    Employment Agreement of John V. Herndon
                        dated August 1, 1993 (9)*
             10.16 -    Employment Agreement of M. Christine Jacobs* (14)
             10.17 -    Lease between the Company and T. Rowe Price
                        Realty Income Fund II dated January 1, 1994
                        (9)
             10.18 -    Agreement with Nordion International Inc.
                        (11)
             10.19 -    Purchase Agreements between Theragenics
                        Corporation and Production Equipment
                        Manufacturer (12)
             10.20(a)   Purchase  Agreement  dated  December  27,  1996  between
                        Theragenics Corporation and Ion Beam Applications s.a.
                        (15)
             10.20(b)   Purchase Agreement dated December 27, 1996
                        between Theragenics Corporation and Ion Beam
                        Applications s.a. (15)
             10.20(c)   Purchase  Agreement  dated  December  27,  1996  between
                        Theragenics Corporation and Ion Beam Applications s.a.
                        (15)
             10.20(d)   Purchase  Agreement  dated  December  27,  1996  between
                        Theragenics Corporation and Ion Beam Applications s.a.
                        (15)

                                      -5-
<PAGE>
             

             10.21 -    Second Amended and Restated Loan and Security Agreement
                        by and between Theragenics Corporation and NationsBank,
                        N.A. (South), Dated as of December 9,
                        1996 (15)
             10.22 -    First modification of Second Amended and Restated Loan
                        and Security Agreement between  Theragenics  Corporation
                        and NationsBank, N.A., Dated September 30, 1997.
             10.23 -    Second  Modification  of Second  Amended and  Restated
                        Loan  and   security   Agreement   between   Theragenics
                        Corporation and  NationsBank,  N.A., Dated November 26,
                        1997.
             10.24 -    Rights Agreement dated as of February 17, 1997 between
                        the Company and SunTrust Bank, Atlanta (16)
             10.25 -    Theragenics  Corporation 1995 Stock Option Plan (17)*
             10.26 -    1997 Stock  Incentive  Plan  (18)*
             10.27 -    Marketing  and Sales Agreement by and between the
                        Company and Indigo Medical, Inc. dated May 30, 1997 (19)
             24.1  -    Consent of Independent Public Accountants
                        for Incorporation by Reference of Audit
                        Report into Registration Statements **
             27.1  -    Financial Data Schedule for the years ended December 31,
                        1997 and 1996 (for SEC use only)
             27.2  -    Financial Data Schedule for the interim periods in the
                        year ended December 31, 1997
             27.3  -    Financial Data Schedule for the interim periods in the
                        year ended December 31, 1996

*    Management contract or compensatory plan or arrangement identified
     pursuant to Item 14(a)(3) of Form 10-K

**   Included herein



                                      -6-
<PAGE>

(1)  Incorporated  by  reference  to  the  exhibits  filed  with  the  Company's
     registration  statement on Form S-1, File No. 33-7097,  and  post-effective
     amendments thereto.
(2)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1988.
(3)  Incorporated  by  reference  to the exhibits to the report on Form 10-Q for
     the period ended June 30, 1989.
(4)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1989.
(5)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1990.
(6)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1991.
(7)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1992.
(8)  Incorporated  by  reference  to the exhibits to the report on Form 10-Q for
     the period ended June 30, 1993.
(9)  Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1993.
(10) Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1994.
(11) Incorporated  by  reference to the exhibits to the report on Form 8-K dated
     March 23, 1995.
(12) Incorporated  by  reference to the exhibits to the report on Form 8-K dated
     June 29, 1995.
(13) Incorporated  by  reference  to the exhibits to the report on Form 10-K for
     the period ended December 31, 1995.
(14) Incorporated by reference to the exhibits to the report on Form 10-K for
     the period ended December 31, 1996.
(15) Incorporated  by  reference to the exhibits to the report on Form 8-K dated
     January 13, 1997.
(16) Incorporated  by reference to the  exhibits to the  Company's  registration
     statement on Form 8-1 filed February 27, 1997.
(17) Incorporated by reference to the exhibits to the Common Stock  Registration
     Statement on for S-8, file #333- 15313.
(18) Incorporated  by reference to appendix B to the Company's  proxy  statement
     for its 1997 Annual Meeting of Stockholders filed on schedule 14A.
(19) Incorporated by reference to the exhibits to the report on Form 10Q for the
     period ended September 30, 1997.


                                      -7-
<PAGE>


(b) Reports on Form 8-K

       No reports on Form 8-K were filed by the Company  during the last quarter
       of the most recent fiscal year.


                                      -8-
<PAGE>


                                  SIGNATURE

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
                                  THERAGENICS CORPORATION
                                       (Registrant)

                                  By:/s/ Bruce W. Smith
                                     ------------------
                                     Bruce W. Smith
                                     Secretary, Treasurer and
                                     Chief Financial Officer
Dated: October 15, 1998
       Norcross, Georgia


                                      -9-
<PAGE>


THERAGENICS CORPORATION

TABLE OF CONTENTS


                                                           Page

    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ................11
    (For the periods ended December 31, 1995, 1996 and 1997)

    FINANCIAL STATEMENTS

    Balance Sheets - December 31, 1996 and 1997 .............12

    Statements of Earnings for the Three Years Ended
    December 31, 1997 .......................................13

    Statement of Shareholders' Equity for
    the Three Years Ended December 31, 1997 .................14

    Statements of Cash Flows for the Three Years Ended
    December 31, 1997 .......................................16

    NOTES TO FINANCIAL STATEMENTS ...........................18



                                      -10-
<PAGE>
    


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

Board of Directors
Theragenics Corporation

         We have  audited  the  balance  sheets of  Theragenics  Corporation  (a
Delaware  corporation)  as of  December  31,  1996  and  1997,  and the  related
statements  of earnings,  shareholders'  equity,  and cash flows for each of the
three years in the period ended December 31, 1997.  These  financial  statements
are the  responsibility of the Company's  management.  Our  responsibility is to
express an opinion on these financial statements based on our audits.

         We conducted our audits in accordance with generally  accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe our audits provide a reasonable basis for our opinion.

         In our opinion,  the  financial  statements  referred to above  present
fairly,  in  all  material  respects,  the  financial  position  of  Theragenics
Corporation  as of December 31, 1996 and 1997, and the results of its operations
and its cash flows for each of the three years in the period ended  December 31,
1997, in conformity with generally accepted accounting principles.


/s/ GRANT THORNTON LLP
----------------------

Atlanta, Georgia
January 15, 1998



                                      -11-
<PAGE>
                                   


                                              THERAGENICS CORPORATION
                                                  BALANCE SHEETS


                                                        December 31,
<TABLE>

<CAPTION>

                                                                                        1996                      1997

                                                                                ---------------------     ----------------------
<S>                                                                              <C>                      <C>

 ASSETS
    CURRENT ASSETS
       Cash and short-term investments                                                $  2,986,123                30,161,614
       Marketable securities                                                                    --                 8,391,807
       Trade accounts receivable, less
       allowance of $0 in 1996 and $65,446 in 1997                                       2,258,936                 2,925,390
       Inventories                                                                         229,298                   433,873
       Prepaid expenses and other current assets                                           133,625                   160,620
                                                                                 --------------------       -------------------
          Total current assets                                                           5,607,982                42,073,304
     PROPERTY, PLANT AND EQUIPMENT - AT COST
       Building and improvements                                                         3,333,728                 3,333,728
       Leasehold improvements                                                              138,978                   138,978
       Machinery and equipment                                                          11,522,064                14,698,623
       Office furniture and equipment                                                       65,057                    66,464
                                                                                  --------------------     --------------------
                                                                                        15,059,827                18,237,793
       Less accumulated depreciation                                                    (3,237,684)               (4,695,669)
                                                                                  -------------------      --------------------
                                                                                        11,822,143                13,542,124
       Land                                                                                525,372                   525,754
       Construction in progress                                                          5,238,056                14,917,788
                                                                                  -------------------      --------------------
                                                                                        17,585,571                28,985,666
     OTHER ASSETS
       Deferred income tax asset                                                           360,000                        --
       Patent costs                                                                         80,685                    71,836
       Other                                                                                55,183                     9,503

                                                                                  -------------------      --------------------
                                                                                           495,868                    81,339
                                                                                  -------------------      --------------------

   Total Assets                                                                         23,689,421         $      71,140,309
                                                                                  ===================      ====================
   LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
   Current portion of long-term debt                                                     3,458,436                    --
      Trade accounts payable                                                               330,375                 1,435,154
      Accrued salaries, wages and payroll taxes                                            459,421                   689,610
      Income taxes payable                                                                   --                      845,364
      Other current liabilities                                                             56,677                   137,097
                                                                                  -------------------     ---------------------
         Total current liabilities                                                       4,304,909                 3,107,225
    DEFERRED INCOME TAXES                                                                       --                 1,000,000
    COMMITMENTS AND CONTINGENCIES                                                               --                        --
    SHAREHOLDERS' EQUITY
     Common stock authorized 50,000,000 shares of $.01 par
     value;            issued and outstanding, 11,814,278 in 1996 and
    14,537,841 in 1997                                                                     118,143                   145,378
   Additional paid-in capital                                                           17,616,560                55,740,366
   Retained earnings                                                                     1,649,809                11,147,340
                                                                                  -------------------     ---------------------
                                                                                  -------------------     ---------------------
                                                                                        19,384,512                67,033,084
                                                                                  -------------------     ---------------------
                                                                                  ===================     =====================
    Total Liabilities and Shareholders' Equity                                    $     23,689,421        $       71,140,309

                                                                                  ===================     =====================
</TABLE>

The accompanying notes are an integral part of these statements.

                                      -12-


<PAGE>


                                              THERAGENICS CORPORATION

                                              STATEMENTS OF EARNINGS
                                              Year ended December 31,
<TABLE>
<CAPTION>

                                                               1995                   1996                   1997
                                                      --------------------  ----------------------  ---------------------
<S>                                                   <C>                   <C>                     <C>

REVENUE
  Product sales                                       $         7,781,962   $          12,257,165   $         12,169,724
  Product sales - affiliate                                            --                      --             12,287,650
     Licensing fees                                                85,431                 100,000                100,000
                                                      --------------------  ----------------------  ---------------------
                                                      --------------------  ----------------------  ---------------------
                                                                7,867,393              12,357,165             24,557,374
                                                      --------------------  ----------------------  ---------------------

COSTS AND EXPENSES
  Cost of product sales                                         2,645,730               3,735,669              6,141,330
   Selling, general
        and                                                     2,395,846               3,198,663              4,818,650
        administrative
  Research and development                                         17,954                   6,952                 55,390
                                                      --------------------  ----------------------  ---------------------
                                                      --------------------  ----------------------  ---------------------
                                                                5,059,530               6,941,284             11,015,370
                                                      --------------------  ----------------------  ---------------------
OTHER INCOME (EXPENSE)
  Interest income                                                143,424                  126,953              1,361,890
  Interest expense                                               (51,967)                (84,517)               (21,095)
  Other                                                          (26,995)                 (6,311)               (35,268)
                                                      ---------------------   ---------------------   --------------------
                                                      --------------------  ----------------------  ---------------------
                                                                   64,462                  36,125             1,305,527
                                                      --------------------  ----------------------  ---------------------

Net earnings before income  taxes                               2,872,325               5,452,006             14,847,531

Income tax expense                                              1,100,000               2,067,500              5,350,000
                                                      --------------------  ----------------------  ---------------------

               Net earnings                                   $ 1,772,325             $ 3,384,506            $ 9,497,531
                                                      ====================  ======================  =====================

Net earnings per common share
  Basic                                                        $       .16   $                 .29           $       .69
                                                      ====================  ======================  =====================

  Diluted                                                       $      .15            $       .28            $       .66
                                                      ====================  ======================  =====================


</TABLE>


                                      -13-
<PAGE>






                            Theragenics Corporation

                     STATEMENTS OF SHAREHOLDERS' EQUITY

                    For the three years ended December 31, 1997


<TABLE>
<CAPTION>

                                                                                                 Retained
                                                          Common stock        Additional         earnings
                                                    Number of     Par value       paid-in       (accumulated
                                                     shares         $.01          capital         deficit)           Total
<S>                                             <C>            <C>           <C>              <C>              <C>

Balance, December 31, 1994                         10,961,887  $   109,618   $   15,207,453   $  (3,507,022)    $ 11,810,049

Exercise of stock options, net of 17,102
  common shares redeemed                              432,898        4,330          469,717               -          474,047

Income tax benefit from stock options exercised             -            -          713,000               -          713,000

Net earnings for the year                                   -            -                -       1,772,325        1,772,325
                                                -------------    ----------  --------------  --------------    -------------
Balance, December 31, 1995                         11,394,785       113,948      16,390,170      (1,734,697)      14,769,421

Exercise of stock options, net of 11,723
   common shares redeemed                             379,493         3,795         398,163               -          401,958

Exercise of warrants                                   40,000           400         299,600               -          300,000

Income tax benefit from stock options exercised             -             -         528,627               -          528,627

Net earnings for the year                                   -             -               -       3,384,506        3,384,506
                                                 ------------    ----------  --------------  --------------    -------------
Balance, December 31, 1996                         11,814,278       118,143      17,616,560       1,649,809       19,384,512
</TABLE>



                                      -14-
<PAGE>


                                    Theragenics Corporation

                              STATEMENTS OF SHAREHOLDERS' EQUITY - CONTINUED

                               For the three years ended December 31, 1996


<TABLE>
<CAPTION>
                                                                                                  Retained
                                                          Common stock          Additional        earnings
                                                    Number of      Par value     paid-in        (accumulated
                                                    shares          $.01         capital          deficit)         Total
                                                    ------------------------   -----------    -------------    ------------

<S>                                               <C>            <C>         <C>             <C>               <C>

Issuance of common stock in secondary public
  offering, net of offering costs of $2,482,701    2,300,000        23,000    31,994,299                -       32,017,299

Issuance of common stock to Johnson & Johnson
  Development Corporation                            254,453         2,544     4,997,456                -        5,000,000

Exercise of stock options, net of 1,000 common
  shares redeemed                                    149,110         1,491       492,615                -          494,106

Exercise of warrants                                  20,000           200       149,800                -          150,000

Income tax benefit from stock options exercised            -             -       489,636                -          489,636

Net earnings for the year                                  -             -             -        9,497,531        9,497,531
                                                  ----------     ---------    ----------       ----------       ----------

Balance, December 31, 1997                        14,537,841     $ 145,378   $55,740,366     $ 11,147,340      $67,033,084
                                                  ==========     =========    ==========      ===========       ==========

</TABLE>


The accompanying notes are an integral part of these statements.




                                      -15-
<PAGE>




                             Theragenics Corporation

                           STATEMENTS OF CASH FLOWS

                             Year ended December 31,


<TABLE>
<CAPTION>

                                                                      1995              1996                1997
                                                              --------------      -------------       -------------
<S>                                                              <C>                <C>                 <C>

Cash flows from operating activities:
   Net earnings                                                  $ 1,772,325        $ 3,384,506         $ 9,497,531
   Adjustments to reconcile net earnings to net
     cash provided by operating activities:
       Deferred income taxes                                       1,082,000          1,972,000           1,850,000
       Depreciation and amortization                                 828,072          1,114,919           1,466,834
       Provision for doubtful accounts receivable                          -                  -              65,446
       Loss on disposal of property and equipment                      1,677                  -                   -
       Change in assets and liabilities:
         Accounts receivable                                        (603,221)          (923,291)           (731,900)
         Inventories                                                  25,206            (62,343)           (204,575)
         Prepaid expenses and other current assets                    24,280            (66,104)            (26,995)
         Other assets                                                      -                  -              45,680
         Trade accounts payable                                      121,982            (17,816)          1,104,779
         Accrued salaries, wages and payroll taxes                   115,006            234,283             230,189
         Other current liabilities                                   (17,214)            47,369              80,056
         Income taxes payable                                              -                  -             845,364
                                                                   ---------        -----------         -----------

             Net cash provided by operating activities             3,350,113          5,683,523          14,222,409
                                                                   ---------        -----------         -----------

Cash flows from investing activities:
   Purchase and construction of property and equipment            (2,426,961)        (8,555,876)        (12,858,080)
   Purchase of marketable securities                                       -                  -          (8,391,807)
   Maturities of marketable securities                                50,000                  -                   -
   Patent costs                                                       (3,632)                 -                   -
                                                                   ---------        -----------         -----------

              Net cash used by investing activities               (2,380,593)        (8,555,876)        (21,249,887)
                                                                   ---------        -----------         -----------

</TABLE>



                                      -16-


<PAGE>


                                  Theragenics Corporation

                           STATEMENTS OF CASH FLOWS - CONTINUED

                                 Year ended December 31,

<TABLE>
<CAPTION>


                                                                1995                 1996                 1997
                                                          --------------     ----------------       ---------------
<S>                                                      <C>                 <C>                    <C>

Cash flows from financing activities:
   Proceeds from long-term debt                                       -             2,450,225                   -
   Repayment of long-term debt                                 (469,622)             (511,286)         (3,458,436)
   Proceeds from issuance of common stock, net                        -                     -          37,017,299
   Proceeds from exercise of stock options and
     warrants                                                   474,047               701,958             644,106
   Debt issue costs                                             (25,070)              (48,759)                  -
                                                          --------------     ----------------       ---------------

         Net cash (used) provided by
           financing activities                                 (20,645)            2,592,138          34,202,969
                                                          --------------     ----------------       ---------------

Net increase (decrease) in cash and
   short-term investments                                       948,875              (280,215)         27,175,491

Cash and short-term investments
   at beginning of year                                       2,317,463             3,266,338           2,986,123
                                                          --------------     ----------------       ---------------

Cash and short-term investments
   at end of year                                        $    3,266,338        $    2,986,123       $  30,161,614
                                                          ==============     ================       ===============
</TABLE>

             Supplemental Schedule of Non Cash Financing Activities

   During 1995,  1996 and 1997, the Company  realized an income tax benefit from
   the exercise and early  disposition of certain stock options of approximately
   $713,000, $529,000 and $490,000, respectively.
<TABLE>
<CAPTION>

Supplementary Cash Flow Disclosure
<S>                                                          <C>      <C>        <C>               <C>


   Interest paid, net of amounts capitalized                  $       54,000     $       82,000    $         29,000

   Income taxes paid                                          $       15,000     $       99,000    $      2,655,000


</TABLE>


The accompanying notes are an integral part of these statements.


                                      -17-


<PAGE>



                             Theragenics Corporation

                          NOTES TO FINANCIAL STATEMENTS

                           December 31, 1996 and 1997



NOTE A - ORGANIZATION AND DESCRIPTION OF BUSINESS

   Theragenics  Corporation  (the  "Company")  was organized in November 1981 to
   develop,  manufacture,  and market  radiological  pharmaceuticals and devices
   used in the  treatment  of  cancer.  The  Company  manufactures  and  markets
   primarily one product, TheraSeed(R), which is used primarily in the treatment
   of prostate  cancer.  Use of the  Company's  product is regulated by the U.S.
   Food and Drug  Administration  (FDA).  Under a marketing and sales  agreement
   executed with Indigo  Medical,  Inc.  (Indigo) in May 1997,  (see Note F) all
   TheraSeed(R)  products used in the  treatment of prostate  cancer are sold to
   Indigo.  The  TheraSeed(R)  product is utilized by hospitals,  physicians and
   other health service providers in the United States. The Company therefore is
   directly  affected  by  changes  in  technology,  as it may  apply to  cancer
   treatment,  and by FDA  regulations  and the well  being of the  health  care
   industry.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant  accounting  policies  consistently  applied in the
preparation of the accompanying financial statements follows:

   1.Use of Estimates

   In preparing  financial  statements in  conformity  with  generally  accepted
   accounting  principles  ("GAAP"),  management  is  required  to make  certain
   estimates  and  assumptions  that affect the  reported  amounts of assets and
   liabilities  and the disclosure of contingent  assets and  liabilities at the
   date of the  financial  statements  and  revenues  and  expenses  during  the
   reporting period. Actual results could differ from those estimates.

   2.Cash and Short-Term Investments

   For purposes of reporting cash flows, cash and short-term investments include
   cash on hand,  cash in banks and variable rate demand notes with original
   maturities of less than 90 days.

   3.Marketable Securities

   Marketable  securities  are classified as available for sale and are reported
   at fair value. Fair value is based upon quoted market prices. At December 31,
   1997,  marketable  securities  consisted of municipal and hospital  authority
   obligations.  Marketable  securities of $6,891,807 mature within one year and
   marketable  securities  of  $1,500,000  mature  in  2004  with  a put  option
   exercisable  in 1998.  At December  31,  1997,  the fair value of  marketable
   securities approximated amortized cost. No marketable securities were held at
   December 31, 1996.


                                      -18-
<PAGE>


                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1996 and 1997


NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

   4.Inventories

   Inventories  are  stated at the lower of cost or market.  Cost is  determined
   using the specific  identification  method which  approximates  the first-in,
   first-out (FIFO) method. Inventories consist primarily of work in process.

   5.Property, Equipment, Depreciation and Amortization

   Property and  equipment  are recorded at  historical  cost.  Depreciation  is
   provided for in amounts  sufficient to relate the cost of depreciable  assets
   to operations over their estimated  services lives on a straight-line  basis.
   Depreciation  and  amortization  expense  related to property  and  equipment
   charged to operations was approximately  $810,000,  $1,044,000 and $1,458,000
   for  1995,  1996 and  1997,  respectively.  Estimated  services  lives are as
   follows:

                  Building and improvements               30 years
                  Machinery, leasehold improvements,
                    furniture and equipment             5-10 years

   A significant portion of the Company's depreciable assets are utilized in the
   production   of  its   product.   Management   periodically   evaluates   the
   realizability  of its  depreciable  assets in light of its  current  industry
   environment.  Management  believes that no impairment of  depreciable  assets
   exists at December  31,  1997.  It is possible,  however,  that  management's
   estimates  concerning the realizability of the Company's  depreciable  assets
   could  change  in the  near  term due to  changes  in the  technological  and
   regulatory environment.

   The primary machinery and equipment  utilized in the Company's  manufacturing
   process  has been  acquired  from one  vendor.  Currently,  the  Company  has
   contracts for additional manufacturing equipment with this vendor. Management
   believes that the vendor has the ability to continue to deliver the equipment
   in accordance with the terms of the contracts. Any inability of the vendor to
   meet its  obligations  for  delivery of the  equipment  could have an adverse
   affect on the Company's ability to increase its production capacity.

   6.Patent Costs

   The Company  capitalizes the costs of patent  applications  for its products.
   Amortization is computed on a straight line basis over the estimated economic
   lives of the patents,  commencing at the date of grant of the related patent.
   Patent costs are net of  accumulated  amortization  of $47,295 and $56,144 at
   December  31,  1996 and 1997,  respectively.  Amortization  related to patent
   costs charged to operations was approximately $8,000,  $10,000 and $9,000 for
   1995, 1996 and 1997, respectively.

                                      -19-


<PAGE>


                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                          December 31, 1996 and 1997


NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

   7.Income Taxes

   The Company  accounts for income taxes using the asset and liability  method.
   Under this method, deferred tax assets and liabilities are recognized for the
   future tax  consequences  attributable  to differences  between the financial
   statement  carrying  amounts of  existing  assets and  liabilities  and their
   respective tax bases.  Deferred tax assets and liabilities are measured using
   enacted  tax rates  applied to taxable  income.  The effect on  deferred  tax
   assets and  liabilities  of a change in tax rates is  recognized in income in
   the period  that  includes  the  enactment  date.  A valuation  allowance  is
   provided  for  deferred  tax assets  when it is more likely than not that the
   asset will not be realized.

   8.Research and Development Costs

   The costs of research and development  and consumable  supplies and materials
   to be  used  for the  development  of the  Company's  intended  products  are
   expensed when incurred.

   9.Advertising

   The Company expenses the cost of advertising as incurred. Advertising expense
   for the  years  ended  December  31,  1995,  1996 and 1997 was  approximately
   $139,000, $229,000 and $230,000, respectively.

   10. Earnings Per Share

   The Company adopted Statement of Financial Accounting Standards No. 128 (SFAS
   128),  Earnings Per Share, in the fourth quarter of 1997.  Basic net earnings
   per common share is based upon the weighted  average  number of common shares
   outstanding during the period. Diluted net earnings per common share is based
   upon the weighted  average number of common shares  outstanding plus dilutive
   potential common shares,  including options and warrants  outstanding  during
   the  period.  All  comparative  earnings  per share  data for  prior  periods
   presented has been restated.

   11. Stock Based Compensation

   The Company's  stock option plans are accounted for under the intrinsic value
   method in which  compensation  expense is recognized for the amount,  if any,
   that the fair value of the underlying common stock exceeds the exercise price
   at the date of grant.

                                      -20-

<PAGE>





                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                            December 31, 1996 and 1997




NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

   12. Fair Value of Financial Instruments

   The  Company's   financial   instruments   include  cash,  cash  equivalents,
   marketable securities and long-term debt. The carrying value of cash and cash
   equivalents  approximates  fair value due to the  relatively  short period to
   maturity  of  the  instruments.   Marketable  securities  are  classified  as
   available for sale and are reported at fair value.  The carrying value of the
   Company's long-term obligations  approximates fair value based upon borrowing
   rates  currently  available  to the Company for  borrowings  with  comparable
   maturities.

   13. Hedging Activities

   The Company enters into foreign exchange forward contracts to hedge the price
   risks associated with equipment purchase  commitments  denominated in foreign
   currencies. The forward contracts typically mature concurrently with payments
   required under the equipment  purchase  contracts.  The Company does not hold
   foreign exchange forward contracts for trading or speculative purposes. Gains
   and  losses  are  deferred  and  accounted  for as  part  of  the  underlying
   transactions.  At December 31, 1997,  foreign exchange forward contracts were
   not significant.


NOTE C - CONSTRUCTION IN PROGRESS

Construction in progress consists primarily of payments made for construction of
manufacturing equipment and facilities expansion.  Total cost of this project is
expected to be  approximately  $54,000,000  and is expected to be  completed  in
various stages through 1999.  Total  outstanding  commitments of this project at
December 31, 1997 are approximately  $40,000,000.  Construction of equipment and
facilities totaling  approximately  $4,900,000 and $3,000,000 were completed and
placed in service during 1996 and 1997, respectively.



                                      -21-

<PAGE>



                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                            December 31, 1996 and 1997

<TABLE>
<CAPTION>

NOTE D - INCOME TAXES

   The provision for income taxes is summarized as follows:

                                    1995               1996            1997
                               --------------     -------------    ------------
<S>                            <C>                <C>              <C>

       Current tax expense     $      18,000      $     95,500     $  3,500,000
       Deferred tax expense        1,082,000         1,972,000        1,850,000
                               --------------     -------------    ------------

                               $   1,100,000      $  2,067,500     $  5,350,000
                               ==============     =============    ============
</TABLE>

 The Company's  temporary  differences  result in a deferred income tax asset at
 December  31, 1996 and a deferred  income tax  liability  at December 31, 1997,
 summarized as follows:
<TABLE>
<CAPTION>

                                                            December 31,
                                              ----------------------------------
                                                  1996                 1997
                                              ------------          ------------
<S>                                           <C>                  <C>

      Deferred tax assets:
       Net operating loss carryforwards       $   870,000          $          -
       Tax credit carryforwards                   174,000                     -
       Nondeductible accruals and allowances       50,000                60,000
       Other                                       14,000                     -
                                              ------------          ------------
         Gross deferred tax asset               1,108,000                60,000

       Deferred tax liabilities:
         Depreciation                             748,000            (1,060,000)
                                              -----------           ------------

         Net deferred tax asset (liability)   $   360,000          $ (1,000,000)
                                              ===========           ============
</TABLE>

   The  provision  for  income  taxes  differs  from the  amount of  income  tax
determined by applying the applicable federal rates due to the following:
<TABLE>
<CAPTION>

                                             Year ending December 31,
                                             ------------------------
                                        1995          1996           1997
                                      --------    -----------      ---------
<S>                                <C>            <C>            <C>

Tax at applicable federal rates    $   977,000    $ 1,854,000    $ 5,097,000
State tax, net                         115,000        208,000        254,000
Tax exempt interest                          -            -          (40,000)
         Other                           8,000          5,500         39,000
                                     ---------    -----------      ---------

                                   $ 1,100,000    $ 2,067,500    $ 5,350,000
                                     =========    ===========      =========
</TABLE>


                                      -22-


<PAGE>

                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1996 and 1997




NOTE E - NOTES PAYABLE
   The Company  has  entered  into an amended  and  restated  loan and  security
   agreement ("the loan agreement") with a bank. The loan agreement provides for
   a revolving  credit  facility of up to  $15,000,000.  Interest on outstanding
   borrowings is payable monthly at the prime rate or at a LIBOR based rate.

   The LIBOR  based  rate  ranges  from LIBOR plus 1.5% to LIBOR plus 2%, and is
   determined by the Company's debt service  coverage  ratio,  as defined in the
   loan agreement.  At December 31, 1996,  $3,458,436 was outstanding  under the
   revolving  credit  facility  with an  effective  interest  rate of 8.25%.  No
   amounts were outstanding under the revolving credit agreement at December 31,
   1997.

   Outstanding  borrowings  under  the  loan  agreement  are  collateralized  by
   substantially all of the Company's  assets.  Provisions of the loan agreement
   limit the  incurrence  of  additional  debt and  require the  maintenance  of
   certain  minimum  financial  ratios,  among other things.  As of December 31,
   1997,  the  Company  was in  compliance  with  the  provisions  of  the  loan
   agreement.


NOTE F - COMMITMENTS AND CONTINGENCIES

   Marketing and Sales Agreement

   In May 1997,  the Company  executed an agreement  with Indigo  Medical,  Inc.
   (Indigo), a subsidiary of Johnson & Johnson Development  Corporation (Johnson
   & Johnson),  granting Indigo the exclusive worldwide right to market and sell
   TheraSeed(R) for the treatment of prostate cancer for a period of seven years
   with a provision for successive three year renewals.  In accordance with this
   agreement,  all  TheraSeed(R)  products  used for the  treatment  of prostate
   cancer are sold to Indigo.  Concurrently with the execution of the agreement,
   Johnson & Johnson purchased 254,453 shares of the Company's common stock.

   Licensing Agreement

   The Company  holds a  worldwide  exclusive  license  from the  University  of
   Missouri for the use of technology,  patented by the University,  used in the
   Company's  "Therasphere"  product.  The licensing  agreement provides for the
   payment  of  royalties  based on the level of sales and on lump sum  payments
   received pursuant to a licensing agreement with Nordion International, Inc.
   (see below).



                                      -23-


<PAGE>


                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1996 and 1997


NOTE F - COMMITMENTS AND CONTINGENCIES - Continued

   Licensing Agreement - Continued

   The  Company  has  granted  certain  of its  geographical  rights  under  the
   licensing agreement with the University of Missouri to Nordion International,
   Inc.,  a Canadian  company  which is a  producer,  marketer  and  supplier of
   radioisotope products and related equipment. Under the Nordion agreement, the
   Company  will  receive  a  licensing  fee for each  geographic  area in which
   Nordian  receives new drug  approval.  The Company will also be entitled to a
   percentage  of future  revenues  earned by  Nordion  as  royalties  under the
   agreement.  Royalties  from this agreement for each of the three years in the
   period ended December 31, 1997 were not significant.

   In 1995, 1996 and 1997, the Company received approximately $85,000,  $100,000
   and $100,000, respectively, from Nordion for the right to use certain patents
   and to manufacture,  distribute,  and sell "Therasphere" for all applications
   worldwide.

   Letter of Credit

   The Company has a letter of credit  outstanding  for  approximately  $315,000
relating to regulatory requirements.

   Lease Commitment

   The Company  leases space and office  equipment  under  noncancelable  leases
   which expire at various dates through April 2000.  Approximate  minimum lease
   payments  under the leases are as follows:  1998,  $162,000;  1999,  $25,000;
   2000, $1,200.

   Rent expense was  approximately  $61,500,  $76,000 and $179,000 for the years
ended December 31, 1995, 1996 and 1997, respectively.



                                      -24-


<PAGE>


                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                          December 31, 1996 and 1997


NOTE G - STOCK OPTIONS AND WARRANTS

   Stock Options

   The  Company's  board of directors has approved four stock option plans which
   in aggregate cover up to 2,700,000  shares of common stock. The plans provide
   for the  expiration  of options ten years from the date of grant and requires
   the  exercise  price of the  options  granted to be at least equal to 100% of
   market value on the date granted.  Stock option  transaction  for each of the
   three years in the period ended December 31, 1997 are summarized below:
<TABLE>
<CAPTION>

                                                   1995                     1996                  1997
                                         ---------------------   ---------------------    -------------------
                                                      Weighted               Weighted                Weighted
                                                       Average                Average                 Average
                                                      Exercise               Exercise                Exercise
                                          Shares       Price       Shares      Price        Shares     Price
                                         ---------    ------    --------     -------    ---------     ------
       <S>                               <C>          <C>       <C>          <C>         <C>          <C>

       Outstanding, beginning of year    1,226,716     $2.09     997,716     $  3.11      826,500     $ 7.22
       Granted                             221,000      5.38     220,000       15.92      269,000      35.80
       Exercised                          (450,000)     1.29    (391,216)       2.21     (150,110)      3.59
       Forfeited                                 -         -           -           -      (52,000)      5.38
                                         ---------    ------    --------     -------     ---------     -----

       Outstanding, end of year            997,716     $3.11     826,500     $  7.22      893,390     $16.54
                                         =========    ======    ========     =======     =========     =====
</TABLE>

The following table summarizes information about stock options outstanding at
December 31, 1997:
<TABLE>
<CAPTION>

                                          Options Outstanding                         Options Exercisable
                               --------------------------------------------      ------------------------------
                                                   Weighted
                                                   Average         Weighted                            Weighted
              Range of            Number           Remaining      Average            Number           Average
              Excise           Outstanding at    Contractual      Exercise       Exercisable at        Exercise
             Price            December 31, 1997  Life (Years)      Price         December 31, 1997      Price
              -----------        -----------------  ------------  ------------      -----------------     --------
          <S>                         <C>           <C>             <C>             <C>                  <C>

             $1.00-3.50               138,175         3.0           $ 2.03            138,175            $ 2.03
             $5.38-6.38               278,215         7.6             5.59            113,881              5.78
          $15.25-16.88                208,000         9.0            15.94             64,000             15.86
                $23.50                 24,000         9.5            23.50                  -                 -
                $37.00                245,000        10.0            37.00                  -                 -
                                      -------       -----            -----          -----------          ------

                                      893,390         7.9           $16.54            316,056            $ 6.18
                                      =======       =====            =====          ===========          ======
</TABLE>

                                      -25-


<PAGE>

                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                            December 31, 1996 and 1997


NOTE G - STOCK OPTIONS AND WARRANTS - Continued

   The Company  follows the  practice of  recording  amounts  received  upon the
   exercise of certain options by crediting common stock and additional  paid-in
   capital. No charges are reflected in the statements of operations as a result
   of the grant or  exercise  of  options.  The  Company  realizes an income tax
   benefit from the exercise or early disposition of certain stock options. This
   benefit  results in a reduction  to income  taxes  payable and an increase in
   additional paid-in capital.

   The Company  uses the  intrinsic  value  method in  accounting  for its stock
   option  plans.  In  applying  this  method,  no  compensation  cost  has been
   recognized.  Had compensation  cost for the Company's stock option plans been
   determined  based on the fair value at the grant dates for awards under those
   plans,  the Company's net earnings and earnings per share would have resulted
   in the pro forma amounts indicated below:

<TABLE>

<CAPTION>

                                                           1995                1996               1997
                                                       -----------          -----------       -----------
     <S>                                               <C>                  <C>               <C>
     Net earnings                As reported           $ 1,772,325          $ 3,384,506       $ 9,497,531
                                 Pro forma               1,750,736            3,015,123         8,628,538

     Basic net earnings per
       common share              As reported           $       .16          $       .29       $       .69
                                 Pro forma                     .16                  .26       $       .63

     Diluted net earnings per
       common share              As reported           $       .15          $       .28       $       .66
                                 Pro forma                     .15                  .24       $       .61
</TABLE>

   For purposes of the pro forma  amounts  above,  the fair value of each option
   grant  was   estimated   on  the  date  of  grant  using  the   Black-Scholes
   options-pricing  model with the following  weighted-average  assumptions used
   for grants in 1995, 1996 and 1997, respectively;  expected volatility of 70%,
   70% and 68%, risk-free interest rates of 5.86%, 6.33% and 5.87%; and expected
   lives of 5.5 years, 7 years and 3.7 years.

   Warrants

   40,000 warrants were exercised during 1996 and 20,000 warrants were exercised
   during 1997,  resulting in proceeds to the Company of $300,000 and  $150,000,
   respectively.  At December 31, 1997, there are outstanding  warrants covering
   40,000 shares of common  stock.  The warrants are  exercisable  at a price of
   $7.50 per share and expire in May 1999.


                                      -26-


<PAGE>


                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                          December 31, 1996 and 1997


NOTE H - EARNINGS PER SHARE

   Earnings per common share was computed as follows:


                                                   Year ended December 31, 1997
                                                   ----------------------------
<TABLE>
<CAPTION>

                                                               Earnings           Shares            Per share
                                                              (Numerator)        (Denominator)        Amount
                                                             ------------       --------------       -----------
     <S>                                                    <C>                 <C>                 <C>
     Net earnings                                           $   9,497,531
                                                             ============

       Basic net earnings per common share

       Earnings available to common shareholders            $   9,497,531           13,762,844      $        .69
                                                                                                     ===========

     Effect of dilutive securities

       Options and warrants                                                            545,876

       Diluted net earnings per common share                $   9,497,531           14,308,720      $        .66

                                                             ============       ==============       ===========

</TABLE>

<TABLE>

<CAPTION>


                                                                          Year ended December 31, 1997
                                                                         ------------------------------
                                                               Earnings           Shares            Per share
                                                              (Numerator)        (Denominator)        Amount
                                                            --------------      --------------       -----------
     <S>                                                    <C>                 <C>                <C>
     Net earnings                                           $   3,384,506
                                                             ============

       Basic net earnings per common share

       Earnings available to common shareholders            $   3,384,506       11,624,778         $    .29
                                                                                                      =====

     Effect of dilutive securities
       Options and warrants                                                        666,462

       Diluted net earnings per common share                $   3,384,506       12,291,240         $   .28
                                                             ============       ==========            =====


</TABLE>

                                      -27-

<PAGE>

                             Theragenics Corporation

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                             December 31, 1996 and 1997

<TABLE>
<CAPTION>

NOTE H - EARNINGS PER SHARE - Continued


                                                                          Year ended December 31, 1995
                                                               Earnings           Shares         Per share
                                                              (Numerator)      (Denominator)      Amount
 <S>                                                        <C>                 <C>              <C>

 Net earnings                                               $   1,772,325
                                                             ============

       Basic net earnings per common share

       Earnings available to common shareholders            $   1,772,325        11,102,869      $    .16
                                                                                                  =======

     Effect of dilutive securities

       Options and warrants                                                         745,181

       Diluted net earnings per common share                $   1,772,325        11,848,050      $    .15
                                                             ============       ===========       =======
</TABLE>


NOTE I - MAJOR CUSTOMERS

   In 1997,  sales to Indigo  Medical,  Inc.  (Indigo)  represented 50% of total
   sales.  Additionally,  approximately  86% of  accounts  receivable  were from
   Indigo at December 31, 1997.  Indigo is a subsidiary of a stockholder  of the
   Company.

   During 1995 and 1996,  there were no customers which  individually  comprised
   ten percent or more of sales.


NOTE J - EMPLOYEE BENEFIT PLAN

   The  Company  sponsors  a  defined  contribution  401(k)  Plan  covering  all
   employees  with at least six months of service  and at least 21 years of age.
   The Plan  permits  participants  to  defer a  portion  of their  compensation
   through payroll deductions. The Company may, at its discretion, contribute to
   the  Plan  on  behalf  of  participating  employees.   Company  discretionary
   contributions were approximately $40,000,  $14,000 and $35,000 for 1995, 1996
   and 1997, respectively.



                                      -28-

<PAGE>


                                  Theragenics Corporation

                             NOTES TO FINANCIAL STATEMENTS - CONTINUED

                                  December 31, 1996 and 1997
<TABLE>
<CAPTION>

NOTE K - QUARTERLY FINANCIAL DATA (UNAUDITED)

The following summarizes certain quarterly results of operations (in thousands, except per share amounts):
                                                                      Quarters ended
                                                  March 31       June 30      September 30    December 31
                                                  --------       -------      ------------    -----------
   <S>                                          <C>               <C>          <C>               <C>
   Year ended December 31, 1997:
   Net revenue                                  $    4,107        $6,172       $    7,018        $ 7,260
   Gross profit                                      2,962         4,613            5,437          5,404
   Net earnings                                      1,109         2,182            2,943          3,264
   Basic net earnings per common share          $      .09        $  .15       $      .20        $   .22
   Diluted net earnings per
     common share                               $     .09         $  .15       $      .20        $   .22

   Year ended December 31, 1996:
   Net revenue                                  $    2,798        $2,727       $    3,144        $ 3,688
   Gross profit                                      2,045         1,840            2,186          2,550
   Net earnings                                        854           678              918            935
   Basic net earnings per common share          $     .07         $  .06       $      .08        $   .08
   Diluted net earnings per
     common share                               $     .07         $  .06       $      .08        $   .08

</TABLE>

NOTE L - NEW ACCOUNTING PRONOUNCEMENTS

   The  Financial  Accounting  Standards  Board (FASB) has issued the  following
   Statements of Financial Accounting Standards (SFAS):

   SFAS 130, Reporting Comprehensive Income, which is effective for fiscal years
   beginning  after  December 15, 1997.  SFAS 130 requires  companies to include
   details  about  comprehensive  income that arise  during a reporting  period.
   Comprehensive income includes revenue, expenses, gains and losses that bypass
   the income  statement  and are reported  directly in a separate  component of
   equity.

   SFAS 131, Disclosure about Segments of An Enterprise and Related Information,
   which is effective for fiscal years  beginning  after December 15, 1997. SFAS
   131 requires  companies  to report  information  about an entity's  different
   types of business activities and the different economic environments in which
   it operates, referred to as operating segments.

   Management  does not expect the  adoption  of these new  standards  to have a
   material  impact on the Company's results of operations or financial
   condition.


                                      -29-

<PAGE>

THERAGENICS CORPORATION

INDEX TO EXHIBIT


                                                                 Page No.


24.1     Consent of Independent Public Accountants                 31
         for Incorporation by Reference of Audit
         Report into Registration Statements



                                      -30-


<PAGE>


               CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS



Board of Directors
Theragenics Corporation


We hereby consent to the  incorporation by reference of our report dated January
15,  1998,  appearing  in your  Annual  Report on Form  10-K for the year  ended
December 31, 1997,  in the Company's  Registration  Statements on Form S-8, file
numbers 333-15313, 333-40737, and 333-40653.


/s/ GRANT THORNTON LLP
    ------------------
    

Atlanta, Georgia
March 31, 1998