----

----

|   | x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|------------------------------------------------------------------------------------------|

| Delaware                        |   | 58-1528626             |
|---------------------------------|--------|------------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer       |
| incorporation or organization)  |   | Identification Number) |

| 5203 Bristol Industrial Way              |   |       |
|------------------------------------------|--------|------------|
| Buford, Georgia                          |   | 30518      |
| (Address of principal executive offices) |   | (Zip Code) |

----

|                                                                                                | Page No. |
|-----------------------------------------------------------------------------------------------------|----------|
| PART I. FINANCIAL INFORMATION                                                                       |     |
|                                                                                                |     |
| ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                                     |     |
|                                                                                                |     |
| Condensed Consolidated Statements of Earnings for the quarters ended March 31, 2011 and 2010        | 3        |
|                                                                                                |     |
| Condensed Consolidated Balance Sheets – March 31, 2011 and December 31, 2010                  | 4        |
|                                                                                                |     |
| Condensed Consolidated Statements of Cash Flows for the quarters ended March 31, 2011 and 2010      | 5        |
|                                                                                                |     |
| Condensed Consolidated Statement of Shareholders’ Equity for the quarter ended March 31, 2011 | 6        |
|                                                                                                |     |
| Notes to Condensed Consolidated Financial Statements                                                | 7        |
|                                                                                                |     |
| ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 14       |
|                                                                                                |     |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 21       |
|                                                                                                |     |
| ITEM 4. CONTROLS AND PROCEDURES                                                                     | 21       |
|                                                                                                |     |
| PART II. OTHER INFORMATION                                                                          | 22       |
|                                                                                                |     |
| ITEM 1. LEGAL PROCEEDINGS                                                                           | 22       |
|                                                                                                |     |
| ITEM 1A. RISK FACTORS                                                                               | 22       |
|                                                                                                |     |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 | 22       |
|                                                                                                |     |
| ITEM 6. EXHIBITS                                                                                    | 23       |
|                                                                                                |     |
| SIGNATURES                                                                                          | 24       |
|                                                                                                |     |

----

| PART I. FINANCIAL INFORMATIONItem 1. Financial Statements |   |
|-----------------------------------------------------------|--------|
| THERAGENICS CORPORATION AND SUBSIDIARIES                  |   |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS             |   |
| (UNAUDITED)                                               |   |
| (Amounts in thousands, except per share data)             |   |

|                                  |   | Quarter Ended March 31, |   |
|---------------------------------------|--------|-------------------------|--------|
|                                  |   | 2011                    |   |   | 2010 |   |
| REVENUE                               |   |                    |   |   |   |   |
| Product sales                         |   | $                       | 19,738 |   |   | $ | 19,972 |   |
| License and fee income                |   |                    | 515    |   |   |   | 346 |   |
|                                  |   |                    | 20,253 |   |   |   | 20,318 |   |
|                                  |   |                    |   |   |   |   |   |   |
| COST OF SALES                         |   |                    | 12,286 |   |   |   | 12,471 |   |
|                                  |   |                    |   |   |   |   |   |   |
| GROSS PROFIT                          |   |                    | 7,967  |   |   |   | 7,847 |   |
|                                  |   |                    |   |   |   |   |   |   |
| OPERATING EXPENSES                    |   |                    |   |   |   |   |   |   |
| Selling, general and administrative   |   |                    | 5,847  |   |   |   | 5,904 |   |
| Amortization of purchased intangibles |   |                    | 698    |   |   |   | 846 |   |
| Research and development              |   |                    | 535    |   |   |   | 440 |   |
| Loss on disposal of assets            |   |                    | 1      |   |   |   | -- |   |
|                                  |   |                    | 7,081  |   |   |   | 7,190 |   |
|                                  |   |                    |   |   |   |   |   |   |
| EARNINGS FROM OPERATIONS              |   |                    | 886    |   |   |   | 657 |   |
|                                  |   |                    |   |   |   |   |   |   |
| OTHER INCOME(EXPENSE)                 |   |                    |   |   |   |   |   |   |
| Interest income                       |   |                    | 40     |   |   |   | 30 |   |
| Interest expense                      |   |                    | (177   | ) |   |   | (317 | ) |
| Other                                 |   |                    | 1      |   |   |   | -- |   |
|                                  |   |                    | (136   | ) |   |   | (287 | ) |
|                                  |   |                    |   |   |   |   |   |   |
| EARNINGS BEFORE INCOME TAXES          |   |                    | 750    |   |   |   | 370 |   |
|                                  |   |                    |   |   |   |   |   |   |
| Income tax expense                    |   |                    | 292    |   |   |   | 226 |   |
|                                  |   |                    |   |   |   |   |   |   |
| NET EARNINGS                          |   | $                       | 458    |   |   | $ | 144 |   |
|                                  |   |                    |   |   |   |   |   |   |
| EARNINGS PER SHARE:                   |   |                    |   |   |   |   |   |   |
| Basic                                 |   | $                       | 0.01   |   |   | $ | 0.00 |   |
| Diluted                               |   | $                       | 0.01   |   |   | $ | 0.00 |   |
|                                  |   |                    |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES               |   |                    |   |   |   |   |   |   |
| Basic                                 |   |                    | 33,338 |   |   |   | 33,213 |   |
| Diluted                               |   |                    | 33,645 |   |   |   | 33,362 |   |
|                                  |   |                    |   |   |   |   |   |   |

----

|  THERAGENICS CORPORATION AND SUBSIDIARIES |   |
|------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS          |   |
| (Amounts in thousands, except per share data)  |   |

| ASSETS                                                                         |   |                     |    |   |              |   |
|--------------------------------------------------------------------------------|--------|--------------------------|---------|--------|-------------------|--------|
|                                                                           |   | March 31,2011(Unaudited) |    |   | December 31, 2010 |   |
| CURRENT ASSETS                                                                 |   |                     |    |   |              |   |
| Cash and cash equivalents                                                      |   | $                        | 25,570  |   |              | $      | 29,674 |   |
| Marketable securities                                                          |   |                     | 13,768  |   |              |   | 10,949 |   |
| Trade accounts receivable, less allowance of $2,651 in 2011 and $2,413 in 2010 |   |                     | 10,540  |   |              |   | 9,567 |   |
| Inventories, net                                                               |   |                     | 13,731  |   |              |   | 13,116 |   |
| Deferred income tax asset                                                      |   |                     | 1,868   |   |              |   | 1,843 |   |
| Prepaid expenses and other current assets                                      |   |                     | 902     |   |              |   | 917 |   |
| TOTAL CURRENT ASSETS                                                           |   |                     | 66,379  |   |              |   | 66,066 |   |
|                                                                           |   |                     |    |   |              |   |   |   |
|     Property and equipment, net                            |   |                     | 36,452  |   |              |   | 36,722 |   |
| Intangible assets, net                                                         |   |                     | 11,604  |   |              |   | 12,319 |   |
| Other assets                                                                   |   |                     | 86      |   |              |   | 80 |   |
|                                                                           |   |                     |    |   |              |   |   |   |
|          TOTAL ASSETS             |   | $                        | 114,521 |   |              | $      | 115,187 |   |

| LIABILITIES & SHAREHOLDERS’ EQUITY                                        |   |   |    |   |
|-------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                |   |   |    |   |   |   |
| CURRENT LIABILITIES                                                                 |   |   |    |   |   |   |
| Trade accounts payable                                                              |   | $      | 1,694   |   |   | $ | 1,887 |   |
| Accrued salaries, wages and payroll taxes                                           |   |   | 1,680   |   |   |   | 2,340 |   |
| Short-term borrowings                                                               |   |   | 3,333   |   |   |   | 3,333 |   |
| Income taxes payable                                                                |   |   | 469     |   |   |   | 8 |   |
| Other current liabilities                                                           |   |   | 1,525   |   |   |   | 1,400 |   |
| TOTAL CURRENT LIABILITIES                                                           |   |   | 8,701   |   |   |   | 8,968 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| Long-term borrowings                                                                |   |   | 22,833  |   |   |   | 23,667 |   |
| Deferred income taxes                                                               |   |   | 1,056   |   |   |   | 1,213 |   |
| Decommissioning retirement liability                                                |   |   | 764     |   |   |   | 749 |   |
| Other long-term liabilities                                                         |   |   | 253     |   |   |   | 311 |   |
| TOTAL LIABILITIES                                                                   |   |   | 33,607  |   |   |   | 34,908 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                       |   |   |    |   |   |   |   |   |
|                                                                                |   |   |    |   |   |   |   |   |
| SHAREHOLDERS’ EQUITY                                                          |   |   |    |   |   |   |   |   |
| Common stock, authorized 100,000 shares of $0.01 par value, issued and outstanding, |   |   |    |   |   |   |   |   |
|      33,879 in 2011 and 33,651 in 2010                     |   |   | 338     |   |   |   | 336 |   |
| Additional paid-in capital                                                          |   |   | 74,071  |   |   |   | 73,902 |   |
| Retained earnings                                                                   |   |   | 6,487   |   |   |   | 6,029 |   |
| Accumulated other comprehensive gain                                                |   |   | 18      |   |   |   | 12 |   |
| TOTAL SHAREHOLDERS' EQUITY                                                          |   |   | 80,914  |   |   |   | 80,279 |   |
|                                                                                |   |   |    |   |   |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                          |   | $      | 114,521 |   |   | $ | 115,187 |   |

----

|                                                                                |   | Quarter Ended March 31, |   |
|-------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                |   | 2011                    |   |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                |   |                    |   |   |   |   |
| Net earnings                                                                        |   | $                       | 458    |   |   | $ | 144 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |   |                    |   |   |   |   |   |   |
| Depreciation and amortization                                                       |   |                    | 1,780  |   |   |   | 1,786 |   |
| Deferred income taxes                                                               |   |                    | (182   | ) |   |   | (139 | ) |
| Provision for allowances                                                            |   |                    | 269    |   |   |   | 62 |   |
| Share-based compensation                                                            |   |                    | 171    |   |   |   | 117 |   |
| Change in fair value of interest rate swaps                                         |   |                    | (33    | ) |   |   | 103 |   |
| Decommissioning retirement liability                                                |   |                    | 15     |   |   |   | 13 |   |
| Loss on sale of marketable securities                                               |   |                    | 1      |   |   |   | 1 |   |
| Changes in assets and liabilities:                                                  |   |                    |   |   |   |   |   |   |
| Accounts receivable                                                                 |   |                    | (1,211 | ) |   |   | (1,159 | ) |
| Inventories                                                                         |   |                    | (646   | ) |   |   | (857 | ) |
| Prepaid expenses and other current assets                                           |   |                    | 15     |   |   |   | (30 | ) |
| Trade accounts payable                                                              |   |                    | (175   | ) |   |   | 1,013 |   |
| Accrued salaries, wages and payroll taxes                                           |   |                    | (660   | ) |   |   | (577 | ) |
| Income taxes payable/refundable                                                     |   |                    | 461    |   |   |   | 358 |   |
| Other current liabilities                                                           |   |                    | 55     |   |   |   | 714 |   |
| Other                                                                               |   |                    | (31    | ) |   |   | (203 | ) |
| Net cash provided by operating activities                                           |   |                    | 287    |   |   |   | 1,346 |   |
|                                                                                |   |                    |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                |   |                    |   |   |   |   |   |   |
| Purchases and construction of property and equipment                                |   |                    | (696   | ) |   |   | (2,788 | ) |
| Proceeds from sale of property and equipment                                        |   |                    | 5      |   |   |   | -- |   |
| Purchases of marketable securities                                                  |   |                    | (4,176 | ) |   |   | (10,813 | ) |
| Maturities of marketable securities                                                 |   |                    | 1,310  |   |   |   | -- |   |
| Proceeds from sales of marketable securities                                        |   |                    | --     |   |   |   | 200 |   |
| Net cash used by investing activities                                               |   |                    | (3,557 | ) |   |   | (13,401 | ) |
|                                                                                |   |                    |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                |   |                    |   |   |   |   |   |   |
| Repayment of borrowings                                                             |   |                    | (834   | ) |   |   | (833 | ) |
| Employee stock purchase plan                                                        |   |                    | 14     |   |   |   | -- |   |
|     Retirement of common stock                                  |   |                    | (14    | ) |   |   | -- |   |
| Net cash used by financing activities                                               |   |                    | (834   | ) |   |   | (833 | ) |
|                                                                                |   |                    |   |   |   |   |   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                           |   | $                       | (4,104 | ) |   | $ | (12,888 | ) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                    |   |                    | 29,674 |   |   |   | 45,326 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                          |   | $                       | 25,570 |   |   | $ | 32,438 |   |
|                                                                                |   |                    |   |   |   |   |   |   |
| SUPPLEMENTARY CASH FLOW DISCLOSURE:                                                 |   |                    |   |   |   |   |   |   |
| Interest paid                                                                       |   | $                       | 212    |   |   | $ | 238 |   |
| Income taxes paid                                                                   |   | $                       | 14     |   |   | $ | 7 |   |
|                                                                                |   |                    |   |   |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:                                        |   |                    |   |   |   |   |   |   |
| Liability for property and equipment acquired                                       |   | $                       | 95     |   |   | $ | 1,215 |   |

----

|                                                                   |   |  Common Stock |   |   |           |   |   |                      |   |   |  Accumulated |   |   |                    |   |
|------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------|--------|--------|---------------------------|--------|--------|-------------------|--------|--------|-------------------------|--------|
|                                                                   |   | NumberofShares     |   |   | ParValueAmount |   |   | Additional Paid-inCapital |   |   | RetainedEarnings  |   |   | other comprehensivegain |   |   | Total |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |
| BALANCE, December 31, 2010                                             |   |               | 33,651 |   |           | $      | 336    |                      |   | $      | 73,902            |   |   | $                       | 6,029  |   |   | $ | 12 |   |   | $ | 80,279 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Issuance of restricted shares                                          |   |               | 223    |   |           |   | 2      |                      |   |   | (2                | )      |   |                    | --     |   |   |   | -- |   |   |   | -- |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
|     Employee stock purchase plan                   |   |               | 13     |   |           |   | --     |                      |   |   | 14                |   |   |                    | --     |   |   |   | -- |   |   |   | 14 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation                                               |   |               | --     |   |           |   | --     |                      |   |   | 171               |   |   |                    | --     |   |   |   | -- |   |   |   | 171 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive gain                                               |   |               | --     |   |           |   | --     |                      |   |   | --                |   |   |                    | --     |   |   |   | 6 |   |   |   | 6 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Shares retired                                                         |   |               | (8     | )      |           |   | --     |                      |   |   | (14               | )      |   |                    | --     |   |   |   | -- |   |   |   | (14 | ) |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Net earnings for the period                                            |   |               | --     |   |           |   | --     |                      |   |   | ---               |   |   |                    | 458    |   |   |   | -- |   |   |   | 458 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| BALANCE, March 31, 2011                                                |   |               | 33,879 |   |           | $      | 338    |                      |   | $      | 74,071            |   |   | $                       | 6,487  |   |   | $ | 18 |   |   | $ | 80,914 |   |
|                                                                   |   |               |   |   |           |   |   |                      |   |   |              |   |   |                    |   |   |   |   |   |   |   |   |   |   |
|  The accompanying notes are an integral part of these statements. |   |

----

----

|   | Balance, December 31, 2010 |   | $      | 11,000 |   |
|--------|----------------------------|--------|--------|--------|--------|
|   | New contracts              |   |   | -      |   |
|   | Matured contracts          |   |   | (834   | )      |
|   | Balance, March 31, 2011    |   | $      | 10,166 |   |
|   |                       |   |   |   |   |

|  Type          |   |  Maturity |   |  Balance Sheet Location |   | March 31, 2011 |   |   | December 31,2010 |   |
|---------------------|--------|----------------|--------|------------------------------|--------|----------------|--------|--------|------------------|--------|
| Interest rate swaps |   | June 2012      |   | Other long-term liabilities  |   | $              | 154    |   |             | $      | 187 |   |
|                |   |           |   |                         |   |           |   |   |             |   |   |   |

|                 |   | Quarter Ended March 31, |   |   |
|----------------------|--------|-------------------------|--------|--------|
|                 |   | 2011                    |   |   | 2010 |   | Location of Loss (Gain) Recognized |
| Periodic settlements |   | $                       | 33     |   |   | $ | 53 |   | Interest expense |
| Change in fair value |   | $                       | (33    | )      |   | $ | 103 |   | Interest expense |

|   •   | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
|----------------------------|------------------------------------------------------------------------------------------------|

|   •    | Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   •    | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Quoted Prices in Active Markets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   |  Total |   |
|--------------------------------------------------------------|--------|------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|-------------|--------|
| March 31, 2011                                               |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |
| Money market funds                                           |   | $                                        | 11,344 |   |                                         | $      | --     |                                     |   | $      | --          |   |   | $ | 11,344 |   |
| Marketable securities                                        |   |                                     | 13,768 |   |                                         |   | --     |                                     |   |   | --          |   |   |   | 13,768 |   |
|         Total assets |   | $                                        | 25,112 |   |                                         | $      | --     |                                     |   | $      | --          |   |   | $ | 25,112 |   |
|                                                         |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |   |   |   |   |
|      Interest rate swaps liability  |   | $                                        | --     |   |                                         | $      | (154   | )                                        |   | $      | --          |   |   | $ | (154 | ) |
|                                                         |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |   |   |   |   |
| December 31, 2010                                            |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |   |   |   |   |
| Money market funds                                           |   | $                                        | 8,053  |   |                                         | $      | --     |                                     |   | $      | --          |   |   | $ | 8,053 |   |
| Marketable securities                                        |   |                                     | 10,949 |   |                                         |   | --     |                                     |   |   | --          |   |   |   | 10,949 |   |
|   Total assets                                     |   | $                                        | 19,002 |   |                                         | $      | --     |                                     |   | $      | --          |   |   | $ | 19,002 |   |
|                                                         |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |   |   |   |   |
|      Interest rate swaps liability  |   | $                                        | --     |   |                                         | $      | (187   | )                                        |   | $      | --          |   |   | $ | (187 | ) |
|                                                         |   |                                     |   |   |                                         |   |   |                                     |   |   |        |   |   |   |   |   |

----

|                                     |   | March 31, 2011 |   |   | December 31,2010 |   |
|------------------------------------------|--------|----------------|--------|--------|------------------|--------|
| Raw materials                            |   | $              | 5,739  |   |             | $      | 5,709 |   |
| Work in process                          |   |           | 2,705  |   |             |   | 2,423 |   |
| Finished goods                           |   |           | 4,988  |   |             |   | 4,625 |   |
| Spare parts and supplies                 |   |           | 899    |   |             |   | 928 |   |
|                                     |   |           | 14,331 |   |             |   | 13,685 |   |
| Allowance for obsolete inventory         |   |           | (600   | )      |             |   | (569 | ) |
|     Inventories, net |   | $              | 13,731 |   |             | $      | 13,116 |   |

----

| Expected dividend yield |   | 0.0%    |   |
|-------------------------|--------|---------|--------|
| Expected volatility     |   | 62.8%   |   |
| Risk-free interest rate |   | 3.03%   |   |
| Expected life           |   | 8 years |   |

|   |                                                                            |   | Quarter Ended March 31, |   |
|--------|---------------------------------------------------------------------------------|--------|-------------------------|--------|
|   |                                                                            |   | 2011                    |   |   | 2010 |   |
|   | Comprehensive income:                                                           |   |                    |   |   |   |   |
|   | Net earnings                                                                    |   | $                       | 458    |   |   | $ | 144 |   |
|   | Other comprehensive gain (loss), net of taxes:                                  |   |                    |   |   |   |   |   |   |
|   |     Unrealized gain (loss) on securities available for sale |   |                    | 6      |   |   |   | (35 | ) |
|   | Total comprehensive income                                                      |   | $                       | 464    |   |   | $ | 109 |   |

----

----

|                            | Quarter Ended March 31, |   |
|---------------------------------|-------------------------|--------|
|                            | 2011                    |   | 2010 |   |
|                            |                    |   |   |   |
| Revenues                        |                    |   |   |   |
| Surgical products               |                    | $      | 14,392 |   |   | $ | 14,570 |   |
| Brachytherapy seed              |                    |   | 5,953 |   |   |   | 5,892 |   |
| Intersegment eliminations       |                    |   | (92 | ) |   |   | (144 | ) |
|                            |                    | $      | 20,253 |   |   | $ | 20,318 |   |
|                            |                    |   |   |   |   |   |   |   |
| Earnings (loss) from operations |                    |   |   |   |   |   |   |   |
| Surgical products               |                    | $      | (191 | ) |   | $ | (390 | ) |
| Brachytherapy seed              |                    |   | 1,078 |   |   |   | 1,060 |   |
| Intersegment eliminations       |                    |   | (1 | ) |   |   | (13 | ) |
|                            |                    | $      | 886 |   |   | $ | 657 |   |
|                            |                    |   |   |   |   |   |   |   |
| Capital expenditures            |                    |   |   |   |   |   |   |   |
| Surgical products               |                    | $      | 135 |   |   | $ | 2,102 |   |
| Brachytherapy seed              |                    |   | 561 |   |   |   | 686 |   |
|                            |                    | $      | 696 |   |   | $ | 2,788 |   |
|                            |                    |   |   |   |   |   |   |   |
| Depreciation and amortization   |                    |   |   |   |   |   |   |   |
| Surgical products               |                    | $      | 1,201 |   |   | $ | 1,242 |   |
| Brachytherapy seed              |                    |   | 579 |   |   |   | 544 |   |
|                            |                    | $      | 1,780 |   |   | $ | 1,786 |   |
|                            |                    |   |   |   |   |   |   |   |

|                                 |   | March 31, |     |   | December 31, |   |
|--------------------------------------|--------|-----------|----------|--------|--------------|--------|
|                                 |   | 2011      |     |   | 2010         |   |
|                                 |   |      |     |   |         |   |
| Identifiable assets                  |   |      |     |   |         |   |
| Surgical products                    |   | $         | 70,111   |   |         | $      | 69,994 |   |
| Brachytherapy seed                   |   |      | 63,342   |   |         |   | 65,649 |   |
| Corporate investment in subsidiaries |   |      | 111,439  |   |         |   | 111,439 |   |
| Intersegment eliminations            |   |      | (130,371 | )      |         |   | (131,895 | ) |
|                                 |   | $         | 114,521  |   |         | $      | 115,187 |   |
| Intangible assets                    |   |      |     |   |         |   |   |   |
| Surgical products                    |   | $         | 11,499   |   |         | $      | 12,198 |   |
| Brachytherapy seed                   |   |      | 105      |   |         |   | 121 |   |
|                                 |   | $         | 11,604   |   |         | $      | 12,319 |   |

----

|                                |   | Quarter Ended March 31, |   |
|-------------------------------------|--------|-------------------------|--------|
|                                |   | 2011                    |   |   | 2010 |   |
| Product sales                       |   |                    |   |   |   |   |
|   United States           |   | $                       | 17,206 |   |   | $ | 17,853 |   |
|   Europe                  |   |                    | 2,175  |   |   |   | 1,790 |   |
|   Other foreign countries |   |                    | 357    |   |   |   | 329 |   |
|                                |   |                    | 19,738 |   |   |   | 19,972 |   |
| License and fee income              |   |                    |   |   |   |   |   |   |
|   United States           |   |                    | 197    |   |   |   | 140 |   |
|   Canada                  |   |                    | 318    |   |   |   | 206 |   |
|                                |   |                    | 515    |   |   |   | 346 |   |
|                                |   |                    |   |   |   |   |   |   |
|                                |   | $                       | 20,253 |   |   | $ | 20,318 |   |

|                                                              |   |   |       |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|
|                                                              |   |   | March 31,  |   |
|                                                              |   |   | 2011  |   |   |   | 2010  |   |
|                                                              |   |   |       |   |   |   |   |   |
| Net earnings                                                      |   | $      | 458        |   |   | $ | 144 |   |
|                                                              |   |   |       |   |   |   |   |   |
| Weighted average common shares outstanding                        |   |   | 33,338     |   |   |   | 33,213 |   |
| Incremental common shares issuable under stock options and awards |   |   | 307        |   |   |   | 149 |   |
| Weighted average common shares outstanding assuming dilution      |   |   | 33,645     |   |   |   | 33,362 |   |
|                                                              |   |   |       |   |   |   |   |   |
| Earnings per share                                                |   |   |       |   |   |   |   |   |
|   Basic                                                 |   | $      | 0.01       |   |   | $ | 0.00 |   |
|   Diluted                                               |   | $      | 0.01       |   |   | $ | 0.00 |   |

----

|                                                                           |   |  Quarter Ended March 31, |   |   | Increase (decrease) |   |
|--------------------------------------------------------------------------------|--------|-------------------------------|--------|--------|---------------------|--------|
|                                                                           |   | 2011                          |   |   |  2010          |   |   |  $ |   |   |  % |   |
| Revenues by segment:                                                           |   |                          |   |   |                |   |   |   |   |   |   |   |
|    Surgical products                                            |   |                          |   |   |                |   |   |   |   |   |   |   |
|       Product sales                              |   | $                             | 14,381 |   |                | $      | 14,555 |   |   | $ | (174 | ) |   |   | (1 | %) |
|       License and fee income                     |   |                          | 11     |   |                |   | 15 |   |   |   | (4 | ) |   |   | (27 | %) |
|          Total surgical products  |   |                          | 14,392 |   |                |   | 14,570 |   |   |   | (178 | ) |   |   | (1 | %) |
|                                                                           |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|    Brachytherapy seed                                           |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|       Product sales                              |   |                          | 5,449  |   |                |   | 5,561 |   |   |   | (112 | ) |   |   | (2 | %) |
|       License and fee income                     |   |                          | 504    |   |                |   | 331 |   |   |   | 173 |   |   |   | 52 | % |
|          Total brachytherapy seed |   |                          | 5,953  |   |                |   | 5,892 |   |   |   | 61 |   |   |   | 1 | % |
|                                                                           |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment eliminations                                                      |   |                          | (92    | )      |                |   | (144 | ) |   |   | 52 |   |   |   | 36 | % |
|                                                                           |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|   Consolidated                                                       |   |                          |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
|       Product sales                              |   |                          | 19,738 |   |                |   | 19,972 |   |   |   | (234 | ) |   |   | (1 | %) |
|       License and fee income                     |   |                          | 515    |   |                |   | 346 |   |   |   | 169 |   |   |   | 49 | % |
|          Total consolidated       |   | $                             | 20,253 |   |                | $      | 20,318 |   |   | $ | (65 | ) |   |   | -- |   |

----

----

----

|   |                                 |   |  Quarter Ended March 31, |   |   |  Increase |   |   |    |   |
|--------|--------------------------------------|--------|-------------------------------|--------|--------|----------------|--------|--------|---------|--------|
|   |                                 |   | 2011                |   |   | 2010           |   |   |  $ |   |   |   |   |
|   | Operating income (loss)              |   |                          |   |   |           |   |   |    |   |   |   |   |
|   |   Surgical products        |   | $                             | (191   | )      |           | $      | (390   | )       |   | $ | 199 |   |   |   |   |
|   |    Brachytherapy seed |   |                          | 1,078  |   |           |   | 1,060  |    |   |   | 18 |   |   |   |   |
|   | Intersegment eliminations            |   |                          | (1     | )      |           |   | (13    | )       |   |   | 12 |   |   |   |   |
|   |   Consolidated             |   | $                             | 886    |   |           | $      | 657    |    |   | $ | 229 |   |   |   |   |

| ·   | ordering patterns of our larger OEM and distributor customers, |
|--------------------|----------------------------------------------------------------|

| ·   | costs incurred to address significant changes in demand, |
|--------------------|----------------------------------------------------------|

| ·   | continued investments in infrastructure, R&D, products, and companies as we make investments to support anticipated future growth and to develop products to address growth opportunities, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in product mix and sales channels, with sales through OEM channels generally carrying a relatively lower gross profit margin and sales through distributor channels generally carrying a somewhat higher gross profit margin, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | continued pricing pressure from customers, |
|--------------------|--------------------------------------------|

| ·   | the implementation of our new, corporate-wide ERP systems, and |
|--------------------|----------------------------------------------------------------|

| ·   | the increasing scale of our surgical products business. |
|--------------------|---------------------------------------------------------|

----

|   |                                                      |   | Quarter Ended March 31, |   |
|--------|-----------------------------------------------------------|--------|-------------------------|--------|
|   |                                                      |   | 2011                    |   |   | 2010 |   |
|   |                                                      |   |                    |   |   |   |   |
|   |   Interest paid or accrued, including loan fees |   | $                       | 226    |   |   | $ | 252 |   |
|   |   Fair value adjustment                         |   |                    | (33    | ) |   |   | 103 |   |
|   |   Interest capitalized                          |   |                    | (16    | ) |   |   | (38 | ) |
|   |                                                      |   |                    |   |   |   |   |   |   |
|   | Total interest expense                                    |   | $                       | 177    |   |   | $ | 317 |   |

----

----

----

| ·   | changes in the U.S. healthcare industry and regulatory environment; |
|--------------------|---------------------------------------------------------------------|

| ·   | competition; |
|--------------------|--------------|

| ·   | new product development cycles; |
|--------------------|---------------------------------|

| ·   | development and growth of new applications within our markets; |
|--------------------|----------------------------------------------------------------|

| ·   | changes in FDA regulatory approval processes; |
|--------------------|-----------------------------------------------|

| ·   | effectiveness and execution of marketing and sales programs, including those of our distributors; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | changes in third-party reimbursement, including CMS and private payors; |
|--------------------|-------------------------------------------------------------------------|

| ·   | potential changes in product pricing; |
|--------------------|---------------------------------------|

| ·   | changes in costs and availability of materials and other operating costs; |
|--------------------|---------------------------------------------------------------------------|

| ·   | continued acceptance of our products in the marketplace; |
|--------------------|----------------------------------------------------------|

| ·   | changes in demand for products; |
|--------------------|---------------------------------|

| ·   | our ability to meet customer demands and/or the need to incur additional costs and inefficiencies to meet such demand; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | a reduction in the number of procedures utilizing our devices caused by cost containment pressures, alternative therapies, or  by other reasons; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to successfully identify, consummate and integrate strategic acquisitions; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | our ability to capitalize on opportunities for growth; |
|--------------------|--------------------------------------------------------|

| ·   | increased costs or product delays required to comply with existing and changing regulations applicable to our businesses, operations  and products; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | effectiveness of implementation of our new ERP system; |
|--------------------|--------------------------------------------------------|

| ·   | ability to realize our estimate of fair value upon sale or liquidation of cash, cash equivalents and marketable securities that we may hold; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | retention of key employees; |
|--------------------|-----------------------------|

| ·   | damage to one or more of our facilities; |
|--------------------|------------------------------------------|

| ·   | volatility in U.S. and global financial markets; |
|--------------------|--------------------------------------------------|

| ·   | substantial defaults in payments or a material reduction in purchases by, or loss of, a large customer; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | changes in circumstances that could impair our intangible assets; |
|--------------------|-------------------------------------------------------------------|

| ·   | new or revised tax legislation or challenges to our tax positions; |
|--------------------|--------------------------------------------------------------------|

| ·   | changes in accounting principles generally accepted in the United States of America; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | general economic conditions, including changes in the financial markets that may affect the availability and cost of credit to us, our customers or our suppliers; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the other factors set forth or incorporated by reference under “Risk Factors” in our 2010 Form 10-K. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

----

|                          |   | (a)                                 |   |   | (b)                          |   |                                                                                                                                                                             | (c)                                                                              |   |   | (d)                                                                                                        |   |
|-------------------------------|--------|-------------------------------------|--------|--------|------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------|--------|
| Period                        |   | Total Numberof Shares Purchased (1) |   |   | Average Price Paid Per Share |   |                                                                                                                                                                             | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number (or Approximate Dollar Value) of Shares that May be Purchased Under these Plans or Programs |   |
|   January 1 to 31, 2011  |   |                                | --     |   |                         | $      | --                              |                                                                             |   |   | --                                                                                                         |   |   |   | -- |   |
|   February 1 to 28, 2011 |   |                                | 8,127  |   |                         | $      | 1.71                                      |                                                                             |   |   | --                                                                                                         |   |   |   | -- |   |
|   March 1 to 31, 2011    |   |                                | --     |   |                         | $      | --                                   |                                                                             |   |   | --                                                                                                         |   |   |   | -- |   |
|   Total                  |   |                                | 8,127  |   |                         | $      |  1.71                                |                                                                             |   |   | --                                                                                                         |   |   |   | -- |   |

| (1)   | Represents shares purchased from employees to pay the withholding taxes related to the vesting of restricted stock.  The shares were not part of a publicly announced repurchase plan or program. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |        |   |                                                                                                                                                                        |
|--------|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Exhibit No. |   | Title                                                                                                                                                                       |
|   |        |   |                                                                                                                                                                        |
|   | 31.1        |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|   |        |   |                                                                                                                                                                        |
|   | 31.2        |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|   |        |   |                                                                                                                                                                        |
|   | 32.1        |   | Certification of Chief Executive Officer pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |        |   |                                                                                                                                                                        |
|   | 32.2        |   | Certification of Chief Financial Officer pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|                    | REGISTRANT:             |                         |
|-------------------------|-------------------------|------------------------------|
|                    |                    |                         |   |
|                    | THERAGENICS CORPORATION |                         |
|               |               |                    |   |
| Date: May 12, 2011 | By:           | /s/ M. Christine Jacobs |   |
|                    |                    | M. Christine Jacobs          |   |
|                    |                    | Chief Executive Officer      |   |
|                    |                    |                         |   |
|               |               |                    |   |
| Date: May 12, 2011 | By:           | /s/ Francis J. Tarallo  |   |
|                    |                    | Francis J. Tarallo           |   |
|                    |                    | Chief Financial Officer      |   |