Exhibit 1

AGREEMENT

THIS IS NOT AN OFFER OR SALE OF SECURITIES OF ISONICS CORPORATION. ANY SUCH OFFER OR SALE MUST BE PRECEDED BY COMPLIANCE WITH THE SECURITIES LAWS OF THE UNITED
STATES AND ALL APPLICABLE STATES.

Institut für Umwelttechnologien GmbH ("IUT")is a company duly organized and existing under the laws of the Federal
Republic of Germany and having its office at Volmerstrasse 9 B, D-12489 Berlin-Adlershof, Federal Republic of Germany. Among other detection technology, IUT has developed explosives
detection technology based on Neutron Detection method, hereinafter "IUT Technology" more specifically described on Schedule A. When used herein, the term "IUT Technology" includes all
know-how, trade secrets, patent rights, copyrights, work papers, enhancements, improvements, modifications, and other documentation and procedures necessary or appropriate to allow a
licensee or assignee to fully practice the IUT Technology and to conduct the Business.

This
writing expresses our agreement whereby IUT grants and Isonics acquires the exclusive world-wide rights to all intellectual property and other valuable assets related to
IUT Technology for the purpose of further development and commercialization of it on a world-wide, exclusive basis.

For
the above, Isonics agrees to pay and IUT agrees to accept 250,000 shares of Isonics common stock.

Isonics
will form "IUT Detection Technology, Inc." as a US based subsidiary of Isonics for the purpose of concentrating on IUT Technology and the Business and, upon such
formation, Isonics will assign all rights to the IUT Technology to the new subsidiary ("IUT-USA").

1Parties

1.1    Isonics
is a California corporation that is publicly-held. It has filed reports with the Securities and Exchange Commission (the "SEC") under the Securities
Exchange Act of 1934, as amended (the "1934 Act"), and these reports are available through the EDGAR document retrieval system maintained by the SEC at http://www.sec.gov. Isonics represents to IUT
that the information set forth in these reports regarding Isonics is accurate and complete in all material respects. Isonics further represents that it has full legal authority to enter into this
Agreement and to take the actions contemplated hereby.

1.2    When
formed, Isonics will initially own 100% of the outstanding equity of IUT-USA. As a portion of the IUT Consideration (as defined in paragraph 2.1,
below), IUT-USA will issue equity to IUT so that, following such issuance, Isonics will own 85% and IUT will own 15% (the "IUT Ownership of IUT-USA"). IUT-USA may
issue additional equity in the future for such consideration as may be acceptable to IUT-USA board of directors.

1.3    IUT
is a company duly organized and existing under the laws of the Federal Republic of Germany. IUT represents to Isonics that the information IUT has provided to
Isonics is accurate and complete in all material respects. IUT further represents that it has full legal authority to enter into this Agreement and to take the actions contemplated hereby.

2The Transaction.In each case, the transactions contemplated in this Paragraph 2 are intended to take
place substantially simultaneously and are deemed to have occurred as of December 4, 2002, the date when the parties reached agreement with respect to the transactions although not documented
in this Agreement until thereafter.



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3Expenses.Each of the parties will bear its own expenses incurred in drafting this Agreement and in pursuing
the transactions contemplated herein, and in connection with any further documentation that either of the parties may require.

4Other Matters

4.2Confidentiality.Each party will maintain the confidentiality of all non-public information
obtained from the other party, and neither party will make any commercial or business use of the non-public
information of the other party, without the prior written consent of the other party. All trade secrets shall be respected and maintained secret.

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4.3Public Announcement.The parties acknowledge that Isonics is a publicly-held company and it has
an obligation to announce material events to the market, and Isonics believes that this Agreement may constitute such a material event.

4.4Counterparts.This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered (whether delivered in person, by facsimile, or other electronic form) shall be deemed an original, and such counterparts together shall constitute only one original.

4.5Notices.All notices, demands, requests, or other communications that may be or are required to be given,
served, or sent by any party to any other party pursuant to this Agreement shall be in writing and shall be sent by facsimile transmission, next-day courier or mailed by first-class,
registered or certified mail, return receipt requested, postage prepaid, or transmitted by hand delivery, addressed as follows:





Each
party may designate by notice in writing a new address to which any notice, demand, request, or communication may thereafter be so given, served, or sent. Each notice, demand,
request, or communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given, served, sent, and received for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt or the affidavit of messenger being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the
addressee upon presentation.

4.6Governing Law.This Agreement shall be construed and enforced in accordance with the laws of the State of
Colorado (except the choice of law rules thereof).

4.7Waiver and Other Action.This Agreement may be amended, modified, or supplemented only by a written
instrument executed by the parties against which enforcement of the amendment, modification or supplement is sought.

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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement this 13th day of December 2002 to reflect an agreement made between the parties on the
4th day of December 2002.

|ISONICS CORPORATION |                                                          | INSTITUT FÜR UMWELTTECHNOLOGIEN GMBH
|------------------- | -------------------------------------------------------- | ------------------------------------
|By:                 | /s/BORIS RUBIZHEVSKYBoris Rubizhevsky,Sr. Vice President |                                     
|                    |                                                          |                                     

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