Theragenics Agrees to Acquire NeedleTech
Products for $47.8 Million

MARKS THIRD ACQUISITION SINCE 2005;
CONTINUES COMPANY'S DIVERSIFICATION AND GROWTH STRATEGY

July 16, 2008 -- BUFORD, Ga.-Theragenics Corporation (NYSE: TGX), a medical device company serving the surgical products and prostate cancer treatment markets, announced today that it has signed an agreement to acquire NeedleTech Products, Inc., Attleboro, MA, a privately held manufacturer of specialty needles and related medical devices, for $47.8 million in cash, subject to adjustment. The acquisition is expected to close in the third quarter of 2008.

With revenue of $16.9 million in 2007, NeedleTech’s current products include coaxial needles, biopsy needles, access trocars, brachytherapy needles, guidewire introducer needles, spinal needles, disposable veress needles, and other needle-based products. End markets served include the cardiology, orthopedic, pain management, endoscopy, spine, urology, and veterinary markets.

“We are delighted to welcome NeedleTech to the Theragenics family. This acquisition will forward our stated strategy of becoming a diversified medical device manufacturer, will increase our breadth of offerings to our existing customers and will expand our customer base of large leading-edge OEMs,” stated M. Christine Jacobs, Chairman and CEO of Theragenics. “NeedleTech is a good fit, offering products that complement our existing product lines in both our surgical products and brachytherapy businesses. This acquisition will also advance our strategy to provide an ever growing array of high quality, ‘Made in the USA’ products and systems to large players in the medical device field.”

Under the terms of the agreement, Theragenics will pay $47.8 million in cash, plus transaction costs, for NeedleTech, subject to the terms and conditions of the agreement. Theragenics will retain the cash and investments held by NeedleTech, which totaled approximately $5.0 million as of June 30, 2008. The purchase price is also subject to a working capital adjustment at closing. Theragenics expects to finance $24.5 million of the purchase price with borrowings on its existing $40.0 million credit facility and pay the remainder from current cash and investment balances. Theragenics expects the acquisition to be dilutive to earnings per share in 2008 and accretive in 2009.

NeedleTech’s President, Ron Routhier commented, “We are excited about becoming part of the Theragenics team. We are impressed with how they have integrated their previous acquisitions, and we are looking forward to the benefit of the resources and expertise they bring to the table. Theragenics’ assets and resources should help us better serve our customers and accelerate our growth. NeedleTech’s capabilities should also greatly enhance Theragenics’ overall strategy of providing an array of high quality products to the large medical devices manufacturers. ”

Ms. Jacobs said, “We have always managed our balance sheet in a fiscally sound way. This discipline has provided us an opportunity to close on the NeedleTech transaction in a very difficult credit and economic environment. In fact, with this transaction we will have invested over $100 million for three acquisitions since May 2005. This bucks the current trend, especially for smaller companies like ours.”

Concluded Ms. Jacobs, “These investments have transformed our company. We remain focused on maintaining our leadership in the brachytherapy business and continued growth and diversification in our surgical products business. With the addition of NeedleTech, we expect to accelerate this growth by leveraging our assets and capabilities and accelerating product development across our surgical products segment.”

Genesis Capital, LLC was the Company’s financial advisor, and Powell Goldstein LLP was the Company’s legal advisor on this transaction.

About Theragenics Corporation
Theragenics Corporation (NYSE: TGX) operates two business segments: its surgical products business and its brachytherapy seed business. Its surgical products business (www.cpmedical.com and www.galtmedical.com) manufactures and distributes wound closure and vascular access products. Wound closure products include sutures, needles and other surgical products with applications in, among other areas, urology, veterinary, cardiology, orthopedics, plastic surgery and dental. Vascular access includes introducers and guidewires used in the interventional radiology, interventional cardiology and vascular surgery markets. The brachytherapy business manufactures and markets its premier product, the palladium-103 TheraSeed® device (www.theraseed.com) and I-Seed, an iodine-125 based device, which are used primarily in the minimally invasive treatment of localized prostate cancer. For additional information, call Theragenics’ Investor Relations Department at (800) 998-8479 or visit www.theragenics.com.