Theragenics® Obtains New Credit Agreement

Theragenics Corporation (NYSE: TGX), a medical device company serving the surgical products and prostate cancer treatment markets, today announced that it has entered into a new unsecured credit agreement with Wachovia Bank, National Association. Wachovia is a Wells Fargo company. The new credit agreement consists of a $30 million revolving credit facility and a $10 million term loan. Maximum borrowings under the revolving credit facility can be increased to $40 million under an accordion feature. This new credit agreement replaces and refinances the $40 million revolving credit facility with Wachovia that was set to expire in October 2009. Borrowings of $32 million were outstanding under the old credit facility. The financial covenants in the new credit agreement are substantially similar to the previous credit agreement, except that the requirement to maintain at least $20 million in liquid assets has been reduced to $10 million.

"Obtaining our new credit agreement is a significant accomplishment,” stated M. Christine Jacobs, Chairman and Chief Executive Officer of Theragenics. "The credit markets continue to be difficult to navigate for all companies. We believe that our ability to obtain this new credit agreement is a testament to our strategy, our focus on quality cash flows and the strength of our balance sheet. With our new credit agreement in place, we can continue to focus on organic growth and building momentum towards 2010 in the short term, and continue our long-term strategy of diversification.”

Under the new credit agreement, the $30 million revolving line of credit matures on October 31, 2012, with interest payable at LIBOR plus 2.25%. Subject to the approval of the bank, the maximum available borrowings under the revolving line of credit can be increased to $40 million under an accordion feature. $22 million is currently outstanding under this revolving line of credit. The $10 million term loan requires equal monthly principal payments plus interest at LIBOR plus 1.75% over three years, beginning July 1, 2009. The Company also entered into interest rate swaps to hedge the interest rate on the entire amount of the term loan and a portion of the revolving credit facility. The credit agreement is unsecured, but provides for a lien to be established on substantially all assets of the Company if certain events of default occur. Provisions of the new credit facility require the Company to maintain a minimum cash and investment balance, as defined in the agreement, of $10 million. The terms also require the maintenance of certain minimum financial covenants, including a minimum fixed charge coverage ratio and a maximum debt to tangible net worth.

Theragenics Corporation (NYSE: TGX) operates two business segments: its surgical products business and its brachytherapy seed business. Its surgical products business (www.cpmedical.com, www.galtmedical.com, www.needletech.com) manufactures and distributes wound closure, vascular access, and specialty needle products. Wound closure products include sutures, needles and other surgical products. Vascular access includes introducers, guidewires and related products. Specialty needles include coaxial, biopsy, spinal and disposable veress needles, access trocars, and other needle-based products. The Company’s surgical products segment serves a number of markets and applications, including, among other areas, interventional cardiology, interventional radiology, vascular surgery, orthopedics, plastic surgery, dental surgery, urology, veterinary medicine, pain management, endoscopy, and spinal surgery. The Company’s 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.

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks and uncertainties, including, without limitation, statements regarding future growth and building momentum towards 2010. Actual results may differ materially due to a variety of factors, including, among other things, uncertainties related to the integration of acquired companies into the Theragenics organization, the timing and the ability to capitalize on opportunities for investment and growth within the surgical products business, ability to recognize value from areas of shared expertise, risks and uncertainties related to competition within the medical device industry, development and growth of new applications within the markets for wound closure, vascular access, specialty needle, brachytherapy and, more broadly, medical devices, competition from other companies within the wound closure, vascular access, specialty needle, brachytherapy and medical device markets, competition from other methods of treatments, new product development cycles, effectiveness and execution of marketing and sales programs, changes in product pricing, changes in costs of materials used in production processes, changes in the ordering patterns of our customers, continued acceptance and demand for the Company’s products by the markets in which it operates, introduction and/or availability of competitive products by others, potential changes in third-party reimbursement, including Medicare reimbursement as administered by the Centers for Medicare and Medicaid Services (CMS), implementation of new legislation by CMS, physician training, third-party distribution agreements, ability to execute on acquisition opportunities on favorable terms and successfully integrate any acquisitions, potential changes in applicable tax rates, uncertainties related to the credit and investment markets and other factors set forth from time to time in the Company’s Securities and Exchange Commission filings.

All forward looking statements and cautionary statements included in this document are made as of the date hereof based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward looking statement or cautionary statement.