CW laser action has been demonstrated on the electronic I*(P-2(1/2)) --> I(P-2(3/2)) transition of atomic iodine at 1.315 mu m from the NCl (a(1)Delta) + I(P-2(3/2)) energy transfer reaction. The stimulated emission was generated in a transverse subsonic flow device when hydrogen azide, HN3, was injected into a flow of iodine and chlorine atoms. The measured laser output power was 180 mW.