In this type of transformer, primary and secondary windings are wounded separately with electrostatic shield in between. This shield is connected to earth. The isolation transformer helps in rerouting unwanted voltages to sink in earth, it protects sophisticated electronic & electrical equipments such as CNC Machines, Computers, Communication equipments etc. against any transients & harmful electrical noise, spikes, surges etc.
The isolation transformer is available in different levels of noise attenuation capabilities. The most commonly used are 100 & 120db.