TSO₃ cashes almost $10M following the exercise of its warrants

January 6, 2004

Québec, January 6, 2004 - TSO3 inc. («TSO3») announces that 3,194,147 of its 3,335,247 warrants have been exercised, allowing the company to cash in an additional $9,582,441.

« This additional money allows us to start the year 2004 with a strong financial position with approximately $17M. This sum will be used for the commercialisation of our first product, the 125L Ozone Sterilizer, as well as for the development of new products derived from our unique technological platform", indicated Jocelyn Vézina, CEO at TSO3 Inc.

In December 2002, TSO3 completed a public offering for more than $13,340,988 pursuant to a final prospectus dated December 3, 2002. Pursuant to this offering, TSO3 issued 6,760,494 common shares at a price of $2.00 per share and 3,335,247 warrants. Each warrant allowed its holder to subscribe for one common share of TSO3 at a price of $3.00, at any time up until December 31, 2003.

About TSO3

TSO3 Inc. is located in Québec City (Québec, Canada) and was founded in 1998. TSO3 currently has 43 employees, 16 of whom work exclusively in the Research and Development Department. The company’s mission is to develop and market innovative and comprehensive sterilization solutions.

TSO3 has perfected a novel sterilization process using ozone as a sterilizing agent. The first product based on this technological platform is the 125L Ozone Sterilizer, which is intended for hospital sterilization units. The 125L - named after its 125-litre/4.3-cubic-foot capacity - was designed to sterilize the new generation of surgical and diagnostic instruments made of non-heat-resistant materials such as polymers and plastics. The ozone sterilization process is a safe, efficient, fast and cost-effective response to evolving sterilization needs.

The 125L Ozone Sterilizer was licensed by Health Canada in May 2002 and TSO3 was granted U.S. Food and Drug Administration (FDA) approval September 3, 2003.

The Company’s R&D team has also undertaken the development of a smaller, point-of-use ozone sterilization device for operating rooms and private clinics, and is planning the development of an industrial-sized device for manufacturers of medical instruments, among others.

To learn more about TSO3, visit the company’s Web site at http://www.tso3.com

The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO3) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other risks and uncertainties.

The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.

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