TSO3 gets positive reports from referral sites

December 15, 2005

Québec City, December 15, 2005 – TSO3 Inc. (“TSO3”) (TSX: TOS) shares the written observations of users and managers from two US referral sites. Comments from these users support the TSO3 position that the 125L Ozone Sterilizer is a safe, simple and economical sterilizer in use at a hospital.

“We are delighted to see written confirmation of what our customers have been saying to us over the past few months,” said Ann Hewitt, Vice President of Sales and Marketing of TSO3. “Our customers have showed us that the advantages we expected to see are real and that these benefits do make a difference in the hospital. The Operating Rooms that are using instruments sterilized in the 125L are satisfied with the instrument performance, while the Central Sterilization departments are pleased with the cost savings, ease of use, and safety that compelled them to evaluate the 125L in the first place.”

At the time of the writing of the satisfaction reports, more than 300 sterilization cycles have been run in each 125L Ozone Sterilizer at these hospitals; the number of patients whose instruments have been sterilized in ozone has exceeded 2,000 to date. Biological indicators have been run with every cycle, and all have been negative, confirming that all microorganisms have been killed. “We feel very comfortable with the level of efficacy provided by ozone sterilization,” states the Manager of Central Services at one of these accounts.

Another sterilization manager at this same account summarized their experience with ozone sterilization by saying: “The 125L is certainly simple to operate, with only one choice of cycle, and no need to purchase or handle chemical sterilants. For us, though, the simplicity is not as important as the issue of safety for staff and patients, and the advantages of saving so much money as compared with our old EtO sterilizer.” He added: “The 125L has been very reliable. It has been a strong complementary addition to our options for sterilization of heat sensitive devices.”

An O.R. Materials Coordinator from the second hospital noted that the large chamber capacity of the 125L allowed them to maximize throughput while minimizing costs; they had previously needed to run six cycles in a hydrogen peroxide sterilizer to get the same throughput they now achieve with just one ozone sterilization cycle. Since each cycle of hydrogen peroxide costs them US $11.00, the savings quickly added up.

With a cost of well under US $1.00 per cycle for the water, oxygen and electricity used to make the sterilant, the cost of operation for a 125L will be less than $1,000 annually. Savings from reduced sterilant purchases each year are forecasted to be significant.

Additionally, this hospital stated that their conversion to ozone sterilization has been a quality improvement opportunity for them. They have seen faster set up in the O.R. at the same time they have seen a decrease in their instrument repair costs; they attribute this to the packaging they use with their ozone sterilizer.

“The impact for us [of switching to ozone] was significant,” says a Urology Nurse Manager. “Because of the faster instrument turnaround time, we noticed that our instruments are more readily available in the OR storage area when we need them. From a standpoint of the devices themselves, we noticed they looked shinier and more like new than they did when they were sterilized in Ethylene Oxide.”

A Nurse Manager for General Surgery and MIS (Minimally Invasive Surgery) says, “We have been satisfied with what could be called a transparent transition of our instruments from EtO to ozone. Our physicians haven’t noticed any changes whatsoever in the performance of their instrumentation.”

In addition to the urology, cardiology, MIS and other miscellaneous devices currently being processed in ozone, one of the two hospitals plans to transition a number of ophthalmic devices and batteries used specifically to power orthopedic surgical devices to the 125L for sterilization in ozone. “We are interested in reducing the number of flash sterilization cycles (a fast method at very high temperature) that we use to sterilize batteries,” says the manager who oversees sterilization of surgical instruments. “We are getting indications that the use of the low-temperature sterilization provided by ozone will both increase the number of charges possible over the life of the battery and provide a longer use from each charge. This could show substantial savings to the hospital by reducing the number of batteries we need to purchase annually.”

More Information on the Referral Sites Program

The TSO3 marketing strategy has been to build market acceptance by entering into agreements with North American hospitals, called “referral sites,” to showcase its new ozone-based process for sterilizing medical instruments. With this trial program, TSO3 is demonstrating the significant savings and numerous benefits of the ozone sterilization technological platform through referrals from satisfied customer.
TSO3 believes that those satisfactory referrals will contribute to the company’s success with current and future clients for the 125L Ozone Sterilizer.

About TSO3

TSO3 Inc. is located in Québec City, Québec, Canada, and was founded in 1998. The Company’s mission is to develop and market innovative and comprehensive sterilization solutions.

TSO3 has perfected an innovative sterilization process using ozone as the 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 heat and moisture-sensitive surgical and diagnostic devices which are expensive and in high demand from the surgical suite. The ozone sterilization process is a safe, efficacious, fast and cost-effective response to evolving sterilization needs.

The 125L Ozone Sterilizer by TSO3 was cleared for commercialization by Health Canada and more recently by the U.S. Food and Drug Administration (FDA). TSO3 has started the sale of this product in Q4 2005.

TSO3 currently has 54 employees, 16 of whom work in the sales and marketing team to support SKYTRON, the company’s exclusive distributor for North America.

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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Source: TSO3 Inc.

Information: Caroline Côté
Director, Corporate Communications
and Investor Relations
Phone: (418) 651-0003, ext. 237
Email ccote@tso3.com
© 2005-2008 TSO3. All Rights Reserved.