TSO3 gets promising preliminary results on the capacity of its Ozone Sterilizer to deactivate prions

January 3, 2008

Québec City, Qc, Canada, January 3rd, 2008 – TSO3 Inc. (“TSO3”) (TSX: TOS) has obtained promising preliminary results on the capacity of the 125L Ozone Sterilizer to deactivate prions. Prions are infectious proteins which are responsible for transmissible spongiform encephalopathy (TSE) agents such as Bovine Spongiform Encephalopathy (BSE) (also called “Mad Cow Disease”) or Creutzfeldt-Jakob Disease (CJD) in humans.

These results come from the research currently in progress at the Health Protection Agency’s Centre for Emergency Preparedness & Response (HPA-CEPR) in England, which consists of comparing the capacities of the ozone sterilization process with those of a vapour sterilization process at high temperature and elevated pressure (“autoclaving”). “The performance of ozone compares favourably to those of vapour sterilization at this preliminary stage. This is quite something if you consider that the vapour sterilization to which we are being compared is a part of one of the decontamination protocols suggested by the World Health Organization (WHO) and that this method can only be used on instruments that can withstand such high temperatures, contrary to our ozone method which operates at low temperature”, indicated Simon Robitaille, COO and Research Director for TSO3 Inc.

In 2005, TSO3 announced that a funded programme of work had been approved by the Department of Health of England for a series of tests intended to ascertain the potential capacity of ozone to deactivate prions. This testing started in 2006 in England and is being performed at the HPA’s CEPR where there are special microbiological containment facilities that enable scientists to safely work with TSE agents. “The potential transmission of CJD from patient to patient via contaminated surgical instruments has been a concern worldwide for a number of years”, said Dr. Neil Raven, Research Project Manager of the HPA, when the announcement was made. "Effective deactivation of infectious prions is a key part of the Department of Health (DH) of the United Kingdom’s strategy to minimise secondary transmission of CJD and this research will provide valuable information on the ability of ozone to deactivate prions that may cause human disease", added Dr. John Stephenson, who was Chief Research Officer in the Research & Development Directorate at the DH, at the time of the announcement.

At the present time, according to the World Health Organization, the only safe method for ensuring that there is no risk of residual infectivity on contaminated instruments is to destroy them by incineration. For instrumentation that has to be reused, the WHO suggests alternative methods that contribute to reducing the infectivity risk, without ensuring complete decontamination. These alternative methods include combining a one hour immersion period in sodium hydroxide (caustic soda) or in bleach, with a vapour sterilization period of 1 hour at 121°C (250°F). For the many instruments which cannot withstand the harsh process imposed by immersion, the suggested procedure is vapour sterilization at temperatures reaching 134°C (273°F) for 18 minutes, for instruments which can withstand such temperatures. This method is the one to which the ozone sterilization method is currently being compared by the HPA.

“Even if these intermediate results are very promising, they do not guarantee, in any way, the outcome of the tests currently in progress”, added Simon Robitaille from TSO3. The work underway in England is therefore being pursued as planned at the HPA. According to the current schedule, the final results are expected by TSO3 in 2009.

TSO3 reiterates that the Company is currently developing an ozone sterilizer for the European market. “These results confirm the pertinence of our work” concluded Jocelyn Vézina, CEO for TSO3 Inc.


About the Health Protection Agency (HPA)

The Health Protection Agency is an independent body that protects the health and well-being of everyone in England and Wales. The Agency plays a critical role in protecting people from infectious diseases and in preventing harm when hazards involving chemicals, poisons or radiation occur. HPA also prepares for new and emerging threats, such as a bio-terrorist attack or virulent new strains of disease.

The Agency’s Centre for Emergency Preparedness and Response at Porton Down in Wiltshire is internationally recognised as a centre of excellence for work with infectious disease and the manufacture of licensed pharmaceuticals.

Information about the HPA can be found at www.hpa.org.uk/business


About TSO3

TSO3, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology whit high commercial potential. The Company’s first product, the 125L Ozone Sterilizer, is designed for sterile processing centers in the hospital environment.

In contrast to other methods used, the ozone sterilization process developed and patented by TSO3 meets all standards required by the evolution in sterilization needs, which are: significant costs savings, increased safety for patients and hospital staff, and a “green” environmentally safe process. The Company believes that its technology represents an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

The 125L Ozone Sterilizer is cleared for commercialization by the US Food and Drug Administration and by Health Canada. TSO3 is in commercialization phase for this first product since 2006.

TSO3 currently has more than 72 employees, about half of whom work in the sales and marketing team.

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.


- 30 -

Source: TSO3 Inc.

Information:
Caroline Côté, Director, Corporate Communications & IR
(418) 651-0003, Ext. 237
Email: ccote@tso3.com
© 2005-2008 TSO3. All Rights Reserved.