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TSO3 realizes its highest revenues during the second quarter of 2008August 1, 2008Highlights from the second quarter 2008: The Company recorded its highest revenues for a one-quarter period; Implementation of measures that will significantly reduce the Company's operating costs; Certification by the U.S. General Services Administration, opening up a market of 225 health establishments in the United States; Agreement with a U.S. firm specialized in financing medical equipment purchases; Recruitment of new R&D resources and improved alignment of the technological development program with market needs; U.S. registration of the “SteriZone®” brand name for TSO3’s 125L ozone sterilizer. Quebec, August 1, 2008 – Mr. W. Barry McDonald, Interim President and Chief Executive Officer of TSO3 Inc. (“TSO3”) (TSX: TOS), is pleased to announce that the Company realized its highest revenues over a one-quarter period during the three-month period ended June 30, 2008, with six units (three in Canada and three in the United States). The Company recorded revenues of $1.0 million during the second quarter, compared to revenues of $575,253 for the same period last year. “These results indicate the Company has gained some traction with its revised strategy of re-focussing its marketing and sales resources. We are confident that the sales made during the second quarter represent the beginning of a more consistent sales trend for the Company,” said Mr. McDonald. Commercial development: several major achievements Among the recent highlights on the commercial level, was the accreditation obtained by TSO3 with the U.S. General Services Administration. This enables the Company to sell its sterilizer to some 225 U.S. Government healthcare facilities, in particular, hospitals and medical centres for military personnel, veterans and Native Americans. “This achievement is in line with our refocusing strategy announced June 5, 2008. In priority, this strategy targets select high-potential market segments for TSO3, including North American hospitals and medical centres. We also anticipate that we will enter other potential market segments for TSO3 in the United States, such as the medical equipment manufacturing sector that will offer potential multi-product buyers,” added Mr. McDonald. In other regions of the world, the Company intends to adopt an opportunistic approach and take advantage of eventual business development opportunities, notably for their ability to generate short-term revenues. In addition, with the goal of driving interest in TSO3's offering and easing the acquisition process, the Company has entered into an agreement with a U.S. firm specialized in medical equipment purchase financing. By taking advantage of this offer, the Company's clients will not have to pay out the full purchase price in one lump sum, yet they will be able to immediately begin benefiting from the operational savings generated by TSO3's 125L ozone sterilizer. Furthermore, another important highlight in recent weeks for TSO3 is the U.S. registration of its new brand name “SteriZone®” for its 125L ozone sterilizer. This new, simple and descriptive name should contribute toward increasing product recognition and awareness of this sterilizer in the Company’s target markets. R&D operational efficiency With regard to R&D operations, the Company has recently created a new R&D Director position and hired new personnel in this department. The Company is now equipped with a more complete team that has the expertise required to carry out the objectives of our technological development program and more proactively address market expectations. Furthermore, in recent months TSO3 has been able to increase its operational performance and reduce its operating costs. This is in line with the objectives set early last May. As a result, the burn-rate will be reduced in the coming quarters, without impacting business and technological development effectiveness. In order to ensure more efficient implementation and better resource allocation to manage all operations, TSO3 has also recently appointed an Operations Director. “This new position will allow Simon Robitaille, our Co-Founder, Vice-President Operations / R&D, Chief Scientific Officer who previously had responsibility for operations, to exclusively focus his time and energy on carrying out new technological development programs – one of our main priorities and the cornerstone of our future success,” said Mr. McDonald. Through these initiatives implemented in recent weeks, TSO3’s objectives are to increase short and long-term sales; notably by a reduction in the sales cycle time, better align our technology to market needs; and make optimal use of our financial resources via efficiency gains and operating cost reductions. “Today, we can affirm that TSO3 is a more efficiently structured enterprise and that we will be better positioned to identify and take advantage of potential business opportunities,” concluded Mr. McDonald. Conference call TSO3 will host a telephone conference call this Friday, August 1, at 11:00 a.m. (EST) related to the publication of its second quarter results. Analysts and institutional investors are invited to participate in this call. Please dial (514) 807-8791 (Montreal region), (416) 644-3416 (Toronto region) or the toll-free number 1-800 732-9303. Journalists, or anyone else interested in listening to the conference call in real time, can do so via a webcast accessible through TSO3’s website at: www.tso3.com. The webcast will be archived for 90 days. To view the full announcement, click here. The full financial results will soon be available in the Investor's section of our Website. About TSO3 TSO3, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with 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. For more information about TSO3, visit the Company’s Web site at 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. - 30 - Source: TSO3 Inc. Information: Marc Boisjoli CFO (418) 651-0003, ext. 228 mboisjoli@tso3.com Frédéric Tremblay HKDP Tel.: 514 395-0375, ext. 234 |
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