TSO₃ reorganizes sales and marketing department in preparation for U.S. market offensive

September 1, 2004

Québec City, September 1, 2004 – The senior management of TSO3 Inc. (“TSO3”) has announced that Ann Hewitt has been named Vice President, Sales and Marketing. Formerly the Vice President, Marketing – U.S. Market, Ms. Hewitt is now the head of the Company’s sales and marketing team, and is managing the partnership with its distributor, SKYTRON. TSO3 is counting on Ms. Hewitt’s more active involvement in the marketing strategy for TSO3 as the Company wants to focus more on the American market.

“Ann Hewitt naturally took charge of the sales and marketing team thanks to her leadership and undeniable expertise in the American market. With the approach of our market offensive in North America, and in the United States in particular, which alone represents 40% of the world market, this promotion is a key move for our Company,” said Jocelyn Vézina, the Chief Executive Officer of TSO3. “Her nomination coincides with the imminent roll out of our devices in the American referral sites.”

Ann Hewitt has extensive experience in marketing, sales and management in the health field, as well as specific experience in bringing new medical products and innovative technologies to market. At STERIS Corporation, she played a key role in the success and rapid growth of the American company, where sales soared from US$8 million to US$800 million during the eight years she was there. STERIS is currently the major sterilization company in North America. Ms. Hewitt holds an undergraduate degree in nursing from the University of Virginia and an MBA from the Kellogg Graduate School of Management at Northwestern University in Chicago.

“I am thrilled to have the opportunity to direct the introduction of this technology into the health care market. The customer response to the concept of ozone sterilization exceeds anything I have ever experienced – I truly believe we have developed the solution to a myriad of sterilization challenges that our customers currently face,” said Ann Hewitt, the new Vice President, Sales and Marketing at TSO3. “I am looking forward to a successful launch into the North American market in the next few months.”

In her new position, formerly held by Louis Laurin, Ms. Hewitt will be seconded by a team that is already in place. A director of marketing and a product manager recently joined the team.

About TSO3

TSO3 Inc. is located in Québec City, Québec, Canada, and was founded in 1998. TSO3 currently has 47 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 other plastics. The ozone sterilization process is a safe, efficient, fast and cost-effective response to evolving sterilization needs.

The 125L Ozone Sterilizer by TSO3 was cleared for commercialization by Health Canada in May 2002 and the U.S. Food and Drug Administration (FDA) on 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.

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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