TSO₃ Update on Commercial Launch Underway

January 11, 2005

Québec City, January 11, 2005 – Given the excellent results of recent steps in its compatibility program, TSO3 Inc. ("TSO3") is currently rolling out the team for the commercial launch of the 125L Ozone Sterilizer, in accordance with the Company’s strategy, as summarized below.

Internal strength

In addition to Ann Hewitt, Vice President of Sales and Marketing, and Michael Ward, recently appointed Director of Sales, U.S. Market, TSO3 has put together a Customer Support team that includes a Marketing Director, a Network Distribution Manager, three Clinical Specialists and one Sales Representative. Plans are in place to hire two additional Clinical Specialists in 2005.

Distribution network

The Company has entered into an exclusive co-marketing agreement with SKYTRON Inc. for the distribution of TSO3 products in North America. SKYTRON provides 120 sales representatives, as well as 100 service representatives and sales support staff.

"We are delighted to finally be able to roll-out the 125L Ozone Sterilizers in the American referral sites," said Dave Mehney, President of SKYTRON Inc. "The enthusiasm we were anticipating for the product has been confirmed over and over throughout 2004 as we did the groundwork to prepare for the market launch of the 125L. This is the year our team has been waiting for, and in 2005 we plan to take full advantage of our thorough knowledge of the market for this new product that favourably adds to our product offering for the healthcare sector."

Referral sites

The TSO3 marketing strategy is 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 plans to demonstrate the significant savings and numerous benefits of the ozone sterilization technological platform through referrals from satisfied customer. Six such agreements have been signed in Canada, and an additional seven in the U.S.

Installation underway

Currently, units have been installed and are becoming operational in all the Canadian referral sites and in four U.S. sites. More installations are planned for the next few weeks so that all referral sites will gradually start running the units on a regular basis. The hospitals will conduct in-use evaluations for a period estimated at a minimum of 90 days.

First sales

TSO3 anticipates the first sales of 125L Ozone Sterilizers in the first half of the current year. The results of the tests conducted by the referral sites and a satisfaction report will be published to promote market awareness and acceptance for the technology, while referral sites will continue to showcase the technology for future clients of TSO3.

About SKYTRON

SKYTRON, a division of the KMW Group Inc., is a leading provider of surgical support systems, products and services and technologies to hospitals, surgical centres, healthcare clinics and group purchasing organizations. The company was established in 1972, quickly becoming the leading supplier of quality focusable lighting systems in the United States. SKYTRON has continued its steady growth and product menu of equipment and services, including operating room, emergency and exam lighting, cameras, tables, ceiling-mounted equipment management systems (skybooms), stainless steel equipment and washer-disinfectors.

Already servicing operating room and decontamination-sterilization departments throughout North America SKYTRON provides 120 sales representatives, 100 service representatives and sales support facilities with manufacturing suppliers in the United States, Canada, Finland, Japan and the Netherlands.

To learn more about SKYTRON, visit the company’s Web site at: www.skytron.us

About TSO3

TSO3 Inc. is located in Québec City, Québec, Canada, and was founded in 1998. TSO3 currently has 48 employees, 17 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 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 the new generation of surgical and diagnostic instruments made of non-heat-resistant materials, mainly polymers. 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 and more recently by the U.S. Food and Drug Administration (FDA). TSO3 expects the first sales in 2005.

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.

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