January 7, 2019 Odette Audet

TSO3 Achieves Commercial Milestone and Provides Operational Update

Myrtle Beach, SC and Quebec City, Canada – January 7, 2019 – TSO3 Inc. (TSX: TOS) (“TSO3” or
the “Company”), an innovator in sterilization technology for medical devices in healthcare settings, today
announced that during its fourth fiscal quarter ending December 31, 2018, the Company received an
order for the 100th unit of its industry-leading STERIZONE® VP4 Sterilizer. In addition to announcing this
milestone, the Company also provided an update on its 2018 operational and commercialization activities.

Commercial Activities

During the fourth quarter of 2018, the Company received purchase orders from US and Canadian
customers for 21 sterilizers, which represents the highest order rate in the Company’s history. When
including orders received during the quarter, over 100 sterilizers have now been sold to end customers.
When adjusted for committed order backlog, the Company’s inventory of sterilizers now stands at 205
units. As of the end of 2018, the Company had 66 sterilizers installed, 24 sterilizers in backlog for future
delivery and 12 units which have been shipped but are not installed at end customer locations.
In the fourth quarter of 2018, the Company filled sales positions for all its planned sales territories. TSO3
now has 11 dedicated sales specialists covering key North American markets offering better oversight and
control over its sales process, increased customer touch points and an improved ability to educate and
support prospective customers.

Regulatory Update

Over the last three years, TSO3 has actively been pursuing the field of gastrointestinal (“GI”) endoscope
reprocessing as a key emerging market for its proprietary technology. Most recently, concerns
associated with current reprocessing methods of endoscopes have been raised by the medical
community and regulators are closely monitoring the data being reported. On December 10, 2018, the
US Food and Drug Administration (“FDA”) issued a Safety Communication alerting that higher than
expected contamination rates in duodenoscopes have been reported. As the first and only low
temperature method cleared and validated to terminally sterilize these instruments, the Company believes
that it is well positioned to address this critical unmet medical need.
Looking ahead, TSO3 will continue to advocate for improved healthcare practices and work closely with
the scientific and medical communities to raise awareness about the benefits of the STERIZONE VP4
Sterilizer. Utilizing its recently hired and trained sales team, the Company is targeting the central
sterilization and GI departments of specific North American medical facilities where TSO3’s industry
leading technology can provide a low cost, low risk and easy to use solution for the concerns facing these
“After a transformational year for TSO3, we are entering 2019 as a stronger organization. Our pipeline of
identified opportunities continues to grow and our sales process, while still young, is beginning to produce
tangible results. Following the successful build-out of our sales and marketing capabilities and increased
regulatory scrutiny of the efficacy of legacy low-temperature reprocessing technologies, we believe we
are in a good position to accelerate market penetration with our disruptive technology,” said R.M. (Ric)
Rumble, President and CEO of TSO3. “With a growing pipeline of promising opportunities, I remain
confident that we will see an acceleration of commitments as the year unfolds.”
TSO3’s innovative sterilization system quickly provides efficiencies in traditional healthcare sterilization
settings immediately reducing the cost per instrument sterilized while in the GI market, TSO3 remains the
only cleared terminal sterilization technology capable of addressing unmet critical needs in this segment.

About the STERIZONE® VP4 Sterilizer

The STERIZONE® VP4 Sterilizer is a low-temperature sterilization system that utilizes the dual sterilants
of vaporized hydrogen peroxide (H2O2) and ozone (O3) to achieve terminal sterilization of heat and
moisture-sensitive medical devices. Its single pre-programmed cycle can sterilize a large number and
wide range of compatible devices, creating a cost-effective sterilization process with error-free cycle
selection. The device’s unique Dynamic Sterilant Delivery System™ automatically adjusts the quantity of
injected sterilant based on the load composition, weight and temperature. This capability removes the
guesswork and potential for human error, as there is no need to sort instruments and choose the
appropriate cycles as with other machines.
The STERIZONE® VP4 Sterilizer is the only terminal sterilization method that is FDA cleared to sterilize
multi-channeled flexible endoscopes (with a maximum of four channels) of up to 3.5 meters in length,
such as video colonoscopes, duodenoscopes and gastroscopes – an industry first for any medical device
sterilization process.
The STERIZONE® VP4 Sterilizer is also the only cleared low temperature sterilizer that can process a
mixed load consisting of general instruments, single channel flexible endoscopes, and single or double
channel rigid endoscopes in the same cycle with load weights of up to 75 lb. The ability to run mixed
loads significantly reduces labor costs by minimizing the amount of instrument sorting required, while
maximizing the device turns (more productivity from increased throughput capacity).
More information about the STERIZONE® VP4 Sterilizer is available through TSO3’s website, under the
Products section.

About TSO3

Founded in 1998, TSO3’s activities encompass the sale, production, maintenance, research, development
and licensing of sterilization processes, related consumable supplies and accessories for heat-sensitive
medical devices. The Company designs products for sterile processing areas in the hospital environment
that offer an advantageous replacement solution to other low temperature sterilization processes currently
used in hospitals. TSO3 also offers services related to the maintenance of sterilization equipment and
compatibility testing of medical devices with such processes.
For more information about TSO3, visit the Company’s website 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 are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not
limited to, the limited history of sales or distribution of the Company, the evolution in customer demand for the Company’s
product and services, the ability of the Company to obtain the required regulatory clearances to market its products, 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. Although TSO3 believes that the expectations reflected in such forwardlooking
statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The
complete versions of the cautionary note regarding forward-looking statements as well as a description of the relevant
assumptions and risk factors likely to affect TSO3’s actual or projected results are included in the Management’s Discussion
and Analysis for the year ended December 31, 2017, which is available on the Company’s website. The forward-looking
statements contained in this press release are made as of the date hereof, and TSO3 does not assume any obligation to
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless
expressly required by applicable securities laws.


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