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    <title>TSO3</title>
    <link>http://www.tso3.com/en/</link>
    <description />
    <dc:language>en-ca</dc:language>
    <dc:rights>Copyright 2008</dc:rights>
    <sy:updatePeriod>daily</sy:updatePeriod>
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      <title>TSO3 CEO to Present at the Canaccord Genuity Annual Growth Conference in Boston</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-ceo-present-canaccord-297.php</link>
      <description>Quebec City, August 11, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, announced today that Mr. R.M. (Ric) Rumble, CEO of TSO3, will be giving a corporate presentation at 11:00 a.m (ET) today, at the Canaccord Genuity Annual Growth Conference. 

TSO3 will offer a live audio webcast of its presentation, as well as an archived replay, which may be accessed at the following address: http://wsw.com/webcast/canaccord4/tos/
Conference Details:
2011 Canaccord Genuity Growth Conference
August 9-11, 2011
Intercontinental Boston Hotel, Boston, Massachusetts
More information: http://www.canaccordgenuity.com

About TSO3

TSO3, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

TSO3’s new generation sterilizer intended for use in Central Sterilization Departments in hospitals, is under a multi-year global license agreement with 3M™ Infection Prevention Division.

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
418 651-0003, Ext. 237
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Quebec City, August 11, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, announced today that Mr. R.M. (Ric) Rumble, CEO of TSO<sub>3</sub>, will be giving a corporate presentation at 11:00 a.m (ET) today, at the Canaccord Genuity Annual Growth Conference. 
<br />
<br />TSO<sub>3</sub> will offer a live audio webcast of its presentation, as well as an archived replay, which may be accessed at the following address: <a href="http://wsw.com/webcast/canaccord4/tos/">http://wsw.com/webcast/canaccord4/tos/</a>
<br /><strong>Conference Details:</strong>
<br />2011 Canaccord Genuity Growth Conference
<br />August 9-11, 2011
<br />Intercontinental Boston Hotel, Boston, Massachusetts
<br />More information: <a href="http://www.canaccordgenuity.com
<br />">http://www.canaccordgenuity.com</a>
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology. TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
<br />
<br />TSO<sub>3</sub>’s new generation sterilizer intended for use in Central Sterilization Departments in hospitals, is under a multi-year global license agreement with 3M™ Infection Prevention Division.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br />
<br />-30-
<br />
<br /><strong>Source: </strong>	TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information: </strong>	
<br />Caroline Côté
<br />Director, Corporate Communications
<br />418 651-0003, Ext. 237
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 CEO to Present at the Canaccord Genuity Annual Growth Conference in Boston</dc:subject>
      <dc:date>2011-08-11 06:05:00</dc:date>
    </item>
    <item>
      <title>TSO3 ANNOUNCES FINANCIAL RESULTS FOR Q2 2011</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-announces-financial-296.php</link>
      <description>[Highlights of Q2 2011 and activities of recent weeks:

•	Appointed new Vice President Finance and Chief Financial Officer;
•	Initiated shipments and installation of 3M™ Optreoz™ 125-Z Sterilizers to customer locations;
•	Grew backlog in excess of half a million dollars at quarter’s end;
•	Filed new submission for clearance in the United States market;
•	Progressed towards design freeze of new and smaller product intended for the Operating Room Sub-Sterile Area;
•	Amended initial Agreement with 3M™ to include new product.

Quebec City, August 9, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, posted its highest quarterly revenues in its second quarter of 2011. For the period ending June 30, 2011, the Company posted revenues of $703,000 from the sales of 3M™ Optreoz™ 125-Z Sterilizers, accessories, consumables and service contracts, as well as license revenues. This amount also includes sales of supplies and service contracts on first generation sterilizers (125L). These revenues compare to Q2 2010 revenues of $545,604, for the sale of 3M™ Optreoz™ Sterilizers, accessories, supplies and service contracts to 3M™ for training purposes. For the six-month period ended June 30, 2011, revenues amounted to $892,554 compared to $733,878 for the same period in 2010. The difference is explained by higher sales of private labelled 3M™ Optreoz Sterilizers and Accessories as a result of initial 3M™ commercial activity. 

The Company recorded a net loss of $2,115,784 for the second quarter of 2011, or $0.04 per share, compared to a net loss of $1,929,389 or $0.03 for the same period in 2010. Higher research and development expenditures totaling $1,093,637 were largely responsible for this increase in the net loss. For the first six-month period of 2011, the Company recorded a net loss of $3,995,794 or $0.07, compared to $3,985,945 for the same period in 2010, or also $0.07.

“In the second quarter, we initiated shipment of 3M™ Optreoz™ 125-Z Sterilizers to customer locations and as we transitioned into third quarter, our backlog sat at over half a million dollars and growing”, said R.M. (Ric) Rumble President and CEO of TSO3. “Customer satisfaction is being closely monitored by 3M™ in these early accounts. I am pleased to say that end user Customers are reporting excellent results from the use of our low temperature sterilization solution that delivers high and cost-effective throughput of their high demand medical devices.  Customers are also reporting loading configurations that include multiple complex flexible endoscopes – a first in the industry”, added Mr. Rumble. “As planned and announced in previous communications, in second quarter we filed our new submission for United States clearance and we remain confident in our ability to obtain this required clearance to access the US market”.   

Q2 2011 Conference Call 

TSO3 will host a telephone Conference Call today, August 9, 2011 at 9:00 a.m. (ET). Analysts and Institutional Investors are invited to participate to the call. The numbers to dial for access are 514 807 8791 (Montréal area), 416 644-3426 (Toronto area) or the Toll-Free number 1 800 732-1073. Other interested parties may listen to the live Webcast of the Conference Call accessible via CNW’s Website at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980. The Webcast will be archived for 90 days.


RESULTS ANALYSIS

In the following paragraphs, the Company analyzes the variances between periods ended June 30, 2011 and 2010. 

TOTAL REVENUES

Sales

In Q2 2011, sales amounted to $650,788, resulting from the sale of sterilizers, supplies, accessories, service contracts, training and after-sales service, compared to $494,353 in Q2 2010. 

For the six-month period ended June 30, 2011, sales amounted to $787,416 compared to $638,581 for the same period in 2010. Higher sales of accessories, services contracts, training and after-sales service explain this increase. 

License Revenues

For the second quarter of 2011, the Company recorded an amount of $52,569 as license revenues compared to $51,251 in 2010.  These revenues are related to the commercial agreement signed with 3M and are equal to the amortization of the sums received from 3M following the achievement of milestones. They are now presented separately in the statement of loss and comprehensive loss. 

For the six-month period ended June 30, 2011, these revenues amounted to $105,138 as compared with $95,297 for the same period in the previous year.

Operating

In Q2 2011, the operating expenses amounted to $740,757 compared to $587,732 in Q2 2010.  This variance is directly related to higher sales, increase of direct and indirect salaries and increase in after-sales service costs. The manufacturing of new generation units and assistance given to 3M for product launch and installation of sterilizers constituted the majority of activities during the second quarter of 2011. 

For the six-month period ended June 30, 2011, these expenses amounted to $1,065,825 compared to $928,224. The increase between those two periods is also explained by higher sales, direct and indirect salaries and after-sales service costs.

Sales and Marketing

For the second quarter of 2011, the sales and marketing expenses amounted to $133,917 compared to $298,151 in 2010.  This variance is due to a decrease in salaries, fringe benefits and traveling expenses since these activities are now under the responsibility of 3M. Conversely, costs related to website have increased between the two quarters due to the work undertaken earlier this year for the complete redesign of the Company’s website.

For the six-month period ended June 30, 2011, these expenses amounted to $292,656 compared to $611,194. The same reasons described above explain the variance.

Research and Development

For the quarter ended June 2011, the research and development expenses, which included a R&amp;D tax credit of $50,000 ($71,000 in 2010), amounted to $1,093,637 compared to $817,017 in 2010.  This variance is due to an increase in salaries, severance expenses, professional fees, regulatory fees and advisors fees. The work undertaken to develop a new sterilizer designated for the OR Sub-Sterile Area combined with the optimization work on the 3M™ Optreoz™ 125-Z sterilizer required the hiring of new resources and the use of subcontractors.

For the six-month period ended June 30, 2011, these expenses amounted to $1,943,343 compared to $1,522,072. This variance is explained as described above and also by material purchases higher in 2011.
 
Administrative

In Q2 2011, the administrative expenses amounted to $883,479 compared to $730,020 in Q2 2010.  Salaries and fringe benefits were lower than in 2010 due to the vacancy of Vice President Finance and Chief Financial Officer position. Conversely, stock-based compensation, traveling, training, stock exchange fees and computer expenses were higher than 2010.

For the six-month period ended June 30, 2011, these expenses amounted to $1,679,528 as compared with $1,633,932 for the same period in the previous year.

Financial Expenses

For the quarter ended June 2011, the financial expenses, which include primarily bank charges and foreign exchange gain or loss, amounted to $6,671 compared to $71,621. The decrease is explained by a lower loss on foreign exchange in 2011.

For the six-month period ended June 30, 2011, these expenses amounted to $12,202 compared to $39,759 in 2010 and the variance explanation is the same as the one of the second quarter 2011. 

Liquid Assets 

As of June 30, 2011, cash, cash equivalents and temporary investments amounted to $14,506,386 as compared to $19,120,007 as of December 31, 2010. This decrease reflects the absorption of cash by the operations and the increase in working capital resulting from increased sales.

Second Quarter Disclosure

The Second Quarter Report is available on TSO3’s website at the following address http://www.tso3.com/en/investors/financial-reports-webcasts.php and full Q2 disclosure will shortly be available on SEDAR (www.sedar.com). 


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.  TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low-temperature sterilization processes currently used in hospitals.

The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, to 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.

For further information:Caroline Côté
Director, Corporate Communications
Cell.: 418 576-2333
ccote@tso3.com




</description>
      <content:encoded><![CDATA[<strong>[Highlights of Q2 2011 and activities of recent weeks:</strong>
<br />
<br />•	Appointed new Vice President Finance and Chief Financial Officer;
<br />•	Initiated shipments and installation of 3M™ Optreoz™ 125-Z Sterilizers to customer locations;
<br />•	Grew backlog in excess of half a million dollars at quarter’s end;
<br />•	Filed new submission for clearance in the United States market;
<br />•	Progressed towards design freeze of new and smaller product intended for the Operating Room Sub-Sterile Area;
<br />•	Amended initial Agreement with 3M™ to include new product.
<br />
<br /><strong>Quebec City, August 9, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, posted its highest quarterly revenues in its second quarter of 2011. For the period ending June 30, 2011, the Company posted revenues of $703,000 from the sales of 3M™ Optreoz™ 125-Z Sterilizers, accessories, consumables and service contracts, as well as license revenues. This amount also includes sales of supplies and service contracts on first generation sterilizers (125L). These revenues compare to Q2 2010 revenues of $545,604, for the sale of 3M™ Optreoz™ Sterilizers, accessories, supplies and service contracts to 3M™ for training purposes. For the six-month period ended June 30, 2011, revenues amounted to $892,554 compared to $733,878 for the same period in 2010. The difference is explained by higher sales of private labelled 3M™ Optreoz Sterilizers and Accessories as a result of initial 3M™ commercial activity. 
<br />
<br />The Company recorded a net loss of $2,115,784 for the second quarter of 2011, or $0.04 per share, compared to a net loss of $1,929,389 or $0.03 for the same period in 2010. Higher research and development expenditures totaling $1,093,637 were largely responsible for this increase in the net loss. For the first six-month period of 2011, the Company recorded a net loss of $3,995,794 or $0.07, compared to $3,985,945 for the same period in 2010, or also $0.07.
<br />
<br />“In the second quarter, we initiated shipment of 3M™ Optreoz™ 125-Z Sterilizers to customer locations and as we transitioned into third quarter, our backlog sat at over half a million dollars and growing”, said R.M. (Ric) Rumble President and CEO of TSO<sub>3</sub>. “Customer satisfaction is being closely monitored by 3M™ in these early accounts. I am pleased to say that end user Customers are reporting excellent results from the use of our low temperature sterilization solution that delivers high and cost-effective throughput of their high demand medical devices.  Customers are also reporting loading configurations that include multiple complex flexible endoscopes – a first in the industry”, added Mr. Rumble. “As planned and announced in previous communications, in second quarter we filed our new submission for United States clearance and we remain confident in our ability to obtain this required clearance to access the US market”.   
<br />
<br />Q2 2011 Conference Call 
<br />
<br />TSO<sub>3</sub> will host a telephone Conference Call today, August 9, 2011 at 9:00 a.m. (ET). Analysts and Institutional Investors are invited to participate to the call. The numbers to dial for access are 514 807 8791 (Montréal area), 416 644-3426 (Toronto area) or the Toll-Free number 1 800 732-1073. Other interested parties may listen to the live Webcast of the Conference Call accessible via CNW’s Website at: <a href="http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980">http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980</a>. The Webcast will be archived for 90 days.
<br />
<br />
<br /><strong>RESULTS ANALYSIS</strong>
<br />
<br />In the following paragraphs, the Company analyzes the variances between periods ended June 30, 2011 and 2010. 
<br />
<br /><strong>TOTAL REVENUES</strong>
<br />
<br />Sales
<br />
<br />In Q2 2011, sales amounted to $650,788, resulting from the sale of sterilizers, supplies, accessories, service contracts, training and after-sales service, compared to $494,353 in Q2 2010. 
<br />
<br />For the six-month period ended June 30, 2011, sales amounted to $787,416 compared to $638,581 for the same period in 2010. Higher sales of accessories, services contracts, training and after-sales service explain this increase. 
<br />
<br />License Revenues
<br />
<br />For the second quarter of 2011, the Company recorded an amount of $52,569 as license revenues compared to $51,251 in 2010.  These revenues are related to the commercial agreement signed with 3M and are equal to the amortization of the sums received from 3M following the achievement of milestones. They are now presented separately in the statement of loss and comprehensive loss. 
<br />
<br />For the six-month period ended June 30, 2011, these revenues amounted to $105,138 as compared with $95,297 for the same period in the previous year.
<br />
<br />Operating
<br />
<br />In Q2 2011, the operating expenses amounted to $740,757 compared to $587,732 in Q2 2010.  This variance is directly related to higher sales, increase of direct and indirect salaries and increase in after-sales service costs. The manufacturing of new generation units and assistance given to 3M for product launch and installation of sterilizers constituted the majority of activities during the second quarter of 2011. 
<br />
<br />For the six-month period ended June 30, 2011, these expenses amounted to $1,065,825 compared to $928,224. The increase between those two periods is also explained by higher sales, direct and indirect salaries and after-sales service costs.
<br />
<br />Sales and Marketing
<br />
<br />For the second quarter of 2011, the sales and marketing expenses amounted to $133,917 compared to $298,151 in 2010.  This variance is due to a decrease in salaries, fringe benefits and traveling expenses since these activities are now under the responsibility of 3M. Conversely, costs related to website have increased between the two quarters due to the work undertaken earlier this year for the complete redesign of the Company’s website.
<br />
<br />For the six-month period ended June 30, 2011, these expenses amounted to $292,656 compared to $611,194. The same reasons described above explain the variance.
<br />
<br />Research and Development
<br />
<br />For the quarter ended June 2011, the research and development expenses, which included a R&D tax credit of $50,000 ($71,000 in 2010), amounted to $1,093,637 compared to $817,017 in 2010.  This variance is due to an increase in salaries, severance expenses, professional fees, regulatory fees and advisors fees. The work undertaken to develop a new sterilizer designated for the OR Sub-Sterile Area combined with the optimization work on the 3M™ Optreoz™ 125-Z sterilizer required the hiring of new resources and the use of subcontractors.
<br />
<br />For the six-month period ended June 30, 2011, these expenses amounted to $1,943,343 compared to $1,522,072. This variance is explained as described above and also by material purchases higher in 2011.
<br /> 
<br />Administrative
<br />
<br />In Q2 2011, the administrative expenses amounted to $883,479 compared to $730,020 in Q2 2010.  Salaries and fringe benefits were lower than in 2010 due to the vacancy of Vice President Finance and Chief Financial Officer position. Conversely, stock-based compensation, traveling, training, stock exchange fees and computer expenses were higher than 2010.
<br />
<br />For the six-month period ended June 30, 2011, these expenses amounted to $1,679,528 as compared with $1,633,932 for the same period in the previous year.
<br />
<br />Financial Expenses
<br />
<br />For the quarter ended June 2011, the financial expenses, which include primarily bank charges and foreign exchange gain or loss, amounted to $6,671 compared to $71,621. The decrease is explained by a lower loss on foreign exchange in 2011.
<br />
<br />For the six-month period ended June 30, 2011, these expenses amounted to $12,202 compared to $39,759 in 2010 and the variance explanation is the same as the one of the second quarter 2011. 
<br />
<br />Liquid Assets 
<br />
<br />As of June 30, 2011, cash, cash equivalents and temporary investments amounted to $14,506,386 as compared to $19,120,007 as of December 31, 2010. This decrease reflects the absorption of cash by the operations and the increase in working capital resulting from increased sales.
<br />
<br /><strong>Second Quarter Disclosure</strong>
<br />
<br />The Second Quarter Report is available on TSO<sub>3</sub>’s website at the following address <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a> and full Q2 disclosure will shortly be available on SEDAR (<a href="www.sedar.com">www.sedar.com</a>). 
<br />
<br />
<br /><strong>About TSO<sub>3</sub> </strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential.  TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low-temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, to those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em> 
<br />
<br />-30-
<br />
<br />
<br /><strong>Source:</strong> TSO<sub>3</sub> Inc.
<br />
<br /><strong>For further information:</strong>Caroline Côté
<br />Director, Corporate Communications
<br />Cell.: 418 576-2333
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>
<br />
<br />
<br />
<br />
<br />]]></content:encoded>
      <dc:subject>TSO3 ANNOUNCES FINANCIAL RESULTS FOR Q2 2011</dc:subject>
      <dc:date>2011-08-09 06:05:00</dc:date>
    </item>
    <item>
      <title>TSO3 to hold Q2 2011 Financial Results Conference Call</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-hold-q2-2011-financial-295.php</link>
      <description>Quebec City, August 2, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) announced today that it will report Financial Results for the second quarter of 2011, for the period ending June 30 2011, on Tuesday, August 9, 2011. TSO3 will host a Conference Call and a Webcast at 9:00 A.M. (EDST) the same day to discuss financial results and to update on recent activities.

Analysts and Institutional Investors are invited to participate to the call. The numbers to dial for access are 514 807-8791 (Montréal area), 416 644-3426 (Toronto area) or the Toll-Free number 1 800 732-1073. Other interested parties may listen to the live Webcast of the Conference Call accessible via CNW’s Website at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980. The Webcast will be archived for 90 days.


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. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

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
418 651-0003, Ext. 237
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Quebec City, August 2, 2011 </strong>– TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) announced today that it will report Financial Results for the second quarter of 2011, for the period ending June 30 2011, on Tuesday, August 9, 2011. TSO<sub>3</sub> will host a Conference Call and a Webcast at 9:00 A.M. (EDST) the same day to discuss financial results and to update on recent activities.
<br />
<br />Analysts and Institutional Investors are invited to participate to the call. The numbers to dial for access are 514 807-8791 (Montréal area), 416 644-3426 (Toronto area) or the Toll-Free number 1 800 732-1073. Other interested parties may listen to the live Webcast of the Conference Call accessible via CNW’s Website at: <a href="http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980">http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3620980</a>. The Webcast will be archived for 90 days.
<br />
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>-30-
<br />
<br /><strong>Source: </strong>	TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information: </strong>	
<br />Caroline Côté
<br />Director, Corporate Communications
<br />418 651-0003, Ext. 237
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 to hold Q2 2011 Financial Results Conference Call</dc:subject>
      <dc:date>2011-08-02 14:44:28</dc:date>
    </item>
    <item>
      <title>TSO3 FILES FOR COMMERCIAL CLEARANCE IN THE UNITED STATES</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-files-commercial-294.php</link>
      <description>Quebec City, June 30, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, announced today that it has  resubmitted documentation to the United States (U.S.) regulatory authorities for the company’s STERIZONE® 125L+ Sterilizer (3M™ Optreoz™ 125-Z). Such a filing is in support of obtaining clearance for the new generation sterilizer to be sold within the United States.

“Filing for clearance through the new regulatory process is a significant step towards the commercialization of our new generation sterilizer in the U.S.”, commented R.M. (Ric) Rumble, CEO of TSO3. “This filing comes after meetings have taken place with the regulators and additional information has been supplied and reviewed in person. These meetings have also allowed us to discuss the contents of the submission and an approach for its filing”, added Mr. Rumble. “We are pleased and confident with the package that has been assembled and we believe in a successful outcome”.

The STERIZONE® 125L+ Sterilizer is covered by a global commercial agreement between TSO3 and 3M™ under the brand name 3M™ Optreoz™ 125Z. 3M™ has initiated a phased introduction targeting 15 countries this year, in markets where regulatory clearances have already been received. Current regulatory clearances cover Canada, the European Union and selected countries of Latin America and Asia Pacific.


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. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

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 and Investor Relations
(418) 651-0003, Ext. 237
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Quebec City, June 30, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, announced today that it has  resubmitted documentation to the United States (U.S.) regulatory authorities for the company’s STERIZONE<sup>®</sup> 125L+ Sterilizer (3M™ Optreoz™ 125-Z). Such a filing is in support of obtaining clearance for the new generation sterilizer to be sold within the United States.
<br />
<br />“Filing for clearance through the new regulatory process is a significant step towards the commercialization of our new generation sterilizer in the U.S.”, commented R.M. (Ric) Rumble, CEO of TSO<sub>3</sub>. “This filing comes after meetings have taken place with the regulators and additional information has been supplied and reviewed in person. These meetings have also allowed us to discuss the contents of the submission and an approach for its filing”, added Mr. Rumble. “We are pleased and confident with the package that has been assembled and we believe in a successful outcome”.
<br />
<br />The STERIZONE<sup>®</sup> 125L+ Sterilizer is covered by a global commercial agreement between TSO<sub>3</sub> and 3M™ under the brand name 3M™ Optreoz™ 125Z. 3M™ has initiated a phased introduction targeting 15 countries this year, in markets where regulatory clearances have already been received. Current regulatory clearances cover Canada, the European Union and selected countries of Latin America and Asia Pacific.
<br />
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br />
<br />-30-
<br />
<br /><strong>Source: </strong>	TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information: </strong>	
<br />Caroline Côté
<br />Director, Corporate Communications and Investor Relations
<br />(418) 651-0003, Ext. 237
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 FILES FOR COMMERCIAL CLEARANCE IN THE UNITED STATES</dc:subject>
      <dc:date>2011-06-30 13:50:00</dc:date>
    </item>
    <item>
      <title>TSO3 BEGINS SHIPMENT OF NEW 3M™ OPTREOZ™ STERILIZERS TO CUSTOMER LOCATIONS</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-begins-shipment-new-293.php</link>
      <description>Quebec City, June 7, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, today announced that it has begun to support 3M™ commercialization efforts by shipping new 3M™ Optreoz™ 125-Z sterilizers for installation at customer locations. 

“Months of collaboration with our channel partner are now showing tangible results”, said R.M. (Ric) Rumble, President and CEO of TSO3. “We are beginning to ship units from our backlog and have additional shipments planned for next month and beyond. Our efforts are now in direct support of our channel partner’s phased introduction of the new technology, as was previously outlined during our Annual General Meeting of Shareholders (AGM)”, Mr. Rumble concluded.

As part of the recent AGM held on May 11, 2011, information was shared by TSO3 including examples of launch materials provided by 3M™ regarding their approach to launching the 3M™ Optreoz™ 125-Z Sterilizer. This material includes product positioning to customers and launch sequences in more than a dozen countries, as well a communications strategy, examples of print literature and E-tools.  The webcast of this event and the PowerPoint presentation will be archived for a period of 90 days and are available at http://www.cnw.ca/en/webcast/viewEvent.cgi?eventID=3474900

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. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

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 
418 576-2333
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Quebec City, June 7, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, today announced that it has begun to support 3M™ commercialization efforts by shipping new 3M™ Optreoz™ 125-Z sterilizers for installation at customer locations. 
<br />
<br />“Months of collaboration with our channel partner are now showing tangible results”, said R.M. (Ric) Rumble, President and CEO of TSO<sub>3</sub>. “We are beginning to ship units from our backlog and have additional shipments planned for next month and beyond. Our efforts are now in direct support of our channel partner’s phased introduction of the new technology, as was previously outlined during our Annual General Meeting of Shareholders (AGM)”, Mr. Rumble concluded.
<br />
<br />As part of the recent AGM held on May 11, 2011, information was shared by TSO<sub>3</sub> including examples of launch materials provided by 3M™ regarding their approach to launching the 3M™ Optreoz™ 125-Z Sterilizer. This material includes product positioning to customers and launch sequences in more than a dozen countries, as well a communications strategy, examples of print literature and E-tools.  The webcast of this event and the PowerPoint presentation will be archived for a period of 90 days and are available at <a href="http://www.cnw.ca/en/webcast/viewEvent.cgi?eventID=3474900
<br />">http://www.cnw.ca/en/webcast/viewEvent.cgi?eventID=3474900</a>
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br />
<br />-30-
<br />
<br /><strong>Source: </strong>	TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information: </strong>	
<br />Caroline Côté
<br />Director, Corporate Communications 
<br />418 576-2333
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 BEGINS SHIPMENT OF NEW 3M™ OPTREOZ™ STERILIZERS TO CUSTOMER LOCATIONS</dc:subject>
      <dc:date>2011-06-07 07:35:00</dc:date>
    </item>
    <item>
      <title>TSO3 AND 3M EXPAND AGREEMENT - Increase Field of Use and add OR Product in Development</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-3m-expand-agreement-292.php</link>
      <description>Quebec City, May 19, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings is pleased to announce that the company and 3M™ Infection Prevention Division have amended their December 2009 Global Agreement to include a second product, which is currently in development and destined for use in the operating room (OR). In addition, the companies have agreed to explore the industrial and scientific markets to determine commercial opportunities for the current product (3M™ Optreoz 125-Z).   

“We are pleased that 3M™ has selected to expand their portfolio of products based on the TSO3 technology,” commented R.M. (Ric) Rumble, TSO3’s President and CEO. “The sterilizer in development is designed to be a true solution to the reprocessing needs of the OR and with this agreement, it will be supported by a globally experienced and professional sales team,” Mr. Rumble added. ”The amendment to the contract also allows 3M™ and TSO3 to explore opportunities in the industrial and scientific market segments.” 

TSO3 has previously disclosed only limited details on the small, “purpose-built”, sterilizer currently in development and targeted at the OR market. This product will enable terminal sterilization of packaged complex medical devices such as powered instruments, imaging accessories, as well as complex and expensive rigid and flexible endoscopes currently sterilized in OR sub-sterile reprocessing areas of acute care facilities.

While visiting the TSO3 headquarters in Québec City and touring the plant, Debra A. Rectenwald,  President and General Manager of the 3M™ Infection Prevention Division commented: “We are pleased to   further our work with TSO3  in the OR through the amendment to our original agreement. 3M™ and TSO3 have collaborated closely in preparing to launch the 3M™ Optreoz™ 125-Z in markets where regulatory clearances have been obtained.  Together, we plan to leverage our mutual expertise and knowledge in the critical OR space through this agreement.”   


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. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

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 
418 651-0003, Ext. 237
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Quebec City, May 19, 2011 </strong>– TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings is pleased to announce that the company and 3M™ Infection Prevention Division have amended their December 2009 Global Agreement to include a second product, which is currently in development and destined for use in the operating room (OR). In addition, the companies have agreed to explore the industrial and scientific markets to determine commercial opportunities for the current product (3M™ Optreoz 125-Z).   
<br />
<br />“We are pleased that 3M™ has selected to expand their portfolio of products based on the TSO<sub>3</sub> technology,” commented R.M. (Ric) Rumble, TSO<sub>3</sub>’s President and CEO. “The sterilizer in development is designed to be a true solution to the reprocessing needs of the OR and with this agreement, it will be supported by a globally experienced and professional sales team,” Mr. Rumble added. ”The amendment to the contract also allows 3M™ and TSO<sub>3</sub> to explore opportunities in the industrial and scientific market segments.” 
<br />
<br />TSO<sub>3</sub> has previously disclosed only limited details on the small, “purpose-built”, sterilizer currently in development and targeted at the OR market. This product will enable terminal sterilization of packaged complex medical devices such as powered instruments, imaging accessories, as well as complex and expensive rigid and flexible endoscopes currently sterilized in OR sub-sterile reprocessing areas of acute care facilities.
<br />
<br />While visiting the TSO<sub>3</sub> headquarters in Québec City and touring the plant, Debra A. Rectenwald,  President and General Manager of the 3M™ Infection Prevention Division commented: “We are pleased to   further our work with TSO<sub>3</sub>  in the OR through the amendment to our original agreement. 3M™ and TSO<sub>3</sub> have collaborated closely in preparing to launch the 3M™ Optreoz™ 125-Z in markets where regulatory clearances have been obtained.  Together, we plan to leverage our mutual expertise and knowledge in the critical OR space through this agreement.”   
<br />
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>-30-
<br />
<br />
<br /><strong>Source:</strong> 	TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information:</strong> 	
<br />Caroline Côté
<br />Director, Corporate Communications 
<br />418 651-0003, Ext. 237
<br /><a href="mailto:ccote@tso3.com
<br />">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 AND 3M EXPAND AGREEMENT - Increase Field of Use and add OR Product in Development</dc:subject>
      <dc:date>2011-05-19 06:35:00</dc:date>
    </item>
    <item>
      <title>TSO3 ANNOUNCES FINANCIAL RESULTS FOR Q1 2011</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-announces-financial-291.php</link>
      <description>Highlights of Q1 2011 and activities of recent weeks:

•Completed several months of verification and validation testing; 
•Initiated planning of installations to early adopters; 
•Progressed in development of second product based on new generation technology; 
•Met with US regulatory agency and defined estimated filing date.

Quebec City, May 11, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, posted revenues of $136,628 for the first quarter of 2011 ending March 31, for the sale of supplies, accessories and service contracts for the first generation product. This compares to $144,228 in the first quarter of 2010, for the same type of products. The Company recorded a net loss of $1,880,010 for the first quarter of 2011, or $0.03 per share, compared to a net loss of $2,056,556 or $0.04 for the same period in 2010.

“In the first quarter, we concluded several months of crucial work - the verification and validation as well as the reliability testing for the new sterilizer. This was mandatory to ensure that we produce quality sterilizers that perform consistently to customer expectations”, said R.M. (Ric) Rumble President and CEO of TSO3. 

“As planned and announced in our last investor conference call, we recently conducted a second meeting with the US regulatory agency concerning the new sterilizer.  We are pleased with the exchange of information and the feedback that we received. The meeting allowed us to review our filing strategy and to define a filing date estimate which is now targeted as late June 2011”, said Mr. Rumble. “We remain confident in our ability to obtain the required clearance for the US market”.   

Further details on all areas of the Company’s activities and strategy will be disclosed this afternoon at 3:00 PM (EDST) at the Annual General Meeting of Shareholders.  The meeting will be held at the McCord Museum (J. Armand-Bombardier Theatre), 690 Sherbrooke Street West, Montreal (Québec) and a live audio webcast will be available and can be accessed via the TSO3 website at: http://www.tso3.com/en/investors/financial-reports-webcasts.php. Webcast participants will have the opportunity to send in questions to the TSO3 representatives by using the following email ccote@tso3.com. 

Q1 2011 Conference Call 

TSO3 will host a telephone Conference Call today, May 11, 2011 at 10:30 a.m. (EDST). Analysts and Institutional Investors are invited to participate in the call. The numbers to dial for access are 514 940 2795 (Montréal area), 416 644-3424 (Toronto area) or the Toll-Free number 1-800-594-3790. Other interested parties may listen to the live Webcast of the Conference Call accessible via the TSO3 Website at: http://www.tso3.com/en/investors/financial-reports-webcasts.php. The Webcast will be archived for 90 days.
RESULTS ANALYSIS

In the following paragraphs, we analyze the variances between the first quarter of 2011 and the first quarter of 2010.

Sales

In Q1 2011, sales amounted to $136,628, representing the sale of supplies, accessories and service contracts, compared to $144,228 in 2010 for the same type of products.  No sterilizers were sold in either of the two quarters.

License Revenues

For the first quarter of 2011, the Company recorded an amount of $52,569 as License revenues compared to $44,046 in 2010.  These revenues are related to the commercial agreement signed with 3M™ and correspond to the amortization of the sums received from 3M following the achievement of milestones. They are now presented separately in the statement of loss and comprehensive loss. 

Operating

The operating expenses amounted to $325,068 compared to $340,492 in 2010.  The manufacturing of new generation units, validation of these sterilizers and the improvement of various processes related to production and supply chain constituted the majority of activities during the quarter. 

Sales and Marketing

The sales and marketing expenses amounted to $158,739 compared to $313,043 in 2010.  This variance is due to a decrease in salaries, fringes benefits, and traveling expenses since these activities are now transferred to the responsibility of the channel partner. 

Research and Development

The research and development expenses, which included a R&amp;D tax credit of $75,000 ($76,000 in 2010), amounted to $849,706 compared to $705,055 in 2010.  This variance is due to an increase in salaries, material purchases and professional fees.  This costs increase in the first quarter of 2011 is the result of the substantial work performed during the quarter for the Verification and Validation process and also the work undertaken to develop a new sterilizer designated for the OR Sub-Sterile Area.

Administrative

The administrative expenses amounted to $795,802 compared to $903,912 in 2010.  The decrease is explained by a reduction in salaries and traveling expenses due to the vacancy of the CFO position. It is also explained by lower professional fees related to the review and testing of internal controls.

Net Financial 

The net financial expenses, which are in fact net financial revenues for both quarters, amounted to $60,108 compared to $17,672 in 2010.  This category includes principally bank charges, investment income, changes in the value of investments and foreign exchange gain or loss. The variance between the two periods is the result of a greater appreciation in fair value of investments held.

Liquid Assets 

As of March 31, 2011, cash, cash equivalents and temporary investments amounted to $16,830,386 compared to an amount of $19,120,007 as of December 31, 2010. The Company tightly manages its liquidity to achieve its strategic objectives.

First Quarter Disclosure

The First Quarter Report is available on TSO3’s website at the following address http://www.tso3.com/en/investors/financial-reports-webcasts.php and full Q1 disclosure will shortly be available on SEDAR (www.sedar.com). 

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.  TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low-temperature sterilization processes currently used in hospitals.

The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, to 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.


For further information:

Caroline Côté
Director, Corporate Communications
Cell.: 418 576-2333
ccote@tso3.com
</description>
      <content:encoded><![CDATA[<strong>Highlights of Q1 2011 and activities of recent weeks:</strong>
<br />
<br />•Completed several months of verification and validation testing; 
<br />•Initiated planning of installations to early adopters; 
<br />•Progressed in development of second product based on new generation technology; 
<br />•Met with US regulatory agency and defined estimated filing date.
<br />
<br /><strong>Quebec City, May 11, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, posted revenues of $136,628 for the first quarter of 2011 ending March 31, for the sale of supplies, accessories and service contracts for the first generation product. This compares to $144,228 in the first quarter of 2010, for the same type of products. The Company recorded a net loss of $1,880,010 for the first quarter of 2011, or $0.03 per share, compared to a net loss of $2,056,556 or $0.04 for the same period in 2010.
<br />
<br />“In the first quarter, we concluded several months of crucial work - the verification and validation as well as the reliability testing for the new sterilizer. This was mandatory to ensure that we produce quality sterilizers that perform consistently to customer expectations”, said R.M. (Ric) Rumble President and CEO of TSO<sub>3</sub>. 
<br />
<br />“As planned and announced in our last investor conference call, we recently conducted a second meeting with the US regulatory agency concerning the new sterilizer.  We are pleased with the exchange of information and the feedback that we received. The meeting allowed us to review our filing strategy and to define a filing date estimate which is now targeted as late June 2011”, said Mr. Rumble. “We remain confident in our ability to obtain the required clearance for the US market”.   
<br />
<br />Further details on all areas of the Company’s activities and strategy will be disclosed this afternoon at 3:00 PM (EDST) at the Annual General Meeting of Shareholders.  The meeting will be held at the McCord Museum (J. Armand-Bombardier Theatre), 690 Sherbrooke Street West, Montreal (Québec) and a live audio webcast will be available and can be accessed via the TSO<sub>3</sub> website at: <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a>. Webcast participants will have the opportunity to send in questions to the TSO<sub>3</sub> representatives by using the following email <a href="mailto:ccote@tso3.com">ccote@tso3.com</a>. 
<br />
<br /><strong>Q1 2011 Conference Call </strong>
<br />
<br />TSO<sub>3</sub> will host a telephone Conference Call today, May 11, 2011 at 10:30 a.m. (EDST). Analysts and Institutional Investors are invited to participate in the call. The numbers to dial for access are 514 940 2795 (Montréal area), 416 644-3424 (Toronto area) or the Toll-Free number 1-800-594-3790. Other interested parties may listen to the live Webcast of the Conference Call accessible via the TSO<sub>3</sub> Website at: <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a>. The Webcast will be archived for 90 days.
<br />RESULTS ANALYSIS
<br />
<br />In the following paragraphs, we analyze the variances between the first quarter of 2011 and the first quarter of 2010.
<br />
<br /><strong>Sales</strong>
<br />
<br />In Q1 2011, sales amounted to $136,628, representing the sale of supplies, accessories and service contracts, compared to $144,228 in 2010 for the same type of products.  No sterilizers were sold in either of the two quarters.
<br />
<br /><strong>License Revenues</strong>
<br />
<br />For the first quarter of 2011, the Company recorded an amount of $52,569 as License revenues compared to $44,046 in 2010.  These revenues are related to the commercial agreement signed with 3M™ and correspond to the amortization of the sums received from 3M following the achievement of milestones. They are now presented separately in the statement of loss and comprehensive loss. 
<br />
<br /><strong>Operating</strong>
<br />
<br />The operating expenses amounted to $325,068 compared to $340,492 in 2010.  The manufacturing of new generation units, validation of these sterilizers and the improvement of various processes related to production and supply chain constituted the majority of activities during the quarter. 
<br />
<br /><strong>Sales and Marketing</strong>
<br />
<br />The sales and marketing expenses amounted to $158,739 compared to $313,043 in 2010.  This variance is due to a decrease in salaries, fringes benefits, and traveling expenses since these activities are now transferred to the responsibility of the channel partner. 
<br />
<br /><strong>Research and Development</strong>
<br />
<br />The research and development expenses, which included a R&D tax credit of $75,000 ($76,000 in 2010), amounted to $849,706 compared to $705,055 in 2010.  This variance is due to an increase in salaries, material purchases and professional fees.  This costs increase in the first quarter of 2011 is the result of the substantial work performed during the quarter for the Verification and Validation process and also the work undertaken to develop a new sterilizer designated for the OR Sub-Sterile Area.
<br />
<br /><strong>Administrative</strong>
<br />
<br />The administrative expenses amounted to $795,802 compared to $903,912 in 2010.  The decrease is explained by a reduction in salaries and traveling expenses due to the vacancy of the CFO position. It is also explained by lower professional fees related to the review and testing of internal controls.
<br />
<br /><strong>Net Financial </strong>
<br />
<br />The net financial expenses, which are in fact net financial revenues for both quarters, amounted to $60,108 compared to $17,672 in 2010.  This category includes principally bank charges, investment income, changes in the value of investments and foreign exchange gain or loss. The variance between the two periods is the result of a greater appreciation in fair value of investments held.
<br />
<br /><strong>Liquid Assets </strong>
<br />
<br />As of March 31, 2011, cash, cash equivalents and temporary investments amounted to $16,830,386 compared to an amount of $19,120,007 as of December 31, 2010. The Company tightly manages its liquidity to achieve its strategic objectives.
<br />
<br /><strong>First Quarter Disclosure</strong>
<br />
<br />The First Quarter Report is available on TSO<sub>3</sub>’s website at the following address <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a> and full Q1 disclosure will shortly be available on SEDAR (<a href="www.sedar.com">www.sedar.com</a>). 
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential.  TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solution to other low-temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, to those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br /> 
<br />
<br />-30-
<br />
<br /><strong>Source:</strong> TSO<sub>3</sub> Inc.
<br />
<br />
<br /><strong>For further information</strong>:
<br />
<br />Caroline Côté
<br />Director, Corporate Communications
<br />Cell.: 418 576-2333
<br /><a href="ccote@tso3.com
<br />">ccote@tso3.com</a>
<br />]]></content:encoded>
      <dc:subject>TSO3 ANNOUNCES FINANCIAL RESULTS FOR Q1 2011</dc:subject>
      <dc:date>2011-05-11 06:35:00</dc:date>
    </item>
    <item>
      <title>TSO3 Announces the Appointment of a New CFO</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-announces-appointment-290.php</link>
      <description>Quebec City, May 9, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, is pleased to announce the appointment of Mr. Benoît Deschamps to the position of Chief Financial Officer and Vice President of Finance, effective June 15, 2011. 

“Benoit Deschamps is a senior finance executive with an impressive track record of accomplishments focused on investment and financing within large companies and entrepreneurial organizations”, said R.M. (Ric) Rumble, CEO of TSO3. “Benoît joins us at a time when his expertise and guidance will be most beneficial to TSO3 as we look to grow our business further. We are very pleased to see him join the Company”.  

Mr. Deschamps most recently held the position of Executive Vice President and Chief Financial Officer for Mechtronix World Corporation.  Prior to this, he held positions of Vice President and Treasurer at Videotron where he played a prominent role in the acquisition of Videotron by Quebecor, and Vice President, Private Investments at the Caisse de Dépôt et Placement du Québec where he was Vice-President in the Private Investment group and responsible for private and public corporate debt investments as well as structured combined debt-and-equity transactions. Mr. Deschamps holds a M.B.A. in Finance and a Ph.D. in Business Administration (Finance).  He was also an Associate Professor of Finance at both the HEC, in Montreal and Georgia State University, in Atlanta, where he taught in areas covering corporate finance at the bachelor, master and doctorate levels.

“I look forward to joining an entrepreneurial business such as TSO3,  I believe I am joining the Company at an inflection point in its history and look forward to contributing at both the operational and strategic levels”, commented Benoît Deschamps.


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.  TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.

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
(418) 651-0003, Ext. 237
Email: ccote@tso3.com </description>
      <content:encoded><![CDATA[<strong>Quebec City, May 9, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) an innovator in sterilization technology for medical devices in healthcare settings, is pleased to announce the appointment of Mr. Benoît Deschamps to the position of Chief Financial Officer and Vice President of Finance, effective June 15, 2011. 
<br />
<br />“Benoit Deschamps is a senior finance executive with an impressive track record of accomplishments focused on investment and financing within large companies and entrepreneurial organizations”, said R.M. (Ric) Rumble, CEO of TSO<sub>3</sub>. “Benoît joins us at a time when his expertise and guidance will be most beneficial to TSO<sub>3</sub> as we look to grow our business further. We are very pleased to see him join the Company”.  
<br />
<br />Mr. Deschamps most recently held the position of Executive Vice President and Chief Financial Officer for Mechtronix World Corporation.  Prior to this, he held positions of Vice President and Treasurer at Videotron where he played a prominent role in the acquisition of Videotron by Quebecor, and Vice President, Private Investments at the Caisse de Dépôt et Placement du Québec where he was Vice-President in the Private Investment group and responsible for private and public corporate debt investments as well as structured combined debt-and-equity transactions. Mr. Deschamps holds a M.B.A. in Finance and a Ph.D. in Business Administration (Finance).  He was also an Associate Professor of Finance at both the HEC, in Montreal and Georgia State University, in Atlanta, where he taught in areas covering corporate finance at the bachelor, master and doctorate levels.
<br />
<br />“I look forward to joining an entrepreneurial business such as TSO<sub>3</sub>,  I believe I am joining the Company at an inflection point in its history and look forward to contributing at both the operational and strategic levels”, commented Benoît Deschamps.
<br />
<br />
<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential.  TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br />
<br />-30-
<br />
<br />
<br /><strong>Source:</strong> TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information:</strong>
<br />Caroline Côté
<br />Director, Corporate Communications
<br />(418) 651-0003, Ext. 237
<br />Email: <a href="mailto:ccote@tso3.com 
<br />">ccote@tso3.com </a>]]></content:encoded>
      <dc:subject>TSO3 Announces the Appointment of a New CFO</dc:subject>
      <dc:date>2011-05-09 06:35:00</dc:date>
    </item>
    <item>
      <title>TSO3 to Disclose First Quarter 2011 Financial Results and Hold Annual General Meeting of Shareholders May 11, 2011</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-disclose-first-quarter-289.php</link>
      <description>Quebec City, May 2, 2011 – TSO3 Inc. (“TSO3”) (TSX: TOS) will report first quarter (Q1) 2011 financial results, for the period ending March 31, 2011 and hold its fiscal 2010 Annual General Meeting of Shareholders on Wednesday May 11, 2011. 

TSO3 will host a Conference Call and a Webcast at 10:30 A.M. (EDST) the same day to discuss Q1 2011 financial results. Analysts and Institutional Investors are invited to participate in the call and the numbers to dial for access are 514 940-2795 (Montréal area), 416 644-3424 (Toronto area) or the Toll-Free number 1-800-594-3790. 

The Annual General Meeting of Shareholders will be held at the McCord Museum (J. Armand-Bombardier Theatre), 690 Sherbrooke Street West, Montreal (Québec) at 3:00 P.M. (EDST). 

To listen to the live webcasts of these events, login via TSO3's website, in the “Investors” section, under the item “Webcasts” (http://www.tso3.com/en/investors/financial-reports-webcasts.php). The Webcasts will be archived for a 90-day period.


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.  TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.

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
(418) 651-0003, Ext. 237
Email: ccote@tso3.com 
</description>
      <content:encoded><![CDATA[<strong>Quebec City, May 2, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) (TSX: TOS) will report first quarter (Q1) 2011 financial results, for the period ending March 31, 2011 and hold its fiscal 2010 Annual General Meeting of Shareholders on Wednesday May 11, 2011. 
<br />
<br />TSO<sub>3</sub> will host a Conference Call and a Webcast at 10:30 A.M. (EDST) the same day to discuss Q1 2011 financial results. Analysts and Institutional Investors are invited to participate in the call and the numbers to dial for access are 514 940-2795 (Montréal area), 416 644-3424 (Toronto area) or the Toll-Free number 1-800-594-3790. 
<br />
<br />The Annual General Meeting of Shareholders will be held at the McCord Museum (J. Armand-Bombardier Theatre), 690 Sherbrooke Street West, Montreal (Québec) at 3:00 P.M. (EDST). 
<br />
<br />To listen to the live webcasts of these events, login via TSO<sub>3</sub>'s website, in the “Investors” section, under the item “Webcasts” (<a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a>). The Webcasts will be archived for a 90-day period.
<br />
<br />
<br />About TSO<sub>3</sub>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential.  TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.
<br />
<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br />
<br />-30-
<br />
<br /><strong>
<br />Source: </strong>TSO<sub>3</sub> Inc.
<br />
<br /><strong>Information:</strong>
<br />Caroline Côté
<br />Director, Corporate Communications
<br />(418) 651-0003, Ext. 237
<br />Email: <a href="mailto:ccote@tso3.com">ccote@tso3.com</a> 
<br />]]></content:encoded>
      <dc:subject>TSO3 to Disclose First Quarter 2011 Financial Results and Hold Annual General Meeting of Shareholders May 11, 2011</dc:subject>
      <dc:date>2011-05-02 06:35:00</dc:date>
    </item>
    <item>
      <title>TSO3 DISCLOSES FOURTH QUARTER AND FULL YEAR 2010 FISCAL RESULTS AND UPDATES ON SUBSEQUENT ACTIVITIES</title>
      <link>http://www.tso3.com/en/news-events/news-tso3-discloses-fourth-quarter-287.php</link>
      <description>Highlights of 2010 events and subsequent months’ activities:

Regulatory:

	Secured Health Canada commercial authorization and European Notification of Conformity (CE Mark) giving approval to place units in Canada and in the European Union;
	Progressed towards refiling 510(k) application for US regulatory clearance: face-to-face meeting with the regulators in the upcoming weeks.

Commercial:
	3M™ announced rebranding of the sterilizer to the 3M™ Optreoz™ 125-Z using the TSO3 STERIZONE® Technology;
	Shipped sterilizers to 3M™ worldwide locations for training purposes;
	Took orders and built backlog in each of the last three quarters of the year for shipment to Canadian customers in 2011;
	Progressed in reliability testing in order to ship product out to customer locations in cleared markets later this year; 
	Initiated market research for new product development targeted at the Operating Room (OR) market segment.

Quebec City, March 16, 2011 – TSO3 Inc. (“TSO3”) an innovator in sterilization technology for medical devices in healthcare settings using ozone, today reported sales for the fiscal year ending December 31, 2010 totalling $939,285 representing the sale of four new generation sterilizers (3M™ Optreoz™ 125-Z) to 3M™ for training purposes. This compares to $1.3 million the previous year for the sale of the first generation sterilizers sold directly to end-users (TSO3 STERIZONE® 125L). 

As a result of the ongoing transition to its new generation sterilizer, which is sold by a channel partner, TSO3’s revenues decreased in 2010. However, expense control contributed to a significant decrease in the Company’s net loss. For the fiscal year ending December 31, 2010, TSO3 recorded a net loss of $7.7 million or $0.14 per share, compared to $9.2 million one year earlier or $0.19, a $0.05 decrease. 

“2010 was a year of tremendous activity and a year during which we experienced many internal improvements in processes necessary for our growth”, commented Mr. R.M. (Ric) Rumble, President and Chief Executive Officer of TSO3. “Process improvement and reliability testing are continuing while we work towards shipping our backlog, through our channel partner, to meet customer-want dates later this year”, continued Mr. Rumble.

“As most of you are aware, we, as well as many others, are navigating through a changing US regulatory process. After having met face-to-face with the regulators last year, we prepared and submitted a new set of documents and were hoping to meet face to face again earlier this year.  After a short delay, we are happy to say that we were very recently notified of a meeting date planned to take place in the next few weeks. We are pleased to have the opportunity to discuss in person the additional information that has been supplied to the US regulators, and it is our hope that this meeting will clear the way to submitting the amended documentation in the first half of 2011”, added Mr. Rumble.   

“Looking towards the future, we will follow our development process for the new OR sterilizer with the expectation of freezing the design in 2011, and holding a commercial event in 2012. We will also be open to opportunities within our market space of healthcare sterile reprocessing that might accelerate our growth, while supporting our intention of enabling better health care”, concluded Mr. Rumble.


2010 ANNUAL REVIEW

Rigorous process adoption and implementation  

After signing a global distribution agreement with 3M™ late in December 2009, for the distribution of its new generation sterilizer (3M™ Optreoz™ 125-Z), offering superior efficacy and throughput, in 2010 TSO3 migrated towards increased internal controls to meet global 3M quality standards.

Regulatory and commercial activities status

In 2010, backlog started to build for deliveries to Canadian customer locations in 2011. 

While TSO3 received regulatory clearances from both Health Canada and the European Regulatory Body early in the year, the Company did not make the anticipated progress with the US Regulatory Agency it had hoped for, impacting the global roll-out strategy of 3M™ and the ability to upgrade some of the 24 first-generation sterilizers (TSO3  STERIZONE® 125L) sold to US customers. 

Mid-year 2010, the US Regulatory Agency announced it was changing its processes and expectations for products seeking 510(k) clearance and TSO3, like many others, was caught in the midst of these changes. Since then, the Company has had several productive discussions and plans to re-file a new 510(k) shortly. The company remains firm in its belief that the new generation sterilizer will successfully clear the US regulatory process; however, it cannot predict the timing of such an event.
 
STRATEGY: 2010 TO 2012

Building structure and skills

In its updated strategic plan presented mid-2010, TSO3 addressed requirements for the Company’s organizational structure over the next few years. TSO3 set out timelines and approaches to create fundamental business processes expected to contribute to the Company’s ongoing success. 

Along these lines, TSO3 continued its reduction in sales and marketing resources as a result of the commercial agreement with 3M™ and pursued additional talent and skill sets within its R&amp;D and Operations areas, notably welcoming in new senior leadership in both its engineering and supply chain departments.  

Moving into 2011, TSO3 is still pursuing the recruitment of a new CFO as well as other defined talents to further strengthen its structure.

Expanding the portfolio of products

TSO3 intends to focus on its core competency, which is rapid research and prototyping of sterilization systems for healthcare settings. The Company plans to expand its portfolio through internal development of new products having significant revenue generating opportunities.

TSO3 technology, combining hydrogen peroxide and ozone, enables terminal sterilization and cost-effective throughput of medical devices that can be favorably applied to multiple segments of the low temperature sterilization market. 

In 2010, TSO3 completed the research that is now used to support the next development project: a unit designed for the specific needs of the OR Sub-Sterile Area.  The Company’s assessment supports its belief that this market is substantial in size and looking for the type of solution TSO3 can provide with its enhanced sterilization platform.

To view the entire release, as well as the management discussion and analysis, click here.  
Conference call details

TSO3 will host a conference call this morning at 10:30 am (EDST). Analysts and institutional investors are invited to participate. The numbers to dial for access are 514-940-2795 (Montréal area), 416-644-3425 (Toronto area) or the toll-free number 1 877-974-0445. Other interested parties may listen to the live Webcast of the Conference Call accessible via the TSO3 Web site at: www.tso3.com. The Webcast will be archived for 90 days.

Fourth Quarter and Fiscal 2010 Results Disclosure

The 2010 Annual Report is available on the TSO3 Web site at the following address: http://www.tso3.com/en/investors/financial-reports-webcasts.php and full Y10 disclosure will shortly be available on SEDAR (www.sedar.com). 

 
FINANCIAL HIGHLIGHTS 

Effectively managed financial resources
•Additional funds secured

	In March 2010, TSO3 completed a financing round of $16M.

	TSO3 received an additional $526,250 from 3M™ for milestone achievement (European commercial authorization for the new generation sterilizer).

	The Company benefited from a Quebec Government R&amp;D tax credit of $371,000.

•Controlled Expenses

	17% decrease in expenses: $9,176,415 in 2010 compared to $11,010,275 in 2009 amounting to a lower burn rate ($526,292 per month in 2010 compared to $575,861 per month in 2009).


•Strengthened cash position

	Cash, cash equivalents and temporary investments were $19,120,007 as of December 31, 2010 compared to $10,671,845 as of December 31, 2009.

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.  TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.

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.

For further information: 	

Caroline Côté
Director, Corporate Communications and Investor Relations
418 651-0003, Ext. 237			
ccote@tso3.com</description>
      <content:encoded><![CDATA[<strong>Highlights of 2010 events and subsequent months’ activities:</strong>
<br />
<br />Regulatory:
<br />
<br />	Secured Health Canada commercial authorization and European Notification of Conformity (CE Mark) giving approval to place units in Canada and in the European Union;
<br />	Progressed towards refiling 510(k) application for US regulatory clearance: face-to-face meeting with the regulators in the upcoming weeks.
<br />
<br />Commercial:
<br />	3M™ announced rebranding of the sterilizer to the 3M™ Optreoz™ 125-Z using the TSO<sub>3</sub> STERIZONE<sup>®</sup> Technology;
<br />	Shipped sterilizers to 3M™ worldwide locations for training purposes;
<br />	Took orders and built backlog in each of the last three quarters of the year for shipment to Canadian customers in 2011;
<br />	Progressed in reliability testing in order to ship product out to customer locations in cleared markets later this year; 
<br />	Initiated market research for new product development targeted at the Operating Room (OR) market segment.
<br />
<br /><strong>Quebec City, March 16, 2011</strong> – TSO<sub>3</sub> Inc. (“TSO<sub>3</sub>”) an innovator in sterilization technology for medical devices in healthcare settings using ozone, today reported sales for the fiscal year ending December 31, 2010 totalling $939,285 representing the sale of four new generation sterilizers (3M™ Optreoz™ 125-Z) to 3M™ for training purposes. This compares to $1.3 million the previous year for the sale of the first generation sterilizers sold directly to end-users (TSO<sub>3</sub> STERIZONE<sup>®</sup> 125L). 
<br />
<br />As a result of the ongoing transition to its new generation sterilizer, which is sold by a channel partner, TSO<sub>3</sub>’s revenues decreased in 2010. However, expense control contributed to a significant decrease in the Company’s net loss. For the fiscal year ending December 31, 2010, TSO<sub>3</sub> recorded a net loss of $7.7 million or $0.14 per share, compared to $9.2 million one year earlier or $0.19, a $0.05 decrease. 
<br />
<br />“2010 was a year of tremendous activity and a year during which we experienced many internal improvements in processes necessary for our growth”, commented Mr. R.M. (Ric) Rumble, President and Chief Executive Officer of TSO<sub>3</sub>. “Process improvement and reliability testing are continuing while we work towards shipping our backlog, through our channel partner, to meet customer-want dates later this year”, continued Mr. Rumble.
<br />
<br />“As most of you are aware, we, as well as many others, are navigating through a changing US regulatory process. After having met face-to-face with the regulators last year, we prepared and submitted a new set of documents and were hoping to meet face to face again earlier this year.  After a short delay, we are happy to say that we were very recently notified of a meeting date planned to take place in the next few weeks. We are pleased to have the opportunity to discuss in person the additional information that has been supplied to the US regulators, and it is our hope that this meeting will clear the way to submitting the amended documentation in the first half of 2011”, added Mr. Rumble.   
<br />
<br />“Looking towards the future, we will follow our development process for the new OR sterilizer with the expectation of freezing the design in 2011, and holding a commercial event in 2012. We will also be open to opportunities within our market space of healthcare sterile reprocessing that might accelerate our growth, while supporting our intention of enabling better health care”, concluded Mr. Rumble.
<br />
<br />
<br /><strong>2010 ANNUAL REVIEW</strong>
<br />
<br /><strong>Rigorous process adoption and implementation</strong>  
<br />
<br />After signing a global distribution agreement with 3M™ late in December 2009, for the distribution of its new generation sterilizer (3M™ Optreoz™ 125-Z), offering superior efficacy and throughput, in 2010 TSO<sub>3</sub> migrated towards increased internal controls to meet global 3M quality standards.
<br />
<br /><strong>Regulatory and commercial activities status</strong>
<br />
<br />In 2010, backlog started to build for deliveries to Canadian customer locations in 2011. 
<br />
<br />While TSO<sub>3</sub> received regulatory clearances from both Health Canada and the European Regulatory Body early in the year, the Company did not make the anticipated progress with the US Regulatory Agency it had hoped for, impacting the global roll-out strategy of 3M™ and the ability to upgrade some of the 24 first-generation sterilizers (TSO<sub>3</sub>  STERIZONE<sup>®</sup> 125L) sold to US customers. 
<br />
<br />Mid-year 2010, the US Regulatory Agency announced it was changing its processes and expectations for products seeking 510(k) clearance and TSO<sub>3</sub>, like many others, was caught in the midst of these changes. Since then, the Company has had several productive discussions and plans to re-file a new 510(k) shortly. The company remains firm in its belief that the new generation sterilizer will successfully clear the US regulatory process; however, it cannot predict the timing of such an event.
<br /> 
<br /><strong>STRATEGY: 2010 TO 2012</strong>
<br />
<br /><strong>Building structure and skills</strong>
<br />
<br />In its updated strategic plan presented mid-2010, TSO<sub>3</sub> addressed requirements for the Company’s organizational structure over the next few years. TSO<sub>3</sub> set out timelines and approaches to create fundamental business processes expected to contribute to the Company’s ongoing success. 
<br />
<br />Along these lines, TSO<sub>3</sub> continued its reduction in sales and marketing resources as a result of the commercial agreement with 3M™ and pursued additional talent and skill sets within its R&D and Operations areas, notably welcoming in new senior leadership in both its engineering and supply chain departments.  
<br />
<br />Moving into 2011, TSO<sub>3</sub> is still pursuing the recruitment of a new CFO as well as other defined talents to further strengthen its structure.
<br />
<br /><strong>Expanding the portfolio of products</strong>
<br />
<br />TSO<sub>3</sub> intends to focus on its core competency, which is rapid research and prototyping of sterilization systems for healthcare settings. The Company plans to expand its portfolio through internal development of new products having significant revenue generating opportunities.
<br />
<br />TSO<sub>3</sub> technology, combining hydrogen peroxide and ozone, enables terminal sterilization and cost-effective throughput of medical devices that can be favorably applied to multiple segments of the low temperature sterilization market. 
<br />
<br />In 2010, TSO<sub>3</sub> completed the research that is now used to support the next development project: a unit designed for the specific needs of the OR Sub-Sterile Area.  The Company’s assessment supports its belief that this market is substantial in size and looking for the type of solution TSO<sub>3</sub> can provide with its enhanced sterilization platform.
<br />
<br /><em>To view the entire release, as well as the management discussion and analysis, click <a href="http://www.cnw.ca/en/search/index.cgi?Flags=31&Submit=GO&query=tso3&GO=Go">here</a>. </em> 
<br />Conference call details
<br />
<br />TSO<sub>3</sub> will host a conference call this morning at 10:30 am (EDST). Analysts and institutional investors are invited to participate. The numbers to dial for access are 514-940-2795 (Montréal area), 416-644-3425 (Toronto area) or the toll-free number 1 877-974-0445. Other interested parties may listen to the live Webcast of the Conference Call accessible via the TSO<sub>3</sub> Web site at: <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">www.tso3.com</a>. The Webcast will be archived for 90 days.
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<br /><strong>Fourth Quarter and Fiscal 2010 Results Disclosure</strong>
<br />
<br />The 2010 Annual Report is available on the TSO<sub>3</sub> Web site at the following address: <a href="http://www.tso3.com/en/investors/financial-reports-webcasts.php">http://www.tso3.com/en/investors/financial-reports-webcasts.php</a> and full Y10 disclosure will shortly be available on SEDAR (<a href="http://www.sedar.com">www.sedar.com</a>). 
<br />
<br /> 
<br /><strong>FINANCIAL HIGHLIGHTS </strong>
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<br /><strong>Effectively managed financial resources</strong>
<br />•Additional funds secured
<br />
<br />	In March 2010, TSO<sub>3</sub> completed a financing round of $16M.
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<br />	TSO<sub>3</sub> received an additional $526,250 from 3M™ for milestone achievement (European commercial authorization for the new generation sterilizer).
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<br />	The Company benefited from a Quebec Government R&D tax credit of $371,000.
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<br />•Controlled Expenses
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<br />	17% decrease in expenses: $9,176,415 in 2010 compared to $11,010,275 in 2009 amounting to a lower burn rate ($526,292 per month in 2010 compared to $575,861 per month in 2009).
<br />
<br />
<br />•Strengthened cash position
<br />
<br />	Cash, cash equivalents and temporary investments were $19,120,007 as of December 31, 2010 compared to $10,671,845 as of December 31, 2009.
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<br /><strong>About TSO<sub>3</sub></strong>
<br />
<br />TSO<sub>3</sub>, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential.  TSO<sub>3</sub> designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals.
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<br /><em>The statements in this release and oral statements made by representatives of TSO<sub>3</sub> relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO<sub>3</sub>) 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 TSO<sub>3</sub> to obtain financing on favourable terms and other
<br />risks and uncertainties.
<br />
<br />The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.</em>
<br /> 
<br />
<br />-30-
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<br /><strong>Source: </strong>TSO<sub>3</sub> Inc.
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<br /><strong>For further information: </strong>	
<br />
<br />Caroline Côté
<br />Director, Corporate Communications and Investor Relations
<br />418 651-0003, Ext. 237			
<br /><a href="mailto:ccote@tso3.com">ccote@tso3.com</a>]]></content:encoded>
      <dc:subject>TSO3 DISCLOSES FOURTH QUARTER AND FULL YEAR 2010 FISCAL RESULTS AND UPDATES ON SUBSEQUENT ACTIVITIES</dc:subject>
      <dc:date>2011-03-16 06:35:00</dc:date>
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