TSO3 enters into exclusive negotiations with 3M as global channel partner

Negotiations include recent advances in cycle design which increases the utility of the STERIZONE(R) 125L Sterilizer

TSO3 Inc. ("TSO3") (TSX: TOS) is pleased to announce that it has entered into a 90 day exclusive negotiation period with 3M (NYSE: MMM), a leader in the Infection Prevention Market with operations in over 60 countries, for the purpose of completing a global channel partner agreement. These negotiations are pursuant to a signed Letter of Intent and Term Sheet between the companies, involving the exclusive supply and distribution of TSO3's STERIZONE(R) 125L Sterilizer for acute care facilities through 3M's global sales channel.

The company also announced that included in the negotiations are advances in cycle design recently defined by TSO3, which will be included as part of the product as well as offered to existing customers once cleared by the appropriate regulatory agencies. These advances include additional cycles all substantially faster then the current cycle and all with improved materials compatibility. These cycles are tailored towards a defined set of customer needs.

"We are pleased to begin definitive negotiations with 3M", commented Mr. Ric Rumble TSO3's President and CEO. "We firmly believe that our technology, including recent advances in cycle design, offers global market appeal. 3M is the recognized global innovator in sterility assurance products and as the market leader in 100% Ethylene Oxide sterilization systems, has a long and respected history in the low temperature sterilization market segment. The combination of our products and their sales and marketing capabilities create increased commercial strength."

TSO3 has outlined in the past its plans to engineer additional cycles that could be added to the existing sterilizer, in order to offer increased utility of the device for both current and future customers. "Our work in this area has been extremely rewarding and we are very pleased with the reaction to our advances in cycle development. Plans and timelines to submit the new cycles for regulatory clearance are set and we are diligently working to meet these milestones. More details about these new cycles will be available shortly" continued Mr. Rumble.

"We were very impressed with the capabilities of the TSO3 STERIZONE(R) Sterilizer and the utility it offers to increase sterilization throughput in a cost effective, fast and eco-friendly manner. 3M has a long history of bringing innovative products and services to the sterilization assurance marketplace and we look forward to finalizing an agreement with TSO3 to sell the STERIZONE(R) 125L Sterilizer through our operations worldwide", said Debra Rectenwald, Vice President and General Manager, 3M Infection Prevention Division.

Over the past months, TSO3 has outlined its desire to accomplish increased utility of its sterilizer, develop relationships leading to a channel partner and increase market opportunities via expansion outside of North America. "While still a work in progress, we are more than pleased with the tangible progress in each of these areas", concluded Mr. Rumble.

About 3M Infection Prevention Division

The 3M Infection Prevention Division offers healthcare professionals leadership solutions to minimize the risks of healthcare-associated infections. Combining science and technology, 3M Infection Prevention is built upon more than 40 distinct technology platforms and a comprehensive portfolio of quality products that help the healthcare industry define and address current infection prevention best practices. 3M Infection Prevention remains a trusted partner committed to helping customers lead the way in detecting, preventing and controlling the risk of infection. For more information, visit www.3M.com/infectionprevention.

About 3M

A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M's core strength is applying its more than 40 distinct technology platforms - often in combination - to a wide array of customer needs. With $24 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 60 countries. For more information, visit www.3M.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. The Company's first product, the TSO3 STERIZONE(R) 125L Sterilizer, is designed for sterile processing centers in the hospital environment. The Company believes that its technology represents an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals.

In contrast to other methods, the ozone sterilization process developed and patented by TSO3 meets all standards required by the evolution in sterilization needs, which are: significant costs savings, increased safety for patients and hospital staff, and a "green" environmentally safe process.

The TSO3 STERIZONE(R) 125L Sterilizer is cleared for commercialization by the US and Canadian regulatory agencies for sterilization of metal and heat sensitive instruments, as well as for devices with diffusion-restricted spaces, such as the hinged portion of haemostats, forceps and scissors and rigid endoscopes having a single stainless steel lumen as small as 0.9 mm internal diameter and 485 mm long. In 2009, the Company received clearance from Health Canada for sterilization of additional complex medical instruments, including multi-channelled flexible endoscopes.

For more information about TSO3, visit the Company's Web site at www.tso3.com

3M is a registered trademark of 3M Company.

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.

    
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Contacts

Caroline Côté
Director
Corporate Communications and IR
(418) 651-0003
Ext. 237
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Source: TSO3 Inc.