TSO3 and 3M agree to global channel partnership - 3M to begin rollout in
sequential markets as regulatory clearances are received

QUEBEC CITY, Dec. 16 /CNW Telbec/ - TSO3 Inc. ("TSO3") (TSX: TOS) and 3M (MMM) today announced that an agreement has been reached for 3M to be the exclusive supplier and distributor of TSO3's STERIZONE(R) 125L+ Sterilizer. The partnership with TSO3, an innovator in low temperature sterilization technology for medical devices in healthcare settings through the use of ozone, will include new cycles to reach acute care facilities through 3M's global sales channel. This agreement, combined with recent improvements to the sterilizer performance in both cycle time and device compatibility, represents a significant step in the move to accelerate the product's adoption in the global marketplace.

"Our enhanced product offering, having three significantly faster and gentler cycles, makes the STERIZONE(R) Sterilization System an excellent alternative to shortcomings found in existing low temperature sterilization products. Our ability to sterilize a wide range of general surgical instruments, rigid channelled devices as well as simple and complex flexible endoscopes makes us unique and a single solution to what has historically required two or more sterilization technologies", Stated R.M. (Ric) Rumble, President and CEO of TSO3. "The agreement signed today with 3M pairs innovation in technology with innovation in marketing, sales and service on a global scale. It supports 3M's existing Infection Prevention business strategy, while significantly enhancing market penetration of the TSO3 technology. It is an excellent fit for our respective organizations and more importantly our mutual customers", Mr. Rumble continued.

While the details of the agreement are not being released, provisions include an exclusive license fee of which a portion is to be paid upfront, with milestone payments to be made linked to regulatory clearances, and, minimum purchases defined on an annual basis.

"We are very pleased to be able to offer this innovative technology to acute care settings for low temperature sterilization," stated Debra A. Rectenwald, Vice President and General Manager of the 3M Infection Prevention Division. "This technology is aligned with our 3M Infection Prevention goals to partner with hospitals to reduce hospital-acquired infections (HAIs) and to meet the needs of our customers and the patients they serve. The new agreement with TSO3 includes regional commercialization of the products as regulatory clearance or registration is obtained and we are enthusiastic to be able to offer this unique technology globally".

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 US $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 combines attributes that answer market needs for: efficacy, 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 rigid endoscopes having a single stainless steel channel. In 2009, the Company received clearance from Health Canada and the United States regulatory agency for sterilization of additional complex medical devices, including multi-channel flexible endoscopes.

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

The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO3) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other risks and uncertainties.

The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.

For further information: Caroline Côté, TSO3, [phone], ext. 237, [email protected]; Mary Clemens, 3M, [phone], [email protected]