TSO3 Reports Third Quarter 2015 Financial Results

Q3 Revenues Ramp to $1.2 Million, Driven by U.S. Commercial Rollout of STERIZONE^® VP4 Sterilizer
Build-Out of U.S. Distribution and Customer Support Facility Complete

QUÉBEC CITY, Nov. 4, 2015 /CNW Telbec/ - TSO₃ Inc. (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, reported financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 Highlights vs. Year-Ago Quarter

• Shipped seven STERIZONE^® VP4 Sterilizers in the U.S.
• Revenues totaled $1.2 million versus $98,000.
• Completed build-out of U.S. distribution and customer support facility.
• Submitted required documentation to Health Canada in support of commercializing the STERIZONE^® VP4 Sterilizer.
• Pursued extended claims for its STERIZONE^® Sterilizer for the Canadian, U.S. and European markets.
• Received Notice of Acceptance from the US Patent Office for the first of several patent applications covering critical aspects of TSO₃^'s technology.
• Engaged Liolios Group to lead new strategic investor relations program.

"During the third quarter we continued to leverage our relationship with Getinge Infection Control in the USA, our non-exclusive partner and the results are now showing in our financials," said TSO₃ president and CEO, Mr. R.M. (Ric) Rumble. "Seven STERIZONE^® VP4 Sterilizers were shipped in the U.S. during the third quarter, two of which have been installed. Getinge's work continues to build an ever increasing set of targeted opportunities, with a comprehensive pipeline set for 2016. We continue to see their commitment towards expanding the sales pipeline in the U.S. with the recruitment of dedicated sales specialists in North America specifically for the STERIZONE^®  VP4 Sterilizer.

"In Canada, we recently announced the clearance from Health Canada, the Canadian equivalent of the Unites States FDA, to sell the STERIZONE^® VP4 Sterilizer with extended claims in the Canadian marketplace. These new claims are an industry first as they relate to the sterilization of multi-channeled flexible endoscopes and further extend the claims superiority of our sterilizer in the industry. We expect to initiate retrofitting of sterilizers in Canada shortly to allow these cleared claims. Potential customers also visited TSO₃'s Quebec facility as well as active hospital installations to learn more about the Canadian in-use experience with our sterilizer.

"In summary, TSO₃ has been immersed with our STERIZONE^®  VP4 Sterilizer deployment in the U.S. and reaching new milestones in the Canadian marketplace with our expanded claims during the quarter. There is clear evidence of commercial progress. Our near term goals will focus on supporting the commercial roll-out while obtaining a consistent set of ground breaking extended claims across North America."

SUMMARY OF CONSOLIDATED RESULTS
Periods ended September 30 (Unaudited, IFRS Basis)
		THIRD QUARTER		NINE MONTHS
		2015 $	2014 $	2015 $	2014 $
Sales		1,209,901	98,545	1,436,481	312,481
Expenses
	Supply Chain	879,886	246,283	1,409,362	707,246
	Marketing, Sale and Service	254,841	61,853	635,655	234,292
	Research and Development	713,663	667,219	1,905,461	1,789,756
	Administrative	1,079,549	570,656	2,817,869	1,968,929
	Financial Income	(33,974)	(23,443)	(94,836)	(91,350)
	Financial Costs	(1,763)	2,822	11,453	15,974
Total Expenses		2,892,202	1,525,390	6,684,964	4,624,847
Net Loss before Income Taxes		(1,682,301)	(1,426,845)	(5,248,483)	(4,312,366)
IncomeTaxes		-	-	-	-
Net Loss and Comprehensive Loss attributable to Shareholders		(1,682,301)	(1,426,845)	(5,248,483)	(4,312,366)
Basic and Diluted Net Loss per Share		(0.02)	(0.02)	(0.06)	(0.06)
Weighted Average Number of Outstanding Shares		82,916,519	73,105,716	81,406,817	73,036,227

Q3 2015 Conference Call

TSO₃ President and CEO Mr. Ric Rumble and Interim CFO Mrs. Elena Simard-Veilleux will host the conference call, followed by a question and answer period.

Date:	November 4, 2015
Time:	10:30 a.m. Eastern time (7:30 a.m. Pacific time)
Toll-free dial-in number:	1-888-231-8191
International dial-in number:	1-514-807-9895 (Montreal); 1-647-427-7450 (Toronto)
Conference ID:	1062091

Analysts and institutional investors are invited to participate to the call. Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

Other interested parties may listen to the live Webcast of the Conference Call broadcasted live and available for replay at:

http://event.on24.com/r.htm?e=1062091&s=1&k=1928F249DE2CA2F29C0A5B94AC4BE718

and via the investor relations section of the company's website at www.tso3.com.

Third Quarter Disclosure

The 2015 Third Quarter Report is available on TSO₃'s website at the following address http://www.tso3.com/en/investors/financial_reporting/quarterly_reports/  and full Q3 disclosure will shortly be available on SEDAR (www.sedar.com).

About the STERIZONE^® VP4 low temperature sterilizer

The STERIZONE^® VP4 Sterilizer developed by TSO₃ is a dual sterilant, low temperature sterilization system that utilizes vaporized hydrogen peroxide (H₂O₂) and ozone. Its single cycle can sterilize a large number and wide range of compatible devices, thereby allowing for a cost effective and error-free sterilization process. TSO₃'s unique Dynamic Sterilant Delivery System™ automatically adjusts the quantity of injected sterilant based on the load composition, weight and temperature. With its large 75 lb load capacity and a short cycle time, the STERIZONE^® VP4 Sterilizer can enhance throughput and lower sterilization cost. The STERIZONE^® VP4 Sterilizer was cleared for commercialization in the United States in December 2014.

More information about the STERIZONE^®  VP4 Sterilizer is available through TSO₃'s website, under the Products section: http://www.tso3.com/en/products/sterizone-vp4/

About TSO₃

Founded in 1998, TSO₃'s activities encompass the sale, production, maintenance, research, development and licensing of sterilization processes, related consumable supplies and accessories for heat-sensitive medical devices. The Company designs products for sterile processing areas in the hospital environment that offer an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals. It also offers services related to the maintenance of sterilization equipment and compatibility testing of medical devices with such processes.

For more information about TSO₃, visit the Company's Web site at www.tso3.com or contact Liolios Group at [phone] or email [email protected].

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.

SOURCE TSO3 Inc.

Company Contact: R.M. (Ric) Rumble, President and CEO, Tel: [phone], Email: [email protected]; Investor Relations: Liolios Group, Inc., Chris Tyson, Tel: [phone], [email protected]