TSO3 settles dispute with 3M Company

Stock symbol:TSX: TOS
Outstanding shares: 72,888,182

QUEBEC CITY, July 2, 2013 /CNW Telbec/ - TSO₃ Inc. ("TSO₃") an innovator in low-temperature sterilization technology for medical devices in healthcare settings, today announced that the Company has settled the ongoing dispute with the 3M Company ("3M") through the mediation process.

On August 2, 2012, TSO₃ announced that the Company had terminated its Agreement with its former channel partner 3M, for the exclusive supply, distribution, license and service of the new STERIZONE^® 125L+ Sterilizer branded as the 3M™ Optreoz™ 125-Z. The Agreement, dated December 2009 and amended in May 2011, provided conditions for either party to terminate the agreement. TSO₃ exercised this right and provided a letter of termination to 3M on June 15, 2012. 3M had disputed TSO₃'s right to terminate the agreement.

In respect of the terms outlined in the settlement, limited details are being released. An amount of $2 million inclusive of the repurchase of inventory as well as settlement fees will be paid by TSO₃ to 3M.

"We are satisfied with the terms of the settlement and that the dispute has been settled", stated R.M. (Ric) Rumble, CEO of TSO₃.

Current Installed Base

The current installed base of TSO₃ STERIZONE^® 125L+ Sterilizers (3M™ Optreoz™ 125-Z) will be supported by TSO₃ until a new agreement is in place with a distribution partner. "We have maintained a close connection with the Canadian base of users and we have everything in place to maintain existing customers and provide additional support", concluded R.M. (Ric) Rumble.

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. 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.

SOURCE: TSO3 Inc.

Caroline Côté
Vice President - Investor and Business Relations
418 651-0003, Ext. 237 [email protected]