Mr. R.M. Rumble reports

TSO3 CREATES U.S. ENTITY - PLANS TO OPEN U.S. FACILITY

TSO3 Inc. has formed a wholly owned subsidiary, TSO3 Corp., structured under the laws of the State of Delaware, and located in the state of South Carolina. The new entity is being created to meet the demands of United States customers for product, service and education.

"During the second quarter the company focused a great deal of its energies in developing a formal commercialization process for the Sterizone sterilization system," stated R.M. Rumble, president and chief executive officer.

"Alone and together with our sales and service partner Getinge Infection Control, the company has made great strides, which we believe will result in securing contract positions with the largest and leading group purchasing organizations (GPOs) and integrated delivery networks (IDNs). In addition, TSO3 is ushering scores of quotes through their individual processes, many of which the company expects to successfully close. As a result of these efforts, it became clear that it was time to execute our plans to open a U.S. location focused on the education and ongoing service requirements of the U.S. customers," explained Mr. Rumble.

"While the foundation and technical expertise of the company is and will remain in Quebec City, establishing a presence in the U.S., which represents 40 per cent of the worldwide market, will allow us to more effectively reach out to and service this high-opportunity market," concluded Mr. Rumble.

The company has leased approximately 6,000 square feet of space in Myrtle Beach, S.C. The location will house U.S. customer service, clinical education and also will act as a U.S. warehouse and service depot. The new location is expected to open in August of this year in time to meet U.S. customer requirements.

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