TSO3 closes Cdn$23 000 000 bought deal



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    Ticker: TSX - TOS
    Shares Outstanding: 46,232,102

    QUEBEC CITY, March 8 /CNW Telbec/ - TSO3 Inc. ("TSO3") (TSX: TOS)
announces today that it has successfully completed its previously announced
public offering of 8,000,000 units (the "Units") to a syndicate of
underwriters led by Canaccord Adams at a price of Cdn$2.50 per Unit (the
"Issue Price"). The underwriters have also exercised in full their
over-allotment option and purchased an additional 1,200,000 units at the issue
price, for total gross proceeds of Cdn$ 23 million.
    Each Unit consists of one common share and one-half of one common share
purchase warrant. Each whole warrant is exercisable at a price of Cdn$3.00 for
a period of two years from the closing date.
    The Company intends to use the proceeds of the offering primilary for
commercialization, research and development and for working capital purposes.
    "We are pleased with this show of confidence in us by the financial
markets and can now focus our efforts towards the successful commercialization
of the 125L Ozone Sterilizer," said Jocelyn Vézina, Chief Executive Officer of
TSO3 Inc.
    "Our product is clearly being accepted by the market, and this financing
allows us to reinforce the company's foundation and also double our sales
force by the end of the year. Furthermore, we are giving ourselves the means
not only to accelerate the development of new products, but of new markets as
well," he concluded.
    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.

    About TSO3

    TSO3 is located in Québec City, Québec, Canada, and was founded in 1998.
The Company's mission is to develop and market innovative and comprehensive
sterilization solutions. TSO3 has perfected an innovative sterilization
process using ozone as the sterilizing agent. The first product based on this
technological platform is the 125L Ozone Sterilizer, which is intended for
hospital sterilization units. The 125L - named after its
125-litre/4.3-cubic-foot capacity - was designed to sterilize heat-sensitive
surgical and diagnostic devices which are expensive and in high demand from
the surgical suite. The ozone sterilization process is a safe, efficacious,
fast and cost-effective response to evolving sterilization needs.
    The 125L Ozone Sterilizer by TSO3 has been cleared for commercialization
by Health Canada and by the U.S. Food and Drug Administration (FDA). TSO3
completed the sale of its first sterilizer in Q4 2005.
    TSO3 currently has more than 50 employees, 23 of whom work in the sales
and marketing team.
    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:

For further information: Marc Boisjoli, CFO, (418) 651-0003, Ext. 228,
mboisjoli@tso3.com; Mathieu Claise, Interim Director, Corporate Communications
and Investor Relations, (418) 651-0003, Ext. 237, ir@tso3.com; Source: TSO3
Inc.


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