TSO3 to Expand Manufacturing Workforce to Meet Demand for STERIZONE® VP4 Sterilizer

Company Notifies Suppliers and Accelerates Workforce Recruitment in Canada and the United States

QUÉBEC CITY, Dec. 21, 2015 /CNW Telbec/ - TSO3 Inc. (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, has accelerated its plans to expand its manufacturing and assembly workforce for its FDA-cleared STERIZONE® VP4 Sterilizer.   

The expansion is in response to recent orders for shipments to the U.S. placed by the company's new exclusive global distribution partner and world leader in infection control solutions, Getinge Infection Control. The orders would fulfill the contractual minimum established in the company's distribution agreement with Getinge signed in November.

The exclusive distribution partnership was formed after the company and Getinge collaborated for several months to introduce the STERIZONE® VP4 Sterilizer in the U.S. The agreement provided for a US$7.5 million upfront license fee paid to TSO3, as well as performance-based minimum order quantities in each year of the agreement. The minimum annual commitments are scheduled to reach in excess of 10% of the estimated annual global replacement market within the first five years. The company estimates the annual replacement market worldwide totals more than 3,000 units or $450 million annually.

The initial orders received under the new agreement are scheduled for delivery in the first quarter of 2016 and beyond. The level of orders requires an immediate expansion of the company's assembly, quality control and associated workforces at both its Canadian and U.S. facilities.

"2016 is already off to a tremendous start, with these substantial orders received for the U.S. market," said R.M. (Ric) Rumble, TSO3's president and CEO. "In line with our own expansion of internal resources, we have notified our supplier network of our heightened demand requirements for 2016.  Our primary objective is to meet current and future demand, while ensuring adherence to our high standards for both quality and performance."

About the STERIZONE® VP4 low temperature sterilizer

The STERIZONE® VP4 Sterilizer is a low-temperature (41°C or 105.8°F) sterilization system that utilizes the dual-sterilants of vaporized hydrogen peroxide (H2O2) and ozone (O3) to achieve terminal sterilization of heat and moisture sensitive medical devices. Its single pre-programmed cycle can sterilize a large number and wide range of compatible devices, creating a cost-effective, error-free sterilization process. The device's unique Dynamic Sterilant Delivery System™ automatically adjusts the quantity of injected sterilant based on the load composition, weight and temperature. This capability removes the guesswork and potential for human error, as there is no need to sort instruments and choose the appropriate cycles as with other machines.

The STERIZONE® VP4 Sterilizer is the only low temperature sterilizer that can process a mixed load consisting of general instruments, single channel flexible endoscopes, and single or double channel rigid endoscopes in the same cycle with load weights of up to 75 lb. This ability to run mixed loads significantly reduces labor costs by minimizing the amount of instrument sorting required, while maximizing the device turns (more productivity from increased throughput capacity). Other H2O2 sterilizers are limited to load weights of up to only 25 lb. and require dedicated fixed cycles for different types of instruments (reducing overall throughput).

The STERIZONE® VP4 Sterilizer is cleared for commercialization in the United States and in Canada..

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 (949) 574-3860 or email TOS@liolios.com or Renmark Financial Communications at (416) 644-2020 or email bmire@renmarkfinancial.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.

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 these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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



For further information: Company Contact: TSO, Inc., R.M. (Ric) Rumble, President and CEO, Tel: 418 651-0003, Email: info@tso3.com; Investor Relations: Liolios Group, Inc., Chris Tyson, Tel: 949 574-3860, TOS@liolios.com; Renmark Financial Communications Inc., Barry Mire, Tel: 416 644-2020 or 514 939-3989, bmire@renmakfinancial.com


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