Corporate Presentation

Creating the Improved Standard

in Healthcare Sterile Reprocessing

Year 2011

Forward-looking Information

The speeches made during this meeting may include forward-looking information with

respect to the Company, including its business operations, strategy, financial

performance and condition. Although management of the Corporation believes that

the conclusions, estimates or projections reflected in such forward-looking

information are reasonable and represent the Company’s conclusions, estimates or

projections at this time, such information involves unknown risks and uncertainties

which may cause the Company’s actual results to differ materially from the

Company’s conclusions, estimates or projections expressed or implied by such

forward-looking information. The listener is cautioned not to place undue reliance on

these forward-looking statements. We do not undertake to update any forward-

looking statement that is contained in the MD&A or mentioned during this meeting.

Company Overview

• Founded 1998

• Designed and manufactured a low temperature

sterilizer for medical devices

• IPO 2001

• TSX: TOS

• 59M shares outstanding

Key Events Under Initial Management

• TSO3 total 38 placements of its first generation product in North America

• Renewed management team

2008

• Received FDA Clearance for additional claims to include rigid lumened instruments (125L)

2006

• Received FDA Clearance for first generation sterilizer (125L) 2003

• Received HC Authorization for first generation sterilizer (125L) 2002

Renewed Leadership

• R.M. (Ric) Rumble, CEO – Joined October 2008 – More than 25 years experience within the North American and Global

medical device industry, capital and consumables – Business Unit Manager, Sterility Assurance – 3M – President - MediVators Inc – VP & GM – Global Healthcare Sterilization, STERIS

• Benoît Deschamps, VP Finance – Joined June 2011 – 25 years+ in senior finance roles – Accomplishments focused on investment and financing within large companies

and entrepreneurial organizations – Background in the acquisitions, private and public corporate debt investments

and structured combined debt-and-equity transactions – Holds a M.B.A. in Finance and a Ph.D. in Business Administration (Finance)

• Simon Robitaille, Consultant for Ops/R&D (former CSO & Co-Founder)

Recent Key Events

• Receives notification of conformity to the CE Mark enabling sales of new generation sterilizer in Europe

• Ships first newly branded 3M™ Optreoz™ 125-Z Sterilizer to 3M for training purposes

2010

• Adopts new and aggressive strategic plan in order to increase utility of sterilizer

• Freezes design of new generation (STERIZONE® 125L+) sterilizer offering increased compatibility and speed

• Signs global channel partner agreement with 3M™ for new generation sterilizer (TSO3 STERIZONE® 125L+)

• Receives HC Authorization for new generation sterilizer (TSO3 STERIZONE® 125L+)

2009

2011

• Appoints new CFO (June)

• Expands agreement with 3M™ to include new OR sterilizer under development

• Ships first 3M™ Optreoz™ 125-Z Sterilizer to customer locations (June)

• Ships additional 3M™ Optreoz™ 125-Z Sterilizers as part of the upgrade program offered to original 125L Ozone Sterilizer customers

Our Vision…

To Create the Improved

Standard in Healthcare

Sterile Reprocessing

In business to win

The Market

The Product/

Solution

The Channel

Why low

temperature

sterilization?

Market Drivers

10

Growing Population

2010 2020

17% increase

7.9% increase

Annals of Surgery. 2003 August; 238(2): 170-177.

More people = more surgeries

Aging Population

0

10

20

30

40

50

60

2001 2005 2010 2015 2020

% I

nc

rea

se

65 yrs +

45 to 64

15 to 44

- 15 yrs

53% increase

Annals of Surgery. 2003 August; 238(2): 170-177.

65 yrs+ is the fastest growing segment

Impact of Age on Demand for Surgery

45 55 65 75

Number of procedures (average)

88% of ophthalmology surgeries

70% of cardiothoracic surgeries

65% of urology surgeries

60% of general surgeries

As we age, we require more OR time

Annals of Surgery. 2003 August; 238(2): 170-177.

Age

Advancement in Medical Techniques

14

From Traditional Open Surgery To Minimally Invasive Surgery (MIS)

MIS Procedures

15

MIS

Cardiology

Gastrointestinal

Urology

Gynaecology

Pulmonary medicine

Neurosurgery

30 million surgeries in US/year

The National Institute of Health (NIH).

Orthopaedic

Increasingly used and finding new applications everyday

MIS Devices are Complex & Delicate

16

$50k Colonoscope

MIS Devices

require low

temperature

sterilization

Low Temperature Sterilization Trend What customers are saying…

2010 3M™ Commissoned Market Research. Courtesy of 3M™.

Courtesy of 3M™ - 2010 Survey.

Sterile Reprocessing Areas in Hospitals

19

Operating Room Department (OR)

OR OR OR OR

OR OR OR OR

Liquid

Gas

Central Sterilization (CS)

1 CS

Liquid

3 GI

Sterile Storage for OR

Low Temperature Sterilization

Steam Sterilization

Gastrointestinal Department (GI)

1 CS 2 OR

Customers want

THROUGHPUT

TSO3 sterilizer conjoint study July 2009 - Allegheny Marketing Group.

21

Available Sterilization Solutions Ethylene Oxyde

(EtO) Hydrogen Peroxide

(H2O2)

Liquid

Peracetic Acid (PAA)

Hyg. Per. + Ozone (H2O2/O3)

Efficacious Fast Specific use in OR Fast

High material

compatibility

Limited in

efficacy

Liquid = Not terminal

sterilization Efficacious

Long cycles

• 16 to 30 hrs for toxicity removal

Limited in

compatibility

Replacement offers

reduced claims

High material

compatibility

Dangerous

• Carcinogenic, mutagenic, neurotoxic

Load restrictive Only addresses OR

Segment

High loading capacity

Regulated Pollutant Expensive 23,000 units in N/A

Being pulled out by FDA

Lowest cost /instrument sterilized

Throughput Throughput Throughput Throughput

We sterilize

what others can’t…

L o n g e r

bigger more complex

We sterilize more

in each load…

Superior Loading Capacity

Competitive Maximum Load

Example of TSO3 Load Example of TSO3 Load

We sterilize

fast 46 minutes

Our Technology Enables Throughput

27

By combining:

• Efficacy & Compatibility

• High loading capacity

• Speed

Customer Feedback

2010 3M™ Commissoned Market Research. Courtesy of 3M™.

2 weeks after install of the 3M™ Optreoz™ 125-Z

• “Improving our standard of care” by…

• “Terminally sterilizing devices previously reprocessed using a liquid

chemical sterilization method”.

• “Virtually eliminated the use of the liquid process, as flexible scopes are

now terminally sterilized, along with additional devices”

• “Already running up to eight loads a day”

• “Obtaining significantly shorter cycle times”

• “Already experiencing improved throughput”

• “Very happy with this acquisition”

Market Overview / Low

Temperature Sterilization

• Capital equipment business – Low temperature gas sterilizers in

hospitals:

• ~26,000 installed worldwide

• Life span ~ 12 years

• Replacement business: 2,000 units/year

US

Canada

Europe

ROW• Consummables business – Estimated recurring revenues on low

temperature gas sterilizers:

• $ 250M /year

Worldwide Installed Base

A Winning Channel Partner

• Innovative

• Customer respected

• Leading competitor in space

• Globally established

3M™ Global Reach

32

2011 Milestones

• 3M Optreoz™ 125-Z – Scale assembly operations Q1/Q2

– Regulatory Affairs • Health Canada Authorization ACHIEVED

• CE Mark for European Union ACHIEVED

• American FDA clearance Filed June 30, 2011 (follow-up filing in 2012)

– Ship units / CANADA, EUROPE INITIATED Q2 End

LATIN AMERICA, PACIFIC ASIA

• Next product : OR – Finalize prototype Q4

3M™ Optreoz™ Roll-Out

3M™ 2011 Launch Plan

• Phased global roll-out based on regulatory clearances

– CEE / ME / WE Europe: CE Mark registration and translation complete

– Canada: June

• APAC: Beginning Q3 in Wave A

• LA: Beginning Q3 in Wave A

Wave A 2011 15 countries

Wave B 2012 22 additional countries

Wave C 2013 3 major additional countries

Slide content courtesy of 3M™.

3M™ Key Messages on Optreoz™

Sterilizer

“Ingenious solution to low temperature

sterilization challenges” – Can sterilize rigid multi-channel endoscopes

– Has better lumen penetration and can process multiple flexible

endoscopes in a single load

– Has a larger capacity and provides better daily throughput compared

to any other low temperature sterilizer

– Has a lower cost to run per volume processed

– Incorporates the only dual-sterilant technology available and is

designed to better meet today’s sterile processing challenges

– Three cycles provide greater flexibility in processing

Slide content courtesy of 3M™.

3M™ Optreoz™ Communications Plan

Slide content courtesy of 3M™.

3M™ Optreoz™ Communications Plan

3M™ Optreoz™ Compatibility App provides device compatibility

endorsements for Optreoz™ process, designates correct cycle and

allows customers to request further data.

Slide content courtesy of 3M™.

Paving New Runway

Opportunity

Medical Sterile Reprocessing

3M™ to Commercialize Next Product

(OR)

• Location : OR Sub-Sterile Area • Inventory limitations, flexibility in schedule, shorter turn-around

time

• Potential placements (NA): 7,500 units

50% of customers surveyed want the product Estimated design freeze : December 2011

New Positioning

Growth Strategy

• Regulatory activities

• Support 3M™ in commercial execution

• Increase portfolio

– New developments

– Acquisitions /Joint ventures

• Maintain focus in current space

– Medical sterile reprocessing

Financial Situation – As of December 31

Y11

(000’s)

Sales & License Revenues 3,355

Cash, Cash Equivalents & Temporary Investments 11,384

Inventories 1,120

Total Assets 18,920

Shareholder’s Equity 15,694

Monthly Burn Rate *746

Shares Outstanding 58,786

Options Outstanding 3,749

*After adjustment to eliminate effect of past-due receivables

44

Strong global channel partner

Superior technology meets customer needs

Large and growing market

Pursuing new applications and opportunities

Financially sound

Investment Highlights

© TSO3 Inc., 2011.

All rights reserved. No part of this publication may be reproduced

or translated in any form or by any means,

without the prior written permission of TSO3 Inc.

- OZO-TEST® - STERIZONE® are Reg. U.S. Pat. & Tm. Off.

TSO3 STERIZONE® Sterilizer U.S. Pat. No. 7,128,872 / 7,582,257 / 7,588,720 / 7,608,217

TSO3 STERIZONE® Chemical Indicator U.S. Pat. No. 6,589,479

Licensed under U.S. Pat. No. 6,387,241 by Lynntech.

Other patents pending