Sterilizers & Autoclaves News

Severe Acute Respiratory Syndrome (SARS) is an atypical form of pneumonia that first appeared in November 2002 in Guangdong Province, China.

A laboratory technician working for China’s national disease control and prevention center has been blamed for the recent outbreak of severe acute respiratory syndrome (SARS) earlier this year.

Chinese Vice-Premier Wu Yi addressing a meeting on the issue said China would step up its efforts to formulate laws and regulations on laboratory bio-safety, and improve work conditions for researchers to protect their health and safety and prevent the spread of disease.

The Vice-Premier went on to say that the accident, not only impaired people’s health, but also had caused a detrimental effect on the economy.

Officials after a through investigation said poor lab safety management and irregular operations by professionals resulted in the pollution of a laboratory. The SARS virus infected few of the laboratory staff members; this constitutes a major accident due to negligence and poor safety methods implemented in the laboratory.

The Diarrhea Virus Laboratory under the Institute of Virus Diseases of the center was found to have conducted SARS virus research. It implemented untested methods to kill the virus in an ordinary lab, according to the report.

According to the report on investigation, the lab failed to report to higher authorities the fact when unusual health conditions were detected among some of their staff members.

The Ministry of Health has accepted the resignation of the director and a vice-director of China’s National Disease control and Prevention Center.

After the People’s Republic of China suppressed all news of the outbreak both internally and abroad, it spread rapidly, reaching neighboring Hong Kong and Vietnam in late February 2003, and then to other countries via international travel of infected persons.

For years Kingsbury Hospital’s engineering manager Derek Niehaus watched helplessly as millions of litres of clean water from the hospital’s sterilizing machines disappeared down the drain. He was desperate to save this precious water.

Fortunately, a change in hospital management took place. This opportunity was grabbed by the hospital’s engineering manager put his water saving plans into practice. The result is that in the past six months he has saved 1.6 million litres of the nation’s water. And in economy terms, he saved about $5,500 on hospital water bills.

Derek Niehaus explained that a significant quantity of water is being wasted and no measures were deployed to prevent it. I’ve been trying for years to start a water-recycling plant, but these things depend on the hospital management.

The new manager who joined last year was able to understand the benefits in water saving, or water recycling. It makes no sense to pour clean water down the drain.

The hospital autoclaves, where the surgical instruments are sterilized, use about 70 000 litres of water a week. It is this water that Niehaus is recycling by directing it to flush lavatories and water the hospital garden.

People think the water from the autoclaves is dirty, to be true it is not so. Laboratory tests proved that is safe enough, even for human consumption. The water does not come into contact with the instruments at all. They are in a separate chamber. The water is heated to about 140оC and the steam sterilizes the instruments. One autoclave uses between 300 and 400 litre a cycle.

Niehaus plans a new to install an operating solar water heating system. He questions with all this sunshine free of cost, why use electricity generated by coal pays hundreds of dollars, when an alternative is available for free?

Provalis plc. is a diversified healthcare group with two main operating businesses.

Medical Diagnostics – Company develops and sells to world markets
medical diagnostic products for chronic disease management. The business’ principal products are Glycosal(R) and Osteosal(R)in the areas of diabetes and osteoporosis respectively.

Pharmaceuticals – Provalis plc. sells and markets its own, and third party, branded, prescription medicines in the UK and Ireland to GPs and hospitals through its own regionally managed sales force. The business’ principal product is Diclomax(R), a medicine for use in the treatment of musculo-skeletal disorders, and it also sells products in the areas of gastroenterology, osteoporosis, migraine and dermatology.

Provalis plc. U.K. based, The Medical Diagnostics and Pharmaceuticals Group, announces on, July 1, 2004, that it has signed an option agreement with Chiron Vaccines.

Chiron Vaccines, a business unit of Chiron Corporation, is the world’s fifth-largest vaccines business and the second-largest provider of influenza vaccines

Under the terms of the agreement:

Chiron Vaccines is granted an initial 12 month, exclusive option (extendable by a further 12 months on payment of a fee) to evaluate Provalis’ protein based vaccine candidates to prevent Group B Streptococcus infection; Chiron Vaccines has paid an initial option fee to Provalis and will pay all costs connected with the patents underpinning these vaccine candidates; Chiron Vaccines has the right to enter into an exclusive licence for, or to acquire, these vaccine candidates, in both cases on pre-determined terms (which include the quantum of staged milestone payments and royalty rates for the licence).

All the factors that could affect the Company’s future results are more fully described, as defined in the US Private Securities Litigation Reform Act of 1995, in its filings with the US Securities and Exchange Commission, in particular the latest 20-F filing, copies of which are available from the Company Secretary at the Company’s registered address.

Provalis’ under took Vaccine Development programme from 1998 to 2002. Provalis identified a number of recombinant protein antigens as candidates for common infections. However, given the significant costs required to fund the development of lead candidates through clinical trials, Provalis concluded that further development was beyond its resources and so sought partners for the development programmes.

Group B Streptococcus (GBS) is a species of bacteria causing severe infection including meningitis, pneumonia and bacteraemia in infants and the elderly. Provalis’ proprietary recombinant protein based antigens allow the development of a vaccine to prevent or treat cases of GBS infection.

Technology has laid its hands on every field were humans are involved. Form advanced planes to medical equipment to house items. Cooking, a major requirement for the mere survival has undergone evolution along with all the other things. Pressure cookers had made their way in the process. The pressure cooker may well be the savior of home cooking in a society that’s always pressed for time. In fact, the PC is to whole foods what the microwave oven is to convenience foods. Better technology has eliminated the safety risks that once unnerved wary cooks, leaving only the benefits—fragrant; succulent stews in half an hour or so.

The basic principle behind pressure cookers, is applying steam heat to food in an airtight environment, which builds up pressure caused due to the trapped steam inside the pot allows temperatures to rise above those attainable in non-pressurized vessels. As a result, when compared with conventional cookery, most foods cook 70% faster with 50% less fuel. It takes about five to eight minutes, for the required pressure to be achieved. When compared with the microwave ovens this time is considerably less, which favors pressure cookers over microwaves. Only fish is equally fast in both systems.

Flavor is another selling point. Because all the juices and aromatic oils are trapped inside the pot, meats emerge tender and succulent, stews are thick and rich, soups and sauces taste as if they have been simmering slowly for hours. The short cooking time combined with the airtight cooking environment also results in maximum retention of nutrients.

Cooking Process and Precautions: Pack the cooker with the prepared ingredients and the recommended amount of liquid, and make sure it is not more than two-thirds of its capacity. Close the cooker, and place it on high heat. Align the steam release to trap the steam properly. When full pressure is achieved reduce heat to just maintain pressure and start the timer. Cooking times may vary slightly, depending on many factors: the size and age of the items.

When recommended cooking time is over, remove the unit from the heat, and depressurize it according to the manufacturer’s instructions or recipe directions. It can be done by using the quick pressure-release valve, running cold water over the cooker or letting the pot stand off the heat until pressure reduces naturally.

In general, the pressure-release valve is recommended when timing is critical, as with vegetables, which overcook quickly. If you need a quick loss of pressure with these foods, let the pot stand off the heat for a few minutes first, then very gradually release the steam with the valve.

Never try to open or force the handles apart, of a pressure cooker while there is pressure inside. The lid lock in the preferred models prevents opening until all pressure is released. It’s a good idea to gently shake the pot to further ensure that all pockets of pressure are gone. Open the lid away from your face, in order to direct any remaining steam away from you. Most manufacturers advise not to pressure-cook reactive foods—that is, those that sputter, splash or froth excessively.

ADAPTING RECIPES: Pressure-cooking requires liquid to produce the necessary steam; never use less liquid than instructed, even if you reduce the amount of food. For steaming vegetables or pudding, you need a minimum of one-half cup water. Foods that absorb liquid, like beans, grains and dried fruit, require adequate amounts to compensate.

TIMING: Careful timing is the key to this technique; begin the count as soon as pressure is reached. When the suggested time is “zero,” remove the cooker from the stove as soon as full pressure is achieved, and quickly reduce the pressure. In contrast to the microwave, the quantity of the food in the PC doesn’t alter the cooking time once it’s up to steam. If you intend to let the cooker cool naturally, rather than reducing pressure quickly, factor this into the timing. And don’t forget: Once pressure is released, the cooker should be opened to prevent further cooking.

VEGETABLE COOKERY: Although many vegetables cook quickly with other methods they emerge from the PC even faster and with more of their color and nutrients intact. The best method is pressure steaming: Just place the vegetables in the steaming basket, and set them over plain water or seasoned broth.

DRIED BEANS: Healthful, delicious beans require to be soaked all night and cooked all afternoon. With a pressure cooker, beans may or may not be soaked. Un-soaked, they need longer cooking and more water, but they also froth less and hold their shape better. Because legumes expand during cooking, never fill the cooker more than half full.

GRAINS: Since grains double the total volume as they cook, do not fill the pot more than halfway. Grains should be cooked directly in liquid, not in the steam basket. Cooking small seeds like millet, kasha, and cracked wheat, which may block the steam vent is not recommended.

BARLEY, WILD RICE, TRITICALE, OATS, AND WHOLE WHEAT AND RYE BERRIES: Rinse and drain the grain, and combine it with twice its volume of water. If desired, add one-tablespoon oil or butter per cup of grain to minimize foaming.

MEAT AND POULTRY: Since the PC must have liquid to function; it’s particularly suited to stews and pot roasts. Less expensive cuts tenderize beautifully in the moist heat. Sear the meat in a small amount of oil in the open cooker, if desired. The more bone and the more tender the cut, the less cooking is needed.

COMBINATIONS: To pressure-cook several different foods with varying cooking times begin with the longer-cooking item, reduce the pressure when partially cooked, add additional foods at appropriate times, and bring pressure back up again. Use the chart provided for additional preparation and cooking instructions.

Shopping for a Pressure Cooker:

The important features that are to be considered while selecting a pressure cooker are time and safety. It must have multiple safety systems, including at least two pressure-release devices to guard against explosion. A safety lock in the lid that makes it impossible to open the pot while pressure exists inside. A quick pressure-release valve; it allows you to reduce pressure manually, rather than leaving the pot to sit until the pressure declines.

Latest models have a built-in, almost silent pressure indicator with only one or two automatic settings, so the cookers are much less complicated to operate. The single-level pressure cooker, which is the simplest type to monitor, is perfectly adequate for home use. Today, many are stainless steel rather than aluminum, which is preferable for its weight. It has a heavy aluminum core or an aluminum-clad base for even heat and thermal retention.

Over several designs, the traditional-looking pot is probably the best choice. Some have complex cover systems reminiscent of medical sterilizers are intimidating. Those that force you to slide the lid into the pot are awkward and often messy to use. Heat-resistant handles with two grips, or a single grip of, non-slip material-are recommended.

All models include trivets for steaming vegetables, and several come with steaming baskets as well. Pressure cookers range in capacity from two to 20 quarts. A six-quart pot is adequate for most households, keeping in mind that, the pot can be only two-thirds full. PC’s require liquid ranging from two cups to a quarter cup, to achieve proper pressure. If you often cook small amounts of food, a model that functions with less liquid will be more useful.

Though pressure cooker has advantages of time and cost effective, it has a certain amount of risk of exploding. Proper safety precautions and better understanding and implementation of user manuals make the pressure cooker user-friendly and a daily use culinary item.

Health Care Without Harm and the Philippine Department of Health cooperated on a vaccination program. In this combined venture millions of children were protected from measles. Throughout the program not even a single syringes was incinerated.

Health care professionals vaccinated 18 million children in February. This vaccination program generated an estimated 19.5-million auto-disable syringes. This vast medical-waste was treated in autoclaves or microwave facilities and then buried in waste pits or encased in concrete vaults. Needle destruction technologies also were used in some areas.

The Philippine Health Secretary Manuel Dayrit said that The Philippine Measles Campaign experience is the largest mass immunization program that handled its medical waste without any incineration or open burning.

Philippines was the first country to ban the burning of all waste, including medical waste, for health and environmental reasons. The ban came into effect in 1999.

Health Care Without Harm represents medical professionals and institutions and advocates environmental sustainability. It released a report on the program on its Web site, www.noharm.org.

Goro, nickel-cobalt project in New Caledonia, has proceeded in two phases, began following the decision made in December 2002 to suspend the project. Inco Limited, which owned approximately 85 per cent of the project, announced today the key preliminary findings reached to date as part of Phase 2 of the comprehensive review.

Inco’s Chairman and CEO Scott Hand stated that, Phase 2 review has progressed well, and expressed thanks to the project review teams for their skills and the experience. He added that, the company has made good progress toward confirming an operation that will add value to itself, will be efficient and low-cost and meet relevant environmental health and safety standards and will represent a significant contributor to New Caledonia.

He also added that, Goro nickel-cobalt project, one of the world’s best undeveloped ore-bodies, and a very key part of the company’s growth strategy in nickel and has the clear capabilities to be expanded significantly beyond its initial nameplate capacity in the future.

The Phase 2 review is currently, expected to be completed in the late summer of 2004. This Phase has implicated a structured process to further develop opportunities to reduce the project capital cost estimate that had been identified in the first phase of the project review completed in July 2003. Phase 2 includes the development of an updated project cost control estimate, an updated project schedule and an optimized and clearly defined scope and execution plan. It also has a value improvement program and continuation of appropriate engineering work with the assistance of the joint venture of the SNC-Lavalin and Foster Wheeler organizations and other firms retained to assist in this review.

The impact of this review on the project’s preliminary capital cost estimate, taking into account the expected non-cash charge discussed below, has been reduced to approximately $1.85 billion (U.S.), within a plus 20 percent to minus 5 percent reliability range and is within approximately three per cent of the $1.8 billion (U.S.) capital cost estimate objective for the project that Inco had established in August 2003. This includes a favorable impact of approximately $500 million (U.S.) in reductions in the capital cost estimate, offset by approximately $250 million (U.S.), relating principally to unfavorable currency adjustments due to changes in exchange rates associated with certain expenditures which would be expected to be incurred in foreign exchange and cost escalation in construction materials.

Mr. Hand added that the preliminary cost estimate developed shows signs to continue to move in the right direction to achieve our goal of a viable project. Due to the progress made to date, the project’s overall operability has been enhanced and increased its production capacity. At a capital cost of U.S. $1.85 billion and using long-term prices for nickel of U.S. $3 a pound and U.S. $7 a pound for cobalt, the project returns would meet our long-term after-tax weighted average cost of capital of 9 to 10 percent. Mr. Hand notified that, while, a number of key milestones are to be accomplished, and remained optimistic that the company would reach a decision to proceed later this year.

The Phase 2 review has also reduced Goro’s planned process plant footprint by approximately 50 percent from phase 1. This development will enhance the plant’s operability and maintainability, and also result in considerable savings on concrete, structural steel, piping and electrical requirements. It also identified certain process improvements, including a move to direct heating from indirect heating of the ore feed for the process plant autoclaves.

The work undertaken has also increased the nameplate annual capacity for the planned process plant, from approximately 55,000 tonnes of nickel and 4,500 tonnes of cobalt to approximately 60,000 tonnes of nickel and 5,100 tonnes of cobalt. The Phase 2 review will continue to evaluate opportunities to increase the nameplate capacity further based upon appropriate incremental capital investments.

The principal changes in the Goro project configuration, intended to reduce the capital cost estimate and enhance the operating efficiency of the planned process plant and the process itself are expected to result in a material non-cash charge. As a result, capitalized expenditures incurred to date in the range of $180 to $210 million (U.S.) are currently anticipated to be written off and the precise amount of this non-cash charge will be finalized as of the end of the second quarter of 2004. This results in no substantial difference between pre-tax and after-tax amount.

Peter Jones, Inco’s President and Chief Operating Officer said that, the company is managing to increase production and efficiency in a plant with a significantly smaller footprint, without cutting any corners in the areas that will produce revenue without any compromise its design. The company made a number of design enhancements, particularly with respect to the engineering of the process, and environmental improvements.

The Phase 2 review, has evaluated the project schedule to start in early 2007, keeping in the following view. The additional time required in completing the Phase 2 review and assuming that decisions to restart the project were made in October 2004. Initial plant would start-up around mid-2007. Jones stated that, delay in completing our review in the right way, has allowed us to identify
important improvements and to develop a more reliable project, and will look for ways to improve on this schedule but only if we can ensure the proper construction and start-up of the plant.

Certain preliminary mining and civil construction work at the Goro site at a cost of about $6 million (U.S.) has been completed early 2004. Inco expects to undertake additional engineering and other works at an estimated cost of $25 million (U.S.) during the balance of the Phase 2 review.

Discussions between Inco and the French Government has continued for covering $350 million (U.S.) in tax advantaged financing which the later had agreed to provide to the project. These discussions continue to examine ways in which the French Government can provide additional financial support directly or indirectly to the project, including support for a power generating facility to be constructed in New Caledonia by a third party which would meet the Goro project’s anticipated external power requirements.

Inco and the Goro project company, Goro Nickel S.A., have also continued discussions with the Japanese consortium led by Sumitomo Metal Mining Co., Ltd. concerning their interest in acquiring up to a 25 percent in the Goro project and also detailed the terms and conditions of its future participation in the project that is expected to restart by the end of the second quarter of 2004.

Inco and Goro Nickel continue to make progress in developing a good neighbor agreement that will set out Goro Nickel’s commitments to local communities in New Caledonia. Mr. Jones has expressed his concern to ensure that local communities would benefit from this project in terms of employment, training programs, and business and service development opportunities. The company will also explore ways for community members to serve as advisors on key aspects of our operations, such as environmental safety matters.
The key milestones to be met to and which will enable Inco to make a decision in the late September - October 2004 period to proceed with the project include

Having achieved good neighbor agreement and having reached other appropriate understandings or arrangements with local labor unions and other key stakeholders in New Caledonia to enable any restart of the project, including construction, to proceed on a basis that avoids any potential labor or other disruptions,

Finalizing the terms of the tax-advantaged financing and other support to be provided to the project by the French Government

Reaching a satisfactory agreement on the disposition of the interest in Goro Nickel held by the French Government agency, Bureau de Recherches Geologiques et Minieres, as part of a required realignment of the equity ownership in the project to enable a new partner to be brought into the project and provide for New Caledonia’s equity participation in Goro.

Mr. Hand expressed his belief in the project, which is economically feasible and can be implemented in a financially prudent manner. of Inco’s clear and firm objective is to set right all the significant challenges which major projects like Goro confront.

In view of the opposition offered by the public towards increasing trends in tattooing and piercing its health risks Northern Kentucky Health Department revised the state law pertaining to the tattooing and piercing.

A new state law requires anyone under 18 to provide written notarized consent from a custodial parent or guardian. This revised edition also requires local health departments for the first time to inspect and certify body-piercing studios.

Health departments in Kentucky already inspect tattoo parlors. Mark Lind, 36, part owner of Lucky 13 Tattoo Inc. in Covington, which also does body piercings, said he welcomes the new regulation.

Rick Marksberry, a senior health environmentalist with the Northern Kentucky Health Department said that, owners of tattoo and body-piercing studios lobbied Kentucky lawmakers for the new rules as a way to help stop “fly-by-night” operations that may pose an added health risk to clients.

Ohio also requires tattoo and body-piercing parlors to have operating permits, but parental consent is handled differently. Ohio parents must actually accompany their children for tattoos or piercings. Indiana also requires a parent or legal guardian to be present and to give written consent for tattoos or piercings of any body part other than an earlobe.

Despite an unfavorable view from many health care providers, piercings of the lip, tongue, nose, eyebrow, navel and other body parts are increasingly popular. The American Dental Association opposes oral piercings, calling it a public health hazard. Tongue piercing can lead to chipped teeth and a higher risk of infection, the group says.

Lax sterilization procedures can also lead to the transmission of hepatitis B or hepatitis C, as well as tuberculosis, syphilis or HIV.

Anita Travis of the Kentucky Department for Public Health said that Northern Kentucky has seven tattoo studios operating in the four-county health district (Boone, Campbell, Kenton and Grant). Under the new law, health department workers will have about 50 body-piercing sites to inspect. That includes mall kiosks and jewelry departments that do ear piercings.

Sam Mello, 20, independence resident, student at Cincinnati State Technical and Community College and an aspiring Web designer has both earlobes pierced, as well as a piercing in his inner ear right above the lobes said that he supported the new state law which adds legitimacy to the business. He’s holding back on a tongue piercing to consider the effect on his business image.

Health departments will inspect body-piercing studios twice a year. In addition, artists must be registered (fee is $20) and adhere to certain safety standards. Steam autoclaves will be tested to make sure they kill microorganisms. The licensing fee for tattoo and body-piercing studios is $100.

Craig Moore, owner of Mother’s Tattoo and Piercing in Erlanger and Covington, said he already uses sanitary procedures and requires that parents be present.

Northern Kentucky Health Department’s Environmental Services has provided lines (859) 341-4151, for people who has any enquiries to be made or any complaints to be logged. Mr. Lind says that, it’s just good common sense to know what kids are doing and that proper sterilization, health safety measures are followed in this business.

Jocelyn Vézina, the Chief Executive Officer of TSO3 Inc., announced financial results for the second quarter of 2004. He stated that sales and marketing efforts continue unabated. During the last quarter we signed five more agreements with American hospitals and renewed the current agreements in Quebec, which confirms the considerable interest of the market for our technology and the confidence the end-users have in our Company. The company has collaboration with more than 20 of the major instrument manufacturers and of their suppliers.

TSO3 Inc. is located in Québec City, Canada, and was established in 1998. TSO3 currently has 45 employees, 17 of whom work exclusively in the Research and Development department. The company’s mission is to develop and market innovative and comprehensive sterilization solutions. TSO3 has perfected a novel sterilization process using ozone as a 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 the new generation of surgical and diagnostic instruments made of non-heat-resistant materials such as polymers and other plastics. The ozone sterilization process is a safe, efficient, fast and cost-effective response to evolving sterilization needs. Health Canada in May 2002 and the U.S. Food and Drug Administration (FDA) on September 3, 2003, have cleared 125L Ozone Sterilizer by TSO3 for commercialization by.

The Company’s R&D team has also undertaken the development of a smaller, point-of-use ozone sterilization device for operating rooms and private clinics, and is planning the development of an industrial-sized device for manufacturers of medical instruments, among others. For more information on TSO3, visit the Company’s Web Site at:www.tso3.com.

Summary of second quarter activities

Signing of five new agreements with American hospitals that will act as Referral Sites for the 125L Ozone Sterilizer.

Compatibility testing program for instruments is underway, in
collaboration with more than 20 instrument manufacturers as well as some 40 of their suppliers of raw materials and processes, in preparation for the rollout of our devices in Referral Sites and their commercial launch.

Start of the third phase of testing on prions, the infectious proteins that cause Creutzfeldt-Jakob Disease, the human version of mad cow disease. Presenting our sterilization process to the scientific community for the first time, by the scientific team at TSO3 during the 4th International Symposium on Ozone Applications.

Analysis of Financial Situation and Operating Results

Overview

The Company established in June 1998 has developed a unique new
sterilization process that uses ozone as the sterilizing agent. The first device 125L Ozone Sterilizer, has been designed to allow the sterilization of the new generation of surgical and diagnostic instruments made from heat-sensitive materials particularly polymers. After receiving its approval from Health Canada on May 3, 2002, and clearance from the United States Food and Drug Administration (FDA) on September 3, 2003, to sell the 125L Ozone Sterilizer and the Chemical Indicator.

In July 2003, the Company signed a distribution agreement with the U.S. firm SKYTRON, a medical equipment distribution company with a vast distribution network that covering the United States and Western Canada, with 120 sales representatives and 100 technical service technicians. The Company is currently working on the commercial launch of its technology, including compatibility of the process with the wide variety of commercially available surgical instruments as well as the installation of its sterilizer in Canadian pilot sites and U.S. referral sites.

Work on Compatibility

The Company expects to be able to provide a list of compatible
instruments that would meet a potential buyer’s minimum threshold before the end of the current fiscal year, relying on several partners. The Company has stepped up its collaboration with the leading industrial groups involved in the manufacture of surgical instruments and the production of construction materials, packaging and protective coatings. It is dedicating the bulk of its efforts to validating, as quickly as possible, guaranteeing a minimum of inconvenience to its initial users.

Canadian Pilot Sites

TSO3 entered into agreements in 2002 and 2003 with the following hospital centres:

· McGill University Hospital Centre - Montréal Neurological Hospital
· Sacré-Coeur Hospital of Montréal
· Centre hospitalier universitaire de Québec - Saint-François d’Assise Hospital
· Centre hospitalier de l’Université de Montréal - Notre-Dame Hospital
· Vancouver General Hospital
· Sunnybrook and Women’s College Health Science Centre of Toronto

Currently, the sterilizers are installed in five Canadian hospitals with an installation at Sunnybrook and Women’s College Health Science Centre of Toronto scheduled for this fiscal year. These hospitals have agreed to make their sterilization department facilities and equipment available for the project. Various tests are scheduled to demonstrate the compatibility of the Company’s sterilization process with a broad range of medical instruments. These tests also aim to showcase for hospitals the potential savings resulting from a sizable reduction in direct and indirect operating costs.

American Referral Sites

To obtain market recognition of its innovative technology, it is promoting the use of its 125L Ozone Sterilizer in several prestigious U.S. hospitals, and installations are scheduled before the end of the current fiscal year.

The Company has already signed agreements, in October and December 2003, with two of the best-known U.S. hospital networks - Cleveland Clinic Foundation and Spectrum Health. On May 5, 2004, the Company announced the signing of five additional agreements with referral sites in the United States, including four with major hospitals and one with an industrial customer.

SUMMARY RESULTS
Periods ended June 30 (Unaudited)
SECOND QUARTER 2004 (Restated) 2003(Restated)
—————————————————————————–
EXPENSES
Operating $ 149,130 $ 159,654

Research and
Development $ 366,813 $ 386,883

Marketing $ 492,109 $ 250,298

Administrative $ 889,946 $ 34,562

Financial $2,925 $5,219
—————————————————————————–
$1,900,923 $1,536,616
——————————————————————————
OPERATING LOSS $ 1,900,923 $ 1,536,616
OTHER REVENUES $ 334,605 $ 281,691
INCOME TAX $ 12,223 –

NET LOSS $ 1,578,541 $ 1,254,925
——————————————————————————-

Results of Operations

Quarter ended June 30, 2004 compared with the same quarter ended June 30, 2003.

Operations:

The operating expenses were incurred primarily for the Company’s Production and Customer Service Departments. Operating activities continued at the same pace between the two periods.

R&D Activities:

The Company continued its R&D work according to budget and at the same pace as the corresponding period in 2003. These expenses were incurred for work on compatibility, improving existing products and diversification of products resulting from the Company’s technological platform.

Marketing:

This increase is due to increased costs related to representation, promotional activities and professional fees. The increase between the two periods can also be attributed to the greater number of employees assigned to the commercial launch (from four to ten between the two periods).

Administration:

This increase results from the addition of a new accounting item: Share-based compensation. Since January 1, 2004, the Company will record stock-based compensation and other stock-based payments according to the fair value method as required by the new regulations implemented by the CICA. The compensation expense associated with this method of stock-based payment will therefore be recognized as earnings. This new method will be applied retroactively to 2002 and 2003. It will have no effect on years prior to 2002. As a result of this change, administrative costs rose by $83,587 compared with the same period in 2003. Costs related to communications with investors also contributed to the increase between the two periods.

Other Revenues:

Other Revenues comprised mainly of investment income, R&D tax credits and government grants. On the other hand, the Company did not received incomes of its products.

Net Loss:

The Company recorded a net loss of $1,578,541 or $0.05 per share, for the second quarter of 2004, compared to a restated net loss of $1,254,925 or $0.04 per share for the same period in 2003.

SELECTED ELEMENTS SIX MONTHS

04/06/30 03/06/30
—————————————————————————–

Other Revenues $ 510,521 $ 454,835

Net Loss $ 3,120,545 $ 2,365,121

Basic and diluted
net loss per share $ 0.1 $ 0.08

Liquidities +
Accounts receivable $ 13,758,532 $ 10,180,840

Assets $ 24,441,138 $ 19,791,357

Long Term Liabilities $ 68,500 $ 3,568,500
————————————————————————-
YEARS ENDED DECEMBER 31
2003 2002 2001
————————————————————————-

Other Revenues $ 1,171,334 $ 933,137 $ 585,582

Net Loss $ 4,733,266 $ 3,354,160 $2,091,476

Basic and diluted
net loss per share $ 0.17 $ 0.16 $ 0.11

Liquidities +
Accounts receivable $ 17,092,708 $ 13,489,125 $4,227,857

Assets $27,406,162 $22,437,616 $11,552,431

Long Term Liabilities $ 68,500 $ 3,689,477 $3,768,500
——————————————————————————-

Capital payments required and the various contractual commitments in coming fiscal years are as follows:

2004 2005 2006
——————————————————————————
$3,633,721 $83,176 $2,446

Amount $3,500,000 is composed of loans contracted under the Immigrant Investor Program. These loans are matched by investments whose value at maturity, September 2004, will be the equivalent of the amounts due.

SUMMARY OF QUARTERLY RESULTS

2004 2003 (Restated) 2002(Restated)
——————————————————————————-
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2

(000$
except
loss/share)
Revenues 335 176 559 158 282 173 270 408 133

Net Loss 1,579 1,542 1,275 1,386 1,255 1,110 1,029 521 994

Net Loss
perShare 0.05 0.05 0.04 0.05 0.04 0.04 0.05 0.02 0.05
(Basic and diluted)
—————————————————————————-

The Company’s revenues have come solely from investment income, income tax credits and government grants. Taken together, this item varies considerably from one quarter to the next, whereas on an annual basis, it has been relatively stable for the past two years.

CAPITAL RESOURCES:

Historically, the Company has funded its activities from several rounds of public and private financing and from various government subsidies. Since its inception in June 1998, the Company has raised $37 million from sale of its equity. For operations, the Company’s burn rate is on average of $700,000 approximately per month. The Company estimates its cash reserves are sufficient to fund operations for at least six quarters. Accordingly, the Company could require additional funding to achieve self-financing. The Company also regularly assesses acquisition possibilities that could require a potential source of additional funds.

The Company has a line of credit with which it can obtain advances up to a maximum of $500,000. Amounts had drawn on this line of credit, renewable on an annual basis, bear interest at the prime rate plus 1.5%. The Company’s accounts receivable and inventories are pledged as security on the line of credit, and the Company must satisfy certain financial ratios usually found in this type of loan. As at June 30, 2004, this line of credit was undrawn.

The Company entered into a non-refundable financial contribution
agreement with IQ Immigrants Investisseurs Inc., under which, upon attaining specific objectives, the Company can receive, based on its meeting specific objectives, a contribution totaling $1,000,000 payable in four (4) annual installments of $250,000 beginning in 2002. In 2002 and 2003, the Company received the first two installments, i.e. $500,000. The Company also qualified to the National Research Council of Canada’s with its “Process Optimization Bench” project that, once the Company has met certain objectives, will allow it to obtain a financial contribution of up to $150,000 until the end of 2004. As part of this project, the Company received, as of June 30, 2004, a cumulative amount of $71,000.

OFF-BALANCE SHEET TRANSACTIONS:
The Company made no off-balance Sheet transactions.

TRANSACTION WITH RELATED PARTIES:

The Company leases its premises from a company owned by the Company’s shareholders. Over the last two complete fiscal years, the Company has made the following related transactions, assesses at fair market value:

SIXMONTHS TWELVE MONTHS

04/06/30 03/06/30 2003 2002
—————————————————————————-
Rent $ 27,780 $ 27,780 $ 55,560 $ 53,352

Other
rent-related
expenses $39,703 $ 39,031 $ 83,034 $ 67,508
—————————————————————————-
$ 67,483 $ 66,811 $ 138,594 $ 120,860
——————————————————————————

CRITICAL ACCOUNTING ESTIMATES:

The Company financial statements are prepared in accordance with
generally accepted accounting principles in Canada (”G.A.A.P.”). The Company’s critical accounting policies include the use of estimates, revenue recognition, the recording of research and development expenses and the determination of the useful lives or fair value of goodwill and intangible assets. Some of our critical accounting policies require the use of judgment in their application or require estimates of inherently uncertain matters. Discussed below are those policies that we believe are critical and require the use of complex judgment in their application.

Use of Estimates:

The preparation of financial statements, in accordance with Canadian generally accepted accounting principles, requires management to make estimates and assumptions that affect the recorded amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the disclosure of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Since the process for presenting financial information presupposes the use of estimates, actual results could differ from the information presented.

Intangible assets are the acquisition cost of a patent license and the acquisition cost of a technology (prototype) including all the related rights. Since 2004, the license, stated at acquisition cost, is amortized according to the straight-line method over the license’s useful life, 16 years. An amortization of $23,228 has been recorded during the second quarter of 2004. The value of the license will be periodically tested for impairment based on an estimate of undiscounted cash flows for the remaining amortization period. Any impairment loss revealed by this test would be carried to earnings for the period during which the loss occurred.

The acquired technology (prototype) is considered an intangible asset with an indefinite useful life. As a result, the technology will not be amortized, but beginning in 2004, it will be subject to an annual impairment test. The test will be conducted more frequently if events or circumstances indicate that the asset’s value could have been impaired. The impairment test consists of comparing the recovery fair value of the asset with its carrying value. Any excess of book value over fair value will be charged to earnings in the period in which the impairment is determined.

Revenues Recognition:

To comply with industry procedures, the Company builds a permanent inventory of some forty sterilizers to enable those clients who so wish to conduct a three month trial. It is possible that the initial sterilizers sold will require a longer trial period. The Company plans to follow the new Canadian accounting standards regarding recognition of its revenues. Accordingly, the revenues will not be recognized until the major inherent risks to ownership and future obligations regarding the delivered product are transferred, i.e. at the end of the trial period. Revenues from the sale of these products will also be recognized, after deduction for sales discounts. Amounts received from clients or our distribution partner before the revenues are recognized will be posted as Deferred Revenue.

CHANGES IN ACCOUNTING POLICIES:

Production Costs

Since the start of the 2004 fiscal year, in order to better reflects the
sterilizer production cost, the Company now allocates the costs of direct labor and direct production costs to the cost of units in stock. This accounting treatment has a negligible impact on the results for the second quarter of 2004.

Compensation and Other Stock-Based Payments:

Since January 1, 2004, the Company records stock-based compensation and other stock-based payments according to the fair value method as required by the new regulations implemented by the CICA. The compensation expense associated with this method of stock-based payment is therefore recognized as earnings. This new method is applied to 2002 and 2003 retroactively. The adoption of this new accounting standard will result in additional remuneration costs of $615,102 in 2004, $364,176 in 2005, $130,195 in 2006 and $16,974 in 2007. Conversely, these charges will have no impact on the use of the Company’s capital.

RISK FACTORS:

Risks Related to Operating Activities:

The Company’s activities entail certain risks and uncertainties inherent to the industry in which it operates. However, management has implemented a risk-reduction strategy that addresses:

· The Company’s ability to suitably protect its intellectual property.

· The Company’s ability to establish strategic alliances;

· The Company’s ability to compete with existing technologies marketed by industry’s major players;

· The Company’s ability to adequately market its products;

· The Company’s ability to develop alliances in order to constantly
increase the number of ozone-compatible instruments.

LIQUIDITY AND FINANCIAL RESOURCES:

Management believes that it will be able to raise the necessary long-term capital to achieve corporate objectives. However, the availability of these financial resources cannot be guaranteed.

VOLATILITY OF SHARE PRICE:

Company share prices are subject to volatility. Financial and scientific results that differ from analysts’ projections may lead to significant variations in the price of Company shares.

PROSPECTIVE STATEMENT:

This document contains certain prospective statements that reflect the Company’s current expectations concerning future activities, which include risks and uncertainties. The real results can differ considerably from those expected by the Company and which are described above. Investors are advised to consult the Company’s quarterly and annual reports. The Company is not obliged to update these prospective statements.

EXAMINATION OF THE FINANCIAL STATEMENTS:
External Controller has not audited the Financial Statements.

FINANCIAL STATEMENTS
Balance Sheets as at

JUNE 30, DECEMBER 31, JUNE 30,
2004 2003 2003
Restated Restated
(Note3) (Note3)
(Unaudited) (Audited) (Unaudited)
——————————————————————————-
CURRENT ASSETS

Cash and
Temporary
Investments $13,227,336 $ 15,640,237 $ 9,590,139

Accounts
Receivable $ 531,196 $ 1,452,471 $590,701

Inventories $2,682,578 $2,349,047 $1,598,831

Investments
Immigrant
Investor
Program $ 3,440,048 $ 3,365,516 –

Prepaid
Expenses $ 62,892 $ 35,223 $ 92,633
—————————————————————————-
$ 19,944,050 $ 22,842,494 $ 11,872,304

INVESTMENTS - - $ 3,289,749

DEFERRED
FINANCING
COSTS $ 27,105 $ 84,822 $ 143,496

PROPERTY,
PLANT AND
EQUIPMENT $ 531,017 $ 508,909 $ 515,871

INTANGIBLE
ASSETS $ 3,938,966 $ 3,969,937 $ 3,969,937
—————————————————————————-
$ 24,441,138 $ 27,406,162 $ 19,791,357
—————————————————————————-
CURRENT LIABILITIES

Accounts
Payable
And Accrued
Liabilities $ 865,256 $ 917,271 $ 631,187

Deferred Revenue $ 40,014 - -

Current
Portion of
Long-term Debt $ 3,500,000 $ 3,620,978 $ 202,898
————————————————————————-
$4,405,270 $ 4,538,249 834,085
LONG-TERM
DEBT $ 68,500 $68,500 $ 3,568,500
————————————————————————-
SHAREHOLDERS’S EQUITY

Share Capital $ 37,651,920 $ 37,651,920 $ 27,721,522

Contributed
Surplus $ 1,924,799 $ 1,636,299 $ 1,423,405

Deficit (19,609,351) (16,488,806) (13,756,155)
—————————————————————————-
19,967,368 22,799,413 15,388,772
—————————————————————————–
$ 24,441,138 $ 27,406,162 $ 19,791,357
—————————————————————————–

Statements of Loss
Periods ended June 30 (Unaudited)

SECOND QUARTER SIX MONTHS
2004 2003 2004 2003
Restated Restated
(Note 3) (Note 3)
——————————————————————————-
EXPENSES
Operating $ 149,130 $ 159,654 $ 353,783 $ 319,600

Research and
Development $ 366,813 $ 386,883 $ 744,675 $ 784,245

Marketing $ 492,109 $ 250,298 $ 996,980 $539,082

Administrative $ 889,946 $734,562 $1,517,085 $1,165,928

Financial $ 2,925 $ 5,219 $ 6,320 $11,101
——————————————————————————
OPERATING
LOSS $ 1,900,923 $1,536,616 $3,618,843 $ 2,819,956

OTHER
REVENUES $ 334,605 $ 281,691 $ 510,521 $ 454,835

INCOME TAX $ 12,223 - $12,223 –
——————————————————————————-
NET LOSS $1,578,541 $1,254,925 $3,120,545 $2,365,121
——————————————————————————-

LOSS PER SHARE
Basic $ 0.05 $ 0.04 $ 0.10 $ 0.08
Diluted $ 0.05 $ 0.04 $ 0.10 $ 0.08

WEIGHTED AVERAGE NUMBER OF OUTSTANDING COMMON SHARES

Basic 31,400,295 28,028,443 31,400,295 27,992,236

Diluted 31,403,126 28,058,385 31,617,686 28,004,795
——————————————————————————-

Statements of Deficit
Periods ended June 30 (Unaudited)

SECOND QUARTER SIX MONTHS
2004 2003 2004 2003
Restated Restated
(Note 3) (Note 3)

——————————————————————————-
Balance,
Beginning
of Period $18,030,810 $12,483,989 $ 16,174,524 $11,320,954

Recovery due to
the Change in the
Accounting Policies
concerning the
Stock Options Plan - - 314,282 21,644
——————————————————————————
18,030,810 12,483,989 16,488,806 11,342,598

Issue Expenses of
Share Capital - 17,241 - 48,436

Net Loss $1,578,541 $1,254,925 $3,120,545 $2,365,121
——————————————————————————

Balance, End
of Period $ 19,609,351 $ 13,756,155 $ 19,609,351 $ 13,756,155
——————————————————————————-

Statements of Contributed Surplus
Periods ended June 30 (Unaudited)

SECOND QUARTER SIX MONTHS
2004 2003 2004 2003
Restated Restated
(Note 3) (Note3)
————————————————————————-
Balance,
Beginning
of Period $1,761,468 $ 1,343,661 $1,322,017 $ 1,305,724

Recovery
due to the
Change in the
Accounting Policies
concerning the
Stock Options Plan - - $314,282 $21,644
————————————————————————-
$1,761,468 $1,343,661 $1,636,299 $1,327,368

Warrants issued
In the Public
Offering - - - 16,293

Stock-based
Compensation 163,331 79,744 288,500 79,744
—————————————————————————–
Balance, End
of Period $1,924,799 $ 1,423,405 $ 1,924,799 $ 1,423,405
——————————————————————————

Statements of Cash Flows
Periods ended June 30 (Unaudited)

SECOND QUARTER SIX MONTHS
2004 2003 2004 2003
Restated Restated
(Note 3) (Note3)
————————————————————————-
OPERATING ACTIVITIES
Net Loss $1,578,541 $1,254,925 $3,120,545 $ 2,365,121

Adjustment for:
Depreciation and
Amortization of
Property, Plant
And Equipment $46,585 $49,142 $89,790 $96,311

Depreciation and
Amortization of
the License $23,228 - $30,971 –

Depreciation and
Amortization of
Deferred Financing
Costs $29,018 $29,017 $57,717 $57,718

Stock-based
Compensation $163,331 $79,744 $288,500 $79,744

Gain on Sale of
Property, Plant
and Equipment - - - 193
——————————————————————————
1,316,379 1,097,022 2,653,567 2,131,541

Change in Non-Cash
Operating Working
Capital Items 157,611 748,844 400,167 1,423,992
—————————————————————————–

CASH FLOW APPLIED
TO OPERATING
ACTIVITIES 1,473,990 1,845,866 3,053,734 3, 555,533
——————————————————————————-
INVESTING ACTIVITIES

Temporary
Investments 2,439,254 631,661 7,137,068 8,772,512

Acquisition of
Property, Plant
and Equipment 43,721 31,970 111,898 108,876

Increase in the Value
of Investments –
Immigrant Investor
Program 37,472 37,472 74,532 74,533

Sale of Property,
Plant and Equipment - - - 14,500
——————————————————————————-

CASH FLOW APPLIED
TO INVESTING
ACTIVITIES 2,520,447 562,219 6,950,638 8,603,603
——————————————————————————-
FINANCING ACTIVITIES

Warrants - - - 16,293

Repayment of
Long-Term Debt 105,244 141,667 120,978 183,333

Share Issue - - 948,241 418,195

Share Issue Expenses - 17,241 - 48,436
——————————————————————————
CASH FLOW FROM
FINANCING
ACTIVITIES 105,244 158,908 827,263 202,719
——————————————————————————-
INCREASE IN CASH AND
CASH EQUIVALENTS 4,099,681 1,442,555 4,724,167 5,250,789
——————————————————————————-
CASH AND CASH
EQUIVALENTS,
BEGINNING
OF PERIOD 14,887,763 11,032,694 6,063,915 4,339,350
——————————————————————————-
CASH AND CASH
EQUIVALENTS, END
OF PERIOD $10,788,082 $9,590,139 $10,788,082 $9,590,139
——————————————————————————-

Notes to the Financial Statements:

1. The Unaudited financial statements are prepared in accordance with Canadian generally accepted accounting principles for interim financial statements and do not include all the information required for complete financial statements. The Unaudited financial statements are consistent with the policies outlined in the Company’s audited financial statements for the year ended December 31, 2003. The interim financial statements and related notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2003. Certain of the prior periods comparative amounts have been reclassified to conform to the current year’s presentation.

2. Accounting Policies

Intangible Assets

Intangible assets are the acquisition cost of a patent license and the acquisition cost of a technology (prototype) including all the related rights. The license, stated at acquisition cost, is amortized according to the straight-line method over the license’s useful life, 16 years. The value of the license will be periodically tested for impairment based on an estimate of undiscounted cash flows for the remaining amortization period. Any impairment loss revealed by this test would be carried to earnings for the period during which the loss occurred. The acquired technology (prototype) is considered an intangible asset with an indefinite useful life. As a result, the technology will not be amortized, but will be subject to an annual impairment test. The test will be conducted more frequently if events or circumstances indicate that the asset’s value could have been impaired. The impairment test consists of comparing the recovery fair value of the asset with its carrying value. Any excess of book value over fair value will be charged to earnings in the period in which the impairment is determined.

3. Change in Accounting Policies

Stock-Based Compensation and Other Stock-Based Payments

Since January 1, 2004, the Company has recorded stock-based compensation and other stock-based payments according to the fair value method as required by the new regulation issued by the CICA. The compensation expense associated with this method of stock-based payment is therefore recognized as earnings. This new guidance is applied retroactively and contains the recovery of 2002 and 2003 data. It has no effect on the previous years before 2002. The fiscal effect on the results is represented by an increase of the administration expenses of $288,500 for the six-month period ended on June 30, 2004. ($79,744 for the six-month period ended on June 30, 2003). On the balance sheets, the effect of this modification is represented by an increase of the deficit and the contributed surplus of $314,282 on June 30, 2004 ($101,388 as of June 30, 2003).

4. Share Issues

JUNE 30, DECEMBER 31,
ISSUED 2004 2003

——————————————————————————
31,400,295 common shares (31,400,295 as of December 31, 2003)
$ 37,651,920 $ 37,651,920
——————————————————————————

On February 17, 2004, the Company has granted 40,000 stock options to an employee and to a director. Each option, which vests over 3 years, entitles the holder to subscribe to one common share of the Company at a price of $2.75 until February 16, 2014. None of these options has been exercised as at June 30, 2004. On March 24, 2004, the Company has granted 20,000 stock options to an employee. Each option, which vests over 3 years, entitles the holder to subscribe to one common share of the Company at a price of $1.85 until March 23, 2014. None of these options has been exercised as at June 30, 2004. On May 11, 2004, the Company has granted 259,000 stock options to employee and managers. Each option, which vests over 3 years, entitles the holder to subscribe to one common share of the Company at a price of $1.73 until May 10, 2014. None of these options has been exercised as at June 30, 2004. The Black-Scholes options valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. A practice, which significantly differs from the Company’s stock option awards. In addition, option valuation models require the input of highly subjected assumptions including the expected stock price volatility. Any changes in the subjective input assumptions can materially affect the fair value estimate. The weighted average fair value of the options at the grant date is estimated using the Black-Scholes option-pricing model under the following weighted average assumptions: 2004

Risk Free Interest Rate 4.91 %
Expected Volatility 54.12 %
Life 10 years
Expected Dividend Yield 0 %
Weighted Average of Fair Value at Grant Date $1.32

5. Dilutive Items:

SECOND QUARTER SIX MONTHS
WEIGHTED WEIGHTED
AVERAGE AVERAGE
EXERCISE EXERCISE
NUMBER PRICE NUMBER PRICE
——————————————————————————-
Warrants
Outstanding
at the
Beginning of the
Period / Exercise 624,202 $ 2.09 624,202 $ 2.09

Granted - - - -

Exercised - - - -

Expired (163,726) 2.00 (163,726) 2.00
——————————————————————————
460,476 $ 2.12 460,476 $ 2.12
——————————————————————————

Stock Options

Outstanding at the
Beginning of the
Period / Exercise 1,499,668 $ 2.04 1,469,668 $ 1.98

Granted 259,000 1.73 319,000 1.87

Exercised - - - -

Expired /
Cancelled (15,000) 1.70 (45,000) 1.70
—————————————————————————–
1,743,668 $ 2.00 1,743,668 $ 1.96
—————————————————————————–
Outstanding at
the End of the
Period / Exercise 2,204,144 $ 2.03 2,204,144 $ 2.00
—————————————————————————–
Exercisable at
the End of the
Period / Exercise 1,172,031 1,172,031
————————————————————————-

6. Financial Instruments:

Interest Rate Risk

Long-term debt bears interest at fixed rates. The Company expects to reimburse this debt fully at maturity. As a result, the risk related to cash flow is minimal. In addition, the long-term debt is made up mainly of loans related to the Immigrant Investors Program, of an amount of $3,500,000, matching the investments that, upon maturity, will be equal to the amounts due.

The National Research Council of Canada (NRC) facilities in Winnipeg has conducted the third phase of testing on prions at TSO3 but it has not obtained the results anticipated.

TSO3

TSO3 Inc. is located in Québec City, Canada, and was established in 1998. TSO3 currently has 45 employees, 17 of whom work exclusively in the Research and Development department. The company’s mission is to develop and market innovative and comprehensive sterilization solutions. TSO3 has perfected a novel sterilization process using ozone as a 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 the new generation of surgical and diagnostic instruments made of non-heat-resistant materials such as polymers and other plastics. The ozone sterilization process is a safe, efficient, fast and cost-effective response to evolving sterilization needs. Health Canada in May 2002 and the U.S. Food and Drug Administration (FDA) on September 3, 2003, have cleared 125L Ozone Sterilizer by TSO3 for commercialization by.

The Company’s R&D team has also undertaken the development of a smaller, point-of-use ozone sterilization device for operating rooms and private clinics, and is planning the development of an industrial-sized device for manufacturers of medical instruments, among others.

Re-evaluation of Protocols

The partial deactivation of prions has generated symptoms of the disease in certain subjects inoculated with substances extracted from plaques sterilized with ozone, which deviates with the results obtained in previous studies where ozone showed a capacity to deactivate prions superior to the level observed during the current phase of testing.

Simon Robitaille, Vice President, Operations, and Director of Research at TSO3 emphasized, that these partial results are disappointing, however the recognized oxidizing power of ozone, as well as the results of our previous studies, moves us to re-evaluate our current protocols and to maintain our research program. We still believe in the superior capacity of ozone to deactivate prions. New scientific publications utilizing a different methodology recently impelled TSO3 to re-evaluate the Company’s protocols so that its results can be compared with other technologies.

The current evaluation consists of taking the brains from sick mice and making a homogenate that is spread on plaques and left to dry, then sterilized in the ozone sterilizer, while other samples are sterilized with steam. Comparison in terms of effectiveness is made between ozone to the autoclave. The residual matter is then recovered and injected into the brains of mice. This phase was planned to take six months, scheduled to conclude at the end of October 2004. TSO3 intends to initiate a new phase of testing, with new protocols, at the end of 2004.

Jocelyn Vézina, the Chief Executive Officer at TSO3 added as far as our commercialization strategy is concerned, the business plan for the 125L Ozone Sterilizer is based on the benefits of our technology, such as its efficiency, its rapidity and cost advantages. This news in no wise affects TSO3’s business plan. Nor will it impact the commercial launch of the 125L or its expected market penetration.

For more information on TSO3, visit www.tso3.com.

Local tattoo artist’s dreams come true. The doors to a new revolution opened on Sept. 1. The day they would remember all their lives. Their dreams took shape into Revolution Studio, a new tattoo studio, located at 50th and L Streets in Omaha.

The seed to the revolution was sowed with one common mission: to revolt against the Boss-Slave system. The system, in which, bosses treat the workers as slaves. Commanding them what to do and what not to. They were tired of being held back from their careers as artists.

Finally, their dreams of making city more colorful, one person at a time, Ideas of being their own bosses, come true. Dreams of doing what they love, creating art in the form of tattoos on human canvas.

Lenny Renkin, Rob Pace, Isaac Armas and Chad Elsasser are all tattoo artists. They have come together from different tattoo studios to start their own. They finally succeeded in the form of Revolution Studio.

Their art is people. Pace has been tattooing for hire for six years, while Renkin, Elsasser and Armas started their tattooing careers more seriously two years ago. Each had, their own reasons for their common studio.

Renkin says that tattooing is just another medium since, she been artists for her whole life. When asked about any fears in opening their own business, Renkin simply replied that, we have no fears about opening the shop. If we did, we wouldn’t have opened it. Her future plans are simple and optimistic by saying that, she would like to improve constantly and not move backwards.

When coming to Pace he says that is just glad enough that he is able to own his own studio. In one simple word, he conveyed everything as freedom. I have worked for people in the past and it was a disaster, an absolute disaster. Friends become enemies. Freedom of schedule, and freedom to work at their own pace and Freedom, to have their own goals. My mission is to only create 100 percent the best of my ability over anything just to create art. Creating human art, like tattooing, is by far the greatest mission adds Pace.

Elsasser, a junior in the UNO College of Fine Arts, expresses his views as people may argue that tattoos aren’t fine art, but he is ready to prove those people wrong. Though, it is hectic juggling school and work at the studio, he takes it as a cross curriculum. I’m glad I can bring the fine arts into tattooing and the tattooing into the fine arts world. It’s hard in the academic world to show them just how much of a fine art tattooing really is, but I’m glad I had a chance to do it. His goal is to have work all about the art.

Armas said that his goal is to be the No. 1 store in Omaha, not in dollars, but in artwork put out into the city.

They are also doing what it takes to have their art be safe. There are hundreds of things they do that the client probably never thinks of. Everything is disposable, tools that are not disposable get a liquid sterile then get hand scrubbed and sanitized through autoclaves.
Safety of the people coming into our shop is what we watch out for, along ours.

Pace boldly admits that, it takes a lot of work to open your own business. Besides your having your business licenses, tax I.D. numbers, your rent spots, advertising and common sense things, it takes pure perseverance and an insane drive to conquer.