Theralase Quarterly Newsletter - December 2011

An update for clients, investors and employees

Theralase’s Patented Photo Dynamic Compound (PDC) Effective in Destruction of Cancerous Tumours in Live Animals

Theralase announced on December 1^st that its patented light activated PDC technology was successful in destroying cancerous tumours located under the skin of a live animal. We are excited that our PDC technology has achieved this critical milestone because we have now validated our technology in the destruction of cancerous tumours in live animals. The Theralase PDC treatment was successful and well tolerated by the animals and as a result, this preclinical success will help the Company to identify the leading PDC to take forward for additional animal and human cancer destruction applications. Now that our PDC technology has been proven successful in the destruction of cancerous tumours in animals, this may lead to a new significant revenue stream for the Company in the destruction of cancerous tumours in companion animals and humans in the not too distant future.

Theralase Light Activated Photo Dynamic Compounds Successfully Destroy E. coli Bacteria

Theralase has developed a new application for its patented Photo Dynamic Compounds (PDCs); specifically, the destruction of Escherichia coli, commonly known as E. coli, a widely prevalent disease causing bacteria. Theralase announced on September 14^th, that our research demonstrated that our Photo Dynamic Therapy (PDT) destruction of E. coli bacteria is effective and represents a significant opportunity in the area of disinfection and sterilization of bacterial pathogens that may cause serious and potentially life-threatening illness. Commercialization of these technologies becomes more and more apparent, as our research and development progresses, allowing us the opportunity to introduce these technologies to the world in a variety of diverse applications. The next steps for Theralase will be to prove out the technology further in a lab setting and then develop a pilot project with a major food manufacturer.

Theralase and George Brown College Join in Government-Funded Research to Combat Food Contamination

In the wake of many outbreaks of consumer food contaminations associated with microbial pathogens such as Listeria monocytogenes (Listeria) and Escherichia coli (E. coli) and their various strains, Theralase completed a the study with George Brown College to determine the feasibility of using our patented PDCs for sanitation in the food service, food manufacturing and medical industries. Given their history and pedigree in culinary arts and additional focus on food applied research, the George Brown College Centre for Hospitality and Culinary Arts was a perfect partner for applied research in new and innovative sanitation protocols and techniques using the company’s patented lasers and photo dynamic compounds. The results proved that the Theralase PDC technology is highly effective in the destruction of food related pathogens.

Theralase Introduces Low Priced Laser Series - New TLC-900 Laser Series Offers Theralase’s Renowned Clinical Performance at Lower Prices

On November 17^th Theralase launched a new version of the high performance Theralase TLC-1000 therapeutic medical laser series, known as the Theralase TLC-900 series, which effectively eliminates the controller and allows the practitioner to operate the laser probes independently. This TLC-900 system allows the practitioner the ability to benefit from the high performance Theralase laser system technology, albeit with less features and versatility than the TLC-1000 series, but at an overall cost savings. We believe that this will open up the therapeutic laser market and give practitioners the ability to choose a high performing product, such as the Theralase, at the same price points as lower end, non-effective, competitive technology.

Theralase Closes Equity Financing

On October 25^th Theralase Technologies Inc. announced that it closed a non-brokered private placement of 1,050,000 units at a price of Cdn $0.40 per Unit for gross proceeds of Cdn $420,000.00. Each Unit consists of one common share in the capital of the Company and one-half of one non-transferable common share purchase warrant. Each whole Warrant entitles the purchaser to purchase one additional common share in the capital of the Company until October 25, 2013 at a price of Cdn $0.60 per Warrant Share. The securities issued under the Private Placement including any shares issued upon exercise of the Warrants are subject to a four month hold period, expiring February 25, 2012.

The company intends to utilize the proceeds of the offering to provide additional working capital to further develop the Company's prospects in a number of areas; specifically:

• Support of small animal cancer trials at the Ontario Cancer Institute, Princess Margaret Hospital, University Health Network.

• Research and development of Photo Dynamic Compounds used in conjunction with the patented Theralase laser technology in the destruction of bacteria in the area of food safety.

• TLC-1000 and TLC-900 series therapeutic medical laser marketing and sales expansion into the US.

• TLC-2000 therapeutic medical biofeedback laser commercialization.

Theralase Publishes White Paper

On October 27^th Theralase released a pivotal White Paper written by Chief Scientific Officer,  

Arkady Mandel, MD, Ph.D., D.Sc. entitled

 “UNDERSTANDING THE MECHANISMS OF LOW LEVEL LASER THERAPY (LLLT)”

Low Level Laser Therapy (LLLT) is a rapidly growing modality used in the rehabilitation and physical therapy markets. A number of safe and beneficial therapeutic effects of LLLT have been reported in numerous clinical conditions; however, despite many reports of positive findings from experiments conducted in-vitro, in-vivo animal models and in randomized controlled clinical trials worldwide, the use of this scientifically proven, clinically effective, non-invasive and anti-inflammatory human modality has yet to find mainstream adoption by medical doctors.

The aim of the White Paper is to:

1) introduce the unfamiliar reader, with some medical background, to the contemporary concept of LLLT and its pathophysiological significance,

2) review the role of the mitochondrial pathway in the mechanisms of LLLT,

3) provide necessary practical guidance based on scientific and clinical experience,

4) assist manufacturers in their research and development,

5) help health care practitioners choose and use an adequate light therapy device,

6) outline the prospects of LLLT as an avenue to treat chronic inflammation and pain and to aid in an effective clinical practice.

The White Paper may be accessed from www.theralase.com.

OUTLOOK

Theralase will continue to focus on increasing product sales of the TLC-1000 laser technology and the newly released TLC-900 controllerless laser series in the Canadian, US and international markets in 2012, supported by new independent scientific research confirming the effectiveness of Theralase’s proprietary and patented technology. Theralase will commercialize its patented TLC-2000 Biofeedback technology for launch in the third quarter of 2012, while researching and developing its patented TLC-3000 Photo Dynamic Compounds targeting the destruction of cancer, bacteria and viruses.

The groundwork has been laid for significant growth. Our proven patented technology has no equal and our ability to dramatically scale sales and marketing geographically as well as demographically will allow Theralase a significant first mover market advantage. Theralase is currently debt free as it utilizes its profits from the sale of its TLC-1000 Therapeutic Medical Laser platform to pay for its future growth in the form of the launch of the TLC-900 series, the launch of the TLC-2000 Biofeedback Therapeutic Laser Technology and the commercialization of the TLC-3000 Photo Dynamic Compound Cancer Destruction Technology.

For more information please contact:

Roger Dumoulin-White                                                                                

President & CEO,                            

416-447-8455 ext. 225                                   

rwhite@theralase.com                

Greg Bewsh

Director of Investor Relations,

416-447-8455 ext. 262

gbewsh@theralase.com      

Survey of Chiropractic Profession Finds That Laser Care Increases Revenues and Patients Heal Faster

By Donald M. Petersen Jr., BS, HCD(hc), FICC(h)

An impressive 92% of DCs who use laser care would recommend other DCs add therapeutic lasers to their practice, a Dynamic Chiropractic email survey has found. Not surprisingly perhaps, 75% of those who would recommend it to peers said it is because these devices have proven to be a very effective part of their treatment strategy, while 45% said their patients enjoy laser care and have referred others as a result of the laser care.

As Dr. Todd Austin of Illinois remarked: "Our clinic's low level lasers improve ROM, decrease inflammation and edema, help to increase oxygenation of the damages target issues, speed up the healing process and (even more importantly in my opinion) increase the damaged tissue's ability to handle additional stress. The bottom line is: if there are damaged cells or tissues present, LLLT (low-level laser therapy) will usually be of benefit."

 Equally impressive are the business results our respondents reported: Forty percent said they have seen an increase in practice income as a result of incorporating laser therapy into their treatments. Another 26% reported that the reputation of their practice has improved.

Who Uses Lasers and How

 Approximately a third of DCs utilize laser care on half or more of their patients. When asked about the patient complaints they had the most success addressing with laser care treatment, they responded:

 ■Extremity Pain - 77%

■Neck & Shoulder Pain - 72%

■Back Pain - 60%

■TMJ Disorders - 41%

■Disc Herniation - 29%

■Disc Herniation with Radiculopathy - 27%

 Laser care fits well into the chiropractic philosophy with 94% of DC users totally or somewhat agreeing that they "believe in the philosophy of laser care."

One doctor who took the survey noted: "Overall, I find it a very effective therapy when used alone and works excellently with Chiropractic adjustments." Stephen Fedele, Jr., DC, of California agrees: "It speeds recovery and shows that they can recover without drugs and surgery."

Quality is not an issue as 90% totally or somewhat agreed that they are "confident in the quality of my laser." And while price can always be a challenge, just under 60% agreed (totally or somewhat) that their laser was "very affordable." Dr. Stephen M. Savoie of Florida said laser therapy "is an extremely effective modality that provides pain relief and recovery with less effort on the doctor's part at an affordable price."

 Why Not Use Lasers?

 So why don't more doctors of chiropractic use lasers in their practice? The answer appears may be a lack of information.

Only 45% of DC users totally agreed that they were ready to use their laser based upon the "information provided with my laser." Many DCs gained additional information before and after they made their purchase from a number of sources.

 This same theme is echoed by doctors who don't current own lasers, but are considering making a purchase. Less than half are "very" or "somewhat" confident in their "understanding of lasers and their application in your practice."

 When asked what additional information would assist them in making their decision, doctors who considering purchasing a laser device for their practice stated overwhelmingly preferred they wanted in writing or from attending seminars and webinars.

 Laser Preferences

 One of the more interesting data points to emerge from this survey was the apparent lack of differentiation between "high level" lasers (Class IV/above 500 milliwatts) and "low level" lasers (Class III/below 500 milliwatts). When asked which type of laser these doctors are considering to purchase, 54% stated "either." This may also suggest that doctors believe that both are equally effective.

 Lasers are clearly seen as a valuable clinical tool by those DCs who are currently using them in their practice. They are seen as an effective adjunct to the adjustment, fitting both philosophically and financially. In addition they increase both income and referrals for almost half of the DCs who use them. According to William J. Kneebone, DC, of California "Therapeutic laser provides the most rapid and predictable relief of any modality that I've used in my 32 years of practice.

Those doctors thinking about adding lasers to their care should spend a good amount of time learning about how lasers work and what specific products are available. DCs will want to be confident that they are purchasing the right therapeutic laser for their practice.

For more information, please call 1-866-843-5273 or visit www.theralase.com

End of Year Demo Sale on the #1 Rated Therapeutic Laser in the World

	Please call 1.866.843.5273 or email sales@theralase.com  to find theTheralase that's right for you, at a price that can't be beat.  *Sales order must be signed and product delivered prior to December 31, 2011 toqualify for this promotion.

Theralase’s Patented Photo Dynamic Compound (PDC) Effective in Destruction of Cancerous Tumours in Live Animals

Theralase’s Patented Photo Dynamic Compound (PDC) Effective in Destruction of Cancerous Tumours in Live Animals FOR IMMEDIATE RELEASETORONTO ONTARIO - December 1st, 2011Previously released November 29, 2011 Theralase Technologies Inc. (TSXV: TLT) announced previously that its patented light activated PDC technology was successful in destroying cancerous tumours located under the skin of a live animal. Due to overwhelming investor interest in the November 29, 2011 press release, the Company has provided this press release for further clarity on this important milestone in the history of the Company. Roger Dumoulin-White, who is the President and CEO of Theralase Inc. stated, "Theralase is excited that our PDC technology has achieved this critical milestone because we have now validated our technology in the destruction of cancerous tumours in live animals. The Theralase PDC treatment was successful and well tolerated by the animals and as a result, this preclinical success will help the Company to identify the leading PDC to take forward for additional animal and human cancer destruction applications. Now that our PDC technology has been proven successful in the destruction of cancerous tumours in animals, this may lead to a new significant revenue stream for the Company in the destruction of cancerous tumours in companion animals and humans in the not too distant future." About Theralase Technologies Inc. Theralase Technologies Inc. founded in 1995, designs, develops, manufactures and markets patented, superpulsed laser technology utilized in biostimulation and biodestruction applications. The technology is safe and effective in the treatment of chronic pain, neural muscular-skeletal conditions and wound care. When combined with its patented, light-sensitive Photo Dynamic Compounds, Theralase laser technology is able to specifically target and destroy cancers, bacteria, viruses as well as microbial pathogens associated with food contamination. For further information please visit www.theralase.com. regulatory filings may be viewed by visiting www.sedar.com This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The Company disclaims any obligation to update these forward-looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchanges) accepts responsibility for the adequacy or accuracy of this release. Downloads: Download the Press Release For more information contact: Roger Dumoulin-White, President and CEO, Theralase Technologies Inc. 416-447-8455 ext. 225 rwhite@theralase.com Greg Bewsh Director of Investor Relations 416-447-8455 ext. 262 gbewsh@theralase.com Regards, The Theralase Team Web Sites: www.theralase.com Theralase Laser Clinic Clinic Locator