News Release

11 October 2007

FSI Announces Low Cost Financing for Construction of New Facility

 

VICTORIA, BRITISH COLUMBIA, Oct. 11, 2007 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX: FSI, FRANKFURT: FXT), is the developer and manufacturer of biodegradable and environmentally safe water and energy conservation technologies, as well as anti-scalant technology. Today the Company announces a low interest rate financing to cover a significant portion of the cost of the aspartic acid facility in Alberta.

In order to prevent dilution to FSI shareholders, management has obtained a loan for $2 million Canadian at 5%. The loan is interest only in year 1, while the new facility is prepared for production. A 5 year interest and principle repayment term then begins in year 2. US$3 million has already been raised in an equity financing to build the facility.

With regard to expansion of manufacturing to include aspartic acid, FSI will begin refitting the newly purchased building by November 30, 2007, the closing date. CEO Dan O’Brien states, “We expect production from this facility to begin in Third Quarter, 2008 with full production in Fourth Quarter, 2008.” Mr. O’Brien continues, “It is anticipated that the new facility will reduce the NanoChem Division’s input costs (of aspartic acid), resulting in profit margins for TPA that were experienced a number of years ago, when the price of crude oil was much lower. We expect that the combination of better margins and government regulation in our product’s favor will improve our cash flow and profits. The continued increase in the cost of competing oil derived and non-biodegradable products should allow Flexible Solutions easier access to the large main stream detergent and water treatment industries.”