NEWS RELEASE Jan 4, 2007

FSI SETTLES LAWSUITS – NO EFFECT ON PRODUCTS OR FINANCIALS

VICTORIA, BRITISH COLUMBIA, Jan 4, 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 patented, green amino acid products for agriculture, oilfield, detergent and water treatment markets.

FSI today announces that all lawsuits between FSI and Sunsolar Energy Technologies have been settled on a confidential basis. FSI is pleased to have put such proceedings behind it and looks forward to continuing to build its world leading Ecosavr and Heatsavr brands in the field of liquid pool covers. This settlement will have no effect on FSI's financials nor on the Company's ability to sell its swimming pool products under its current trade-marks and trade-dress.
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is the developer and manufacturer of WaterSavr, the world’s first commercially viable water evaporation retardant. FSI is an environmental technology company specializing in energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world. WaterSavr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Heatsavr, a “liquid blanket” evaporation retardant for the commercial swimming pool and spa markets, also reduces humidity and lowers water heating costs, resulting in energy savings of 15% to 40%. The Company’s Ecosavr product targets the residential swimming pool market.

The Company’s Nanochem Solutions, Inc., subsidiary specializes in environmentally friendly, green chemistry, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic acid. TPA is used in detergents, water treatment, and scale control and as an anti-crystallizing additive to fertilizers.

Safe Harbor Provision

The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.