January 14, 2004




VICTORIA, BRITISH COLUMBIA, Jan. 14, 2004 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX: FSI, FRANKFURT: FXT), the developer and manufacturer of Water$avr, the first commercially viable water evaporation retardant in the world, today announced that CapStone Investments, an institutional investment firm, has reiterated its “Long-Term Buy” rating and raised its target price of the Company’s stock to $6 from $4.

Capstone, which originally initiated research coverage of Flexible Solutions in October, said in its latest recommendation that its “estimate is based on organic growth from the Company’s current products and Water$avr trials, as well as its prospects to enter into new product areas.” The report also stated, “There is also the possibility that Flexible could sign a significant Water$avr contract that could cause revenues and earnings to rise substantially.”

FSI recently completed major trials for WaterSavr in North Africa and currently is focused on establishing potentially significant markets in the United States. The Company previously announced that internal in-house experiments determined that Water$avr can be modified to safely disperse an effective, environmentally friendly, mosquito control application targeting the West Nile Virus, Equine Encephalitis, Malaria and Dengue Fever and expects outside testing to confirm its findings. Water$avr also is being developed as a spreading application for irrigation and crop-enhancement purposes.

CapStone Investments makes its research reports available in real-time to institutional investors through Multex at www.multex.com, Thomson Financial-First Call at www.firstcall.com and Research Edge at www.zackspro.com/edge, a product of Zack’s Investment Research Inc.

About CapStone Investments

CapStone Investments (www.capstoneinvestments.com), based in San Diego, Calif., with its Research Division in Milwaukee, Wis., is a full-service investment firm, servicing a multi-billion dollar institutional account base. CapStone Investments is a member of the National Association of Securities Dealers (NASD), the Securities Investment Protection Corporation (SIPC) and the Municipal Securities Rulemaking Board (MSRB). CapStone Institutional Services (CapStone) is a division of CapStone Investments. CapStone is a dedicated alternative investment specialist focused on providing comprehensive service to the alternative investment manager.

About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is the developer and manufacturer of Water$avr, a water evaporation retardant. FSI is an environmental technology company specializing in energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world. Water$avr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Water$avr, which is patented, has been certified by the United Nations, the National Sanitation Foundation (NSF) and meets the drinking water standards of the American National Standard Institute (ANSI). Heat$avr, 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 Tropical Fish(tm) product targets the residential swimming pool market.

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.


32 East 57th Street

New York, New York 10022

Tel: 212.888.4848

Investor Relations CANADA:

Jens Biertumpel

Tel: 604.682.1799

Corporate Head Office:


David Katzov / Grant Moonie

Tel: (250) 477-9821 Fax: (250) 477.9912