September 5, 2002



Corporate Headquarters

2614 Queenswood Dr.

Victoria BC V8N 1X5




Flexible Solutions International and Ondeo Nalco Company Sign

Global Distribution Agreement for Water$avr

Innovative Environmental-Friendly Solution to Revolutionize Water Resources Conservation –

Ondeo Nalco Company, a subsidiary of SUEZ (SZE) and Flexible Solutions Intl, Inc. (FXSO – OTCBB; FXT -Frankfurt) announced today a global distribution agreement for Water$avr, the first potentially commercially viable water evaporation retardant in the world. This breakthrough solution could allow water intensive industries and municipalities to manage water resources in a safe and effective way, while reducing operation costs. Ondeo Nalco will be the exclusive supplier and distributor for Water$avr worldwide for the mining market and some parts of the municipal market, and will have non-exclusive distribution rights in other markets. The agreement is effective immediately.

Water$avr was recently developed to answer the growing need for industries and municipalities to manage their water resources effectively. According to independent testing, this environmentally sound technology may allow customers to reduce water evaporation of up to 40%. The market potential for Water$avr is US$2 billion in North America and up to US$8 billion globally.

Christian Maurin, Chairman and CEO, Ondeo Nalco commented, “Ondeo Nalco’s customers understand that managing water quality and water costs can help improve their ability to compete. Water$avr technology may allow many of our customers to reduce their total cost of operations in an environmentally responsible way. Our strong global organization of sales engineers will provide customers with the knowledge they need to determine if Water$avr can add value to their operations.”

Patrick Grant, President of Water$avr division for Flexible Solutions said, “Water$avr was developed to provide a unique conservation solution to help manage water resources effectively around the world. Our distribution agreement with Ondeo Nalco allows us to build a world sales infrastructure and expand market distribution for Water$avr, in turn allowing potential customers around the world to benefit from this revolutionary technology.”

Ondeo Nalco will maintain sole distribution rights in the global mining marketplace and some parts of the municipal marketplace by achieving sales of at least $5 million annually for the next five years. As part of the agreement, Ondeo Nalco receives option rights on 10 percent of Flexible Solutions at an above-market strike price. Ondeo Nalco receives additional option rights by meeting pre-set sales targets.

Water$avr Innovative Technology

Water$avr is a patented, self-spreading water evaporation retardant product comprising safe, environmentally approved food grade compliant ingredients which biodegrade in 2 to 3 days. Water$avr achieves commercial viability by combining long-known evaporation control technology with an innovative, patent-protected self-spreading capability. The United Nation’s International Environmental Technology Center has designated Water$avr as an Environmentally Sound Technology.

Documented Results from Flexible Solutions

Organizations around the world have carried out tests documenting the proven performance of Water$avr, including:

… Anna University in Chennai, India, conducted a series of independent tests that confirmed the effectiveness of Water$avr with water evaporation savings of 40%, 35% and 25%.

… The National Engineering Research Center for Water Saving Irrigation in Yangling, Shaanxi, China organized effectiveness testing that resulted in water evaporation savings of 42%.

… Cadiz Ltd. (Sun World) in Bakersfield, California, through effectiveness experiments showed that Water$avr reduced evaporation by 27%.

Ondeo Nalco is encouraged by the early results.

Ondeo Nalco Environmental Solutions

Ondeo Nalco’s has always been guided by the desire to deliver solutions to customers that reduce the environmental impact of water treatment. The company has researched and developed several innovative technologies enabling customer to minimize impact and preserve water resources while producing more, including technologies such as STA-BR-EX³, ULTIMER³ and NALCO ACT³. These eco-efficiency innovations have been recognized with eight awards and acknowledged by the research community as breakthrough technologies.

Ondeo Nalco is the worldwide leader in water treatment and process services, with 10,000 employees working with more than 60,000 customers in 130 countries and annual revenues of $2.6 billion. Ondeo Nalco is part of SUEZ Environment Division, the world leader in environmental services with water and waste-management activities, serving 200 million people and 410,000 industrial clients worldwide.

Flexible Solutions (NASDAQ- OTC:BB- “FXSO”; FRANKFURT- “FXT) is an environmental biotechnology company focused on water and energy conservation.For more information please contact:

David Katzov or Grant Moonie
Corporate Communications
Flexible Solutions Intl. Ltd
(250) 477 9821

The Private Securities Litigation Reform Act of 1995 provides a “Safe Harbour” for forward looking statements. Certain of the statements contained herein which are not historical facts are forward looking statements 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 Commision.