NEWS RELEASE Jan. 23 2001

FLEXIBLE SOLUTIONS INTERNATIONAL INC.

NASDAQ – OTC BB “FXSO”

NEW FINANCING AGREEMENT

Flexible Solutions International Inc. is pleased to announce an agreement for $ 5 million in new financing in the form of a convertible debenture. The debenture carries an interest rate of 8% over a one year term. It can be converted into common stock of Flexible Solutions or repaid from proceeds of a future public offering which may or may not take place, at the discretion of the Company. Flexible Solutions will gain access to the proceeds of this financing once an SB-2 document has been filed with the Securities Exchange Commission for a maximum financing of $ 25 million. The buyer of the debenture is generating the SB-2 document with the assistance of Flexible Solutions. Management intends to utilize the proceeds of the debenture to expand the Company’s current production capacity; engage in further research and new product development; expand the Company’s sales and marketing staff; and to provide additional working capital. Dan O’Brien, President of Flexible Solutions, states that he expects that this capital infusion will greatly accelerate the introduction and sales of the Company’s energy and water conservation products. For more information please contact: