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Environmental Protection & Preservation

Flexible Solutions Awarded Contract to Reduce Evaporation on Libyan Reservoirs

Today, Flexible Solutions International, Inc announced that its WaterSavr evaporation reduction technology will be deployed at two Libyan reservoirs used for storing drinking water. FSI is the developer and manufacturer of cost-effective, environmentally safe, biodegradable, and patented water technologies. FSI's water evaporation control products are used to reduce water loss in arid climates, reduce energy loss from public and private swimming pools and cause spreading of desired particles across water surfaces. The Company's bio-polymers are utilized in agricultural nutrient availability, oil industry scale prevention and as suspension agents in the detergent industry.

FSI has entered into a contract with the Great Man Made River Authority (GMRA) of Libya. The GMRA has purchased WaterSavr for use on two of the GMRA reservoirs. WaterSavr will be applied to 320 acres (130 hectares) of surface reservoir water for an initial period of nine months. The contract is valued at over $100,000 US and payment has been guaranteed by an irrevocable letter of credit. The application of WaterSavr on these reservoirs has the potential to save over 570 acre-feet of water each year (700,000 cubic meters). The project is scheduled to begin in June of 2006 and an agreement in principle has been reached for supplying product for all five of the GMRA's reservoirs upon attaining certain milestones by the end of the project.

"GMRA and the country of Libya are leaders in water conservation and management technologies in North Africa," states Daniel B. O'Brien, CEO. "We are optimistic that this initial contract will be expanded to all reservoirs controlled by GMRA after the current nine-month period. We also hope that a successful North African evaporation control project, operated by local water professionals, will lead neighbor countries to begin their own projects to save the massive amounts of water lost from reservoirs through evaporation." Mr. O'Brien continues, "North Africa, with its high annual evaporation and limited water resources, could become a significant market for WaterSavr as the success of this project becomes known."

WaterSavr is an environmentally friendly, patented, evaporation reduction powder that self spreads to create a one molecule thin layer on the water surface. WaterSavr has been proven effective in trials conducted around the world that have resulted in average water savings of 30%. WaterSavr has been certified by the United Nations Environmental Program, the National Sanitation Foundation (NSF) and meets drinking water standards of the America National Standard Institute (ANSI).

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