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Letter of Introduction to the Company from Dan O'Brien, President

Flexible Solutions International Inc. is an environmental technology company engaged in conserving energy and water using patented evaporation control products. At the core of the Company is the desire to make a positive contribution to the earth by attempting to conserve and reduce energy, waste, and water consumption.

Flexible Solutions was founded in 1989 with a single product designed to conserve water for the swimming pool market. The film-forming monolayer technology, invented by chemist and life-time conservationist, Dr. Robert O'Brien in 1985, remains unchallenged in its effectiveness.

Twenty years later, our Company has successfully commercialized two energy conservation products for the pool industry. One is Heatsavr™ - a solar pool cover which reduces fuel costs for commercial pools by 15 - 40%. The other is Ecosavr™ (the same liquid pool cover in a 30 day dispenser) designed for the residential pool market. Both products are patent protected.

A third significant product in water retardant technology was invented for use in areas where fresh water needs to be conserved. This film-forming evaporation control blanket has the same active ingredients as Heatsavr™, which saves fresh water normally lost through evaporation.

Watersavr™, patented worldwide, is in dry powder form, and uses ionic repulsion to spread its ingredients. It is inexpensive and suitable for most storage methods of water: reservoirs, canals, irrigation ponds, and rice paddies. Use of Watersavr™ will positively impact existing available water storage and all consumers. A 30% to 50% reduction in evaporation losses are achievable for drinking water preservation.

Furthermore, research shows that Watersavr™ is beneficial to plants of all kinds, keeping them healthier while reducing water usage, and also increases germination speed.

2002 and into the future

We intend to continue expansion of our customer base for the liquid pool blanket, in both commercial and residential pools. Our determination to sell product only if there is an opportunity to save our customers money and water has remained unchanged from our early days. This level of integrity with regard to our customers and within our own operations has earned us consistent respect from our associates and customers.

The Company has also begun marketing Watersavr™ in three distinct sectors: home garden and lawn care; agribusiness; and drinking water conservation.

To date, global interest in Watersavr™ has been encouraging, with several countries battling drought conditions committed to significant purchases. Watersavr will be positioned strategically in the marketplace to capitalize on the growing need for more water.

We have organized the manufacture, distribution and sales mechanisms for world-wide growth with this product, whose market size is estimated at 6 to 8 $Billion annually.

The Heatsavr™ and Watersavr™ products have the capacity to save billions of gallons of water in dry areas throughout the world, truly earning their names, and reflecting our motto, "Cover and Conserve".



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