Second Quarter, 2008 Financials Conference Call Speech

As Presented by Dan O’Brien, President and CEO, on August 15th, 2008

VICTORIA, BC–(EMWNews – August 18, 2008) – Flexible Solutions International Inc. (AMEX: FSI) (FRANKFURT: FXT)

Welcome to the FSI conference call for Q2, 2008. I will begin with the

financial results:

This record 2nd quarter follows an even larger record 1st quarter and

together they made the best first half FSI has ever attained. Increased

revenue combined with careful cost controls gave us excellent results.

* Sales increased to $2.92 million, up 36%, compared to sales of $2.14

million in Q2, 07.

* Sales for the 6 months were $6.4 million, up 45% from $4.4 million in the

first half of 2007.

* Net income for Q2 increased to $348 thousand from a loss of $70 thousand.

By shares, Q2 had a profit of 2 cents up from a loss of 1.

* Net income for the 6 months increased to $658 thousand from a loss of $95

thousand in 07. First half 08 had a 5 cent per share profit compared to a 1

cent loss in the 07 period.

* Operating cash flow in the first half increased 214% to 1.38 million from

440 thousand. The details of how to reconcile operating cash flow with GAAP

accounting are shown in our news releases and SEC filings; we subtract

depreciation, option expenses and capital expenses for building the new

factory that are arbitrarily assigned to operations by GAAP.

We are very pleased to report that the net loss of last year has become a

net profit in 2008. We are even more pleased with the dramatic increase in

cash flow that will allow us to increase inventory to meet higher sales,

increase research and accelerate sales efforts to ensure higher revenue and

improved products for the future.

I would like to speak about individual divisions and projects.

Biomass Factory: The plant is scheduled to begin operations in late 2008

and will de-link our NCS division from oil prices and allow us to maintain

margins, reduce currency risk and position our products as renewable

resource based. Most of the equipment has arrived on site and all of it has

been ordered. We are on schedule and on budget.

Swimming pool division: Sales were up slightly in the 3- and 6-month

periods. We are satisfied that the change of personnel in the division last

year was a correct decision and we believe that flat sales in a falling

economy and very poor real estate market is a good result compared to many

pool product companies. We are putting plans in place to begin increasing

revenue next year.

Watersavr: Q2 saw a few very small sales. However, interest in Australia is

increasing now that the drought has returned and we are advancing in Asia

and several Mediterranean countries. The disappointment is the US. Our

initiative is stalled by the slowness of Los Angeles water department

personnel to obtain a permit for a trial from state lands. The permit plus

a successful trial would lead to a contract to treat Owens Lake in CA and

allow us to market effectively to the other water starved areas of the

South and Southwest. We are applying all the pressure we can to the

situation and expect to prevail eventually.

Watersavr BTI: Our mosquito control product formula has been finalized and

is going through more EPA approval. Concurrently, the methods of production

scale-up are being designed and tested. We are not able to comment further

at this time.

NanoChem division: Oil field: Sales were up in this market area in volume

and total revenue. After the end of the quarter our sales team officially

introduced our new, higher temperature polyaspartates and versions that can

be detected in oil streams to aid operations. Our oilfield service

customers are now able to assess our improved products for fields that are

not feasible with our standard products.

Detergent: Sales to small formulators grew to accommodate increased

interest in “green” products. Our major project to sell to one of the 4

majors in the field is progressing but needs trial production from our

sugar based factory to start the next step which is confirmation that sugar

based polyaspartic acid is equivalent to the oil based material.

Agriculture: The increase in fertilizer and crop prices had positive

effects on sales to growers and distributors. Sales were up substantially

from a small base and management is focusing on deciding how to derive a

significant long term benefit from this market. We have rebranded our house

product to “X10D” from Amisorb and opened a dedicated website at

www.extendyourcrop.com to educate growers on the extra profit available

when X10D is added to regular fertilizer programs. In addition, X10D was

sold direct to growers in several new areas of the US and Canada. The

results of the 2008 growing season should allow us to increase direct sales

substantially in 09. The 350 million acres of NAFTA cropland that could use

up to 14 dollars of X10D per acre are a fertile market that we want a

larger share of.

To conclude, we are confident that we are allocating resources correctly,

that our decision to build the Alberta plant was right and necessary and

that we are well placed to increase sales and profits both short and long

term. We feel that the second half of the year will be strong compared to

the same period in 2007 and note that our first 2 quarters of 2008 had

revenue only 1 million less than full year 2007.

About Flexible Solutions International

Flexible Solutions International Inc. (www.flexiblesolutions.com), based in

Victoria, British Columbia, is an environmental technology company

specializing in energy and water conservation products for drinking water,

agriculture, industrial markets and swimming pools throughout the world.

FSI is the developer and manufacturer of WaterSavr, the world’s first

commercially viable water evaporation retardant. WaterSavr reduces

evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation

canals, ponds and slow moving rivers. Heatsavr, a “liquid blanket”

evaporation retardant for the commercial swimming pool and spa markets,

reduces energy costs by 15% to 40% and, further results in reduced indoor

humidity. The Company’s Ecosavr product targets the residential swimming

pool market. The Company’s NanoChem Solutions, Inc. subsidiary specializes

in environmentally friendly, green chemistry, water-soluble products

utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are

manufactured from the common biological amino acid, L-aspartic acid.

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.

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To find out more information about Flexible Solutions and our products

please visit www.flexiblesolutions.com.

Flexible Solutions International

615 Discovery Street

Victoria, B.C.

V8T 5G4 CANADA