EXHIBIT 99.1
PRESS RELEASE
FLEXIBLE SOLUTIONS ACQUIRING ASSETS OF DONLAR CORP. FOR $6.15 MILLION
MULTIPLE SYNERGIES BETWEEN TWO TECHNOLOGIES CREATES NEW MARKETING OPPORTUNITIES
VICTORIA, B.C., MAY 27, 2004 - FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (AMEX:
FSI, FRANKFURT: FXI), the developer and manufacturer of environmentally safe
water and energy conservation technology, today announced that it is acquring
all of the assets of Donlar Corp. (DLRC.PK), including its "green chemistry"
products for water treatment, agriculturual and industrial uses, for $6.15
million in cash.
Terms of the acqusition consist of a cash payment of $3 million at the closing
(less $50,000 already tendered) and a $3.15 million promissory note at prime
rate due one year after the close. The closing is to take place on or before
June 11, 2004.
The assets FSI acquired from Donlar include a broad portfolio of environmentally
friendly technologies and products, 52 U.S. and 139 international patents and a
65,000-square foot manufacturing plant on 40 acres of property. Donlar also has
leased corporate offices and a laboratory in Bedford Hills, Ill. The net book
value of the assets were placed at around $8 million for property, plant and
equipment, in addition to $1.7 million for intellectual property. For the year
ending Dec. 31, 2003, Donlar reported sales of $4.2 million.
"The acquisition of these established synergistic technologies broadens Flexible
Solutions' reach into additional conservation and environmental markets and will
triple the Company's annual revenue," stated President and Chief Executive
Officer Dan O'Brien. "Donlar went into Chapter 11 bankruptcy in February 2004,
creating an opportunity for FSI to initiate a clean cash transaciton for the
company's assets."
Mr. O'Brien said that there is a real opportunity for significantly growing the
existing business. "Donlar's factory is underutilizied and the manufacturing
infrastructure has the capacity for increased production," he stated. "At the
same time, there are a number of markets which are not fullly exploited for
Donlar's extensive line of products."
Mr. O'Brien noted that Donlar's assets are a natural fit with Flexible
Solutions' existing product line, as well as those under development. "Both
consist of environmentally friendly water-related technology and products for
agricultural crop enhancement, pest control and have multiple applications in
the industrial and consumer markets," he said. "In addition, the melding of
these two technologies will create opportunities for the development of even
more products."
The newly acquired products and technology includes biodegradable polymers to
prevent corrosion and scaling in water piping within the petroleum, chemical,
utility and mining industries; proteins that enhance fertilizers to improve crop
yields; additives that reduce the levels of insecticides, herbicides and
fungicides that protect plants and crops and additives for for laundry and
dishwasher detergents that prevent dirt particles from re-attaching themselves
to fabrics and kitchen ware. The products are marketed to a variety of
industries such as oil fields, water treatment, agriculture and manufacturers of
commercial products.
Donlar's global portfolio of 191 patents cover manufacturing techniques,
composition of product matter, and methods of use. Its first U.S. patent covered
the production of synthetic protein on a large scale basis, which eventually led
to the commercialization of a variety of thermal polyaspartate (TPA)
biopolymers. TPA products are beta-proteins (biopolymers) manufactured from the
common biological amino acid, L-aspartic acid. TPA is a highly active biopolymer
that is completely soluble in water. TPAs can be formulated for many uses such
as anti-scalants for hard-water environment, corrosion inhibitors, dispersants
for mining slurries, in addition to applications for detergents and
superabsorbents for baby diapers and adult incontinence products. The aggregate
market potential for such products is more than $8 billion in the U.S. and $20
billion globally, according to Chemical Market Reporter.
Flexible Solutions has developed a proprietary line of water-related products
that include Water$avr, the world's first commercially viable water evaporation
retardant for large bodies of water such as lakes and reservoirs. Water$avr
targets large water suppliers such as public utilities and industries which
require storage facilities to provide a constant supply of water. FSI currently
is developing applications to use Water$avr as a spreading mechanism to combat
mosquito-borne diseases such as West Nile Virus and Malaria and as a platform
for delivering nutrients to irrigated agricultural crops. FSI's other key
products are Heat$avr and EcoSavr. Heat$aver prevents heat loss caused by
evaporation in indoor swimming pools and spas. Its EcoSavr product, a form of
Heat$avr, targets the residential swimming pool market.
ABOUT FLEXIBLE SOLUTIONS INTERNATIONAL
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in
Victoria, British Columbia, is the developer and manufacturer of Water$avr, the
world's first commercially viable water evaporation retardant. FSI is an
environmental technology company specializing in energy and water conservation
products for drinking water, agriculture, industrial markets and swimming pools
throughout the world. Water$avr reduces evaporation by up to 30% on reservoirs,
lakes, aqueducts, irrigation canals, ponds and slow moving rivers. Heat$avr, a
"liquid blanket" evaporation retardant for the commercial swimming pool and spa
markets, also reduces humidity and lowers water heating costs, resulting in
energy savings of 15% to 40%. The Company's EcoSavr product targets the
residential swimming pool market.
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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THE WALL STREET GROUP, INC. FLEXIBLE SOLUTIONS INTERNATIONAL
32 East 57th Street Tel: (250) 477-9821 Fax: (250) 477.9912
New York, New York 10022 Email: info@flexiblesolutions.com
Tel: (212) 888-4848 Jens Biertumpel Tel: 604-682-1799