Ondeo Nalco Co. and Flexible Solutions Intl. sign global distribution agreement for Water$avr

Sept. 5, 2002
Ondeo Nalco Company and Flexible Solutions Intl Inc. have signed a global distribution agreement for Water$avr, a water evaporation retardant.

Sept. 5, 2002 -- Ondeo Nalco Company and Flexible Solutions Intl Inc. have signed a global distribution agreement for Water$avr, a water evaporation retardant.

This solution could allow water intensive industries and municipalities to manage water resources in a safe and effective way, while reducing operation costs. Water$avr will be exclusively supplied and distributed worldwide through Ondeo Nalco for the mining market and some parts of the municipal market, and in other markets with non-exclusive distribution rights.

Water$avr combines long-known evaporation control technology with an innovative, patent-protected self-spreading capability that makes it economically viable. Water$avr was recently developed to answer the growing need for water-intensive industries and municipalities to manage water resources effectively while preserving the environment. According to independent testing carried out around the world between 2001 and 2002, Water$avr may allow users to reduce water evaporation by up to 40%.

The United Nations' International Environmental Technology Center has recently designated Water$avr as an Environmentally Sound Technology. Water$avr uses food-grade chemicals and has no negative impact on the oxygen level, temperature or aquatic life in treated sources of water. It may be used safely and effectively to preserve water resources including raw water supplies, reservoirs, canals, lakes, ponds and recreation areas.

Christian Maurin, Chairman and CEO, Ondeo Nalco commented, "Ondeo Nalco's customers understand that managing water quality and water costs can help improve their ability to compete. Water$avr technology may allow many of our customers to reduce their total cost of operations in an environmentally responsible way. Our strong global organization of sales engineers will provide customers with the knowledge they need to determine if Water$avr can add value to their operations."

Patrick Grant, President of Water$avr division for Flexible Solutions said, "Water$avr was developed to provide a unique conservation solution to help manage water resources effectively around the world. Our distribution agreement with Ondeo Nalco allows us to build a world sales infrastructure and expand market distribution for Water$avr, in turn allowing potential customers around the world to benefit from this revolutionary technology."

The market potential for Water$avr is US$2 billion in North America and up to US$8 billion globally.

Water$avr Technology
Water$avr is a solution comprising fatty alcohol, the only environmental and effective way to retard water evaporation. Fatty alcohols have been experimented with since the 1950s as a successful water evaporation control method, but they did not present an economical solution because of spreading method concerns.

Water$avr is a patented solution that combines the efficiency of fatty alcohol as water evaporation retardant with the process of ionic dissolution that allows the solutions to self-spread while in contact with water. When Water$avr contacts still or slow-moving water, it self-spreads to form a mono-layer thickness film on top of the water surface that retards water evaporation without harming the environment.

Documented Resutls from Flexible Solutions
Organizations around the world have carried out tests showing the proven performance of Water$avr, including:

* Anna University in Chennai, India, conducted a series of independent tests that confirmed the effectiveness of Water$avr with water evaporation savings of 40%, 35% and 25%.
* The National Engineering Research Center for Water Saving Irrigation in Yangling, Shaanxi, China organized effectiveness testing that resulted in water evaporation savings of 42%.
* Cadiz Ltd. (Sun World) in Bakersfield, California, through effectiveness experiments showed that Water$avr reduced evaporation by 27%.

Ondeo Nalco is encouraged by the early results.

Ondeo Nalco Environmental Solutions
Ondeo Nalco's has always been guided by the desire to deliver solutions to customers that reduce the environmental impact of water treatment. The company has researched and developed several innovative technologies enabling customers to minimize impact and preserve water resources while increasing production, including technologies such as STA-BR-EX, ULTIMER and NALCO ACT. These eco-efficiency innovations have been recognized with eight awards and acknowledged by the research community as breakthrough technologies.

About Ondeo Nalco and Flexible Solutions International

Ondeo Nalco is a provider in water treatment and process services, with 10,000 employees working with more than 60,000 customers in 130 countries and annual revenues of $2.6 billion. Ondeo Nalco is part of SUEZ Environment Division, a provider of environmental services with water and waste-management activities, serving 200 million people and 410,000 industrial clients worldwide.

Flexible Solutions is an environmental technology company focused on water and energy conservation. Water$avr is a safe, effective evaporation reduction powder that can reduce water loss by up to 42%.

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