FSI Announces Non-Brokered Private Placement

FSI Energy Services Inc. ("FSI") (TSX VENTURE:FSI) is pleased to announce that
it has negotiated, subject to final TSX Venture Exchange approval, a
non-brokered private placement of 4,545,446 common shares at $0.11 per common
share, for gross proceeds of approximately $500,000. The common shares issued in
connection with the private placement will be subject to a four-month hold
period from the closing date, as prescribed by the TSX Venture Exchange and
applicable securities laws.


Directors and officers of FSI will acquire approximately 50% of the common
shares under the private placement, including Richard Ball, President and CEO
and a Director, Ian Ball, CFO and Vice-President and a Director, and Perry Ball,
Vice-President, each of whom has indicated his intention to subscribe for up to
$83,333 or 757,573 common shares. Any such participation would be considered to
be a "related party transaction" as defined under Multilateral Instrument 61-101
("MI 61-101"). The transaction will be exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 as neither the fair
market value of any common shares to be issued to nor the consideration to be
paid by such persons exceeded 25% of FSI's market capitalization calculated as
of the close of trading on the TSX Venture Exchange at the time the private
placement was agreed to.


About FSI

Through its wholly owned subsidiary FSI International Services Ltd., FSI Energy
Services Inc. is a Calgary-based manufacturing and service company specializing
in customized filtration, filtration- related technologies and Brine Plants for
the energy, chemical, and water treatment industries.


Forward-looking Information Cautionary Statement

Certain information contained in this press release, including information and
statements which may contain words such as "could", "plans", "should",
"anticipates", "expect", "believe", "will", and similar expressions and
statements relating to matters that are not historical facts are forward-looking
information. Forward-looking statements are based on the opinions and estimates
of management relying on their experience at the date the statements are made,
and are subject to a variety of risks, uncertainties and other factors that
could cause actual events or results to differ materially from those anticipated
in the forward-looking statements including, but not limited to delays or
uncertainties with regulatory approvals, including that of the TSX Venture
Exchange, changes in the business environment that might impact the intended use
of proceeds and terms of the financing and changes in the intention of the
parties to subscribe to the private placement. All of the forward-looking
information contained in this press release is qualified by this cautionary
statement. There can be no assurance that the actual results or developments
anticipated by FSI, as expressed or implied by the forward-looking information,
will be realized or, even if substantially realized, that they will have the
expected consequences to or effects on FSI or its business operations. FSI
disclaims any intention or obligation to update or revise any forward-looking
information as a result of new information or future events. Readers should not
place undue reliance on forward-looking information.