FFM

Formation Fluid Management Inc. (the "Company") (TSX VENTURE: FFM) is pleased to announce the appointment of Mohammed Ibrahim as Lead Process Engineer of its operating subsidiary Formation Fluid Technology ("FFT", formerly Produced Water Solutions Inc.). Mohammed brings with him over 15 years of experience in the design, construction and commissioning of industrial and municipal water and wastewater treatment, and reverse osmosis water systems with capacities from 500 m(3)/day to 500,000 m(3)/day. He holds a Masters of Science in Environmental Engineering and a Bachelor of Science in Chemical Engineering. Mohammed will act as leader of our research and development team, whose mandate is to introduce ever improving technology into our total water management program. "We are very fortunate to add an engineer to our team whose training and experience so closely match our Company's needs," said Al Radford, CEO of FFM. "Mohammed's expertise and commitment to teamwork make him a great fit and a welcome asset to the Formation Fluids Group. His daily presence at our Sylvan Location puts him at the pulse of the process and the management team."

The Company is also pleased to announce that it has opened a sales office in Calgary, Alberta at Bow Valley Square, Suite 700, 250-5th Ave SW, T2P 2V7, telephone 403-538-5480. The Company has also opened a new head office at #14 Thevenaz Industrial Trail, Sylvan Lake, Alberta, T4S 2J5 telephone 403-887-8874, info@fftinc.ca. The Sylvan Lake office will serve as the administration office for the Company and the main operational center for FFT.

Formation Fluids is executing on its business plan by working to complete the engineering of its first commercial water treatment system. Design aspects are expected to be concluded in late October. A pre-qualification document is being prepared for presentation to manufacturing interests and construction will commence following selection of the manufacturer.

On behalf of the Board of Directors,

Al Radford, President & CEO

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward- looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licences and leases in the conduct of its business, reliance on key personnel, market acceptance of the Company's products and services, the need to protect intellectual property and other proprietary rights, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, fluctuations in the cost of materials, competition, environmental matters, and insurance or lack thereof.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF DOBHAI AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE DOBHAI MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Formation Fluid Management Inc. Wolf Fiedler Senior Vice President 403 887-8874 403 887-8804 (FAX) wfiedler@fftinc.ca