Clean Plus® Auto Care Leadership Further Established in Scandinavia

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FALKEN INDUSTRIES LTD � Clean Plus® Product Group today announced the establishment of a significant additional presence in Scandinavia for its Clean Plus® Auto Care product line.

FALKEN INDUSTRIES LTD – Clean Plus® Product Group today announced the establishment of a significant additional presence in Scandinavia for its Clean Plus® Auto Care product line.

Rishard Lebbe, Assistant Vice President – Communications stated, “This results of a strategic affiliation with a large and dominant group operating some 120 hyper markets, each approximately two hundred thousand (200,000) ft² in size. This well known and respected chain chose Clean Plus® Auto Care over all other and often better known brands, as its primary brand for auto care products aimed at the general consumers and auto enthusiasts. Clean Plus® products will be integrated at all stores over the coming year. The new Handyman® product range, specifically targeted to the Do It Yourself sector is also under consideration. These events confirm our belief that the entire Clean Plus® range will continue to enhance and expand its market share and that our implantation strategies are on point.”

The Strategic Alliance and permanent listing agreement will provide a solid base for marketing and merchandising events in Scandinavia where Clean Plus® high quality and low prices are in constant demand. It is expected that this alliance will contribute in the first year, sales of some $400,000 Dollars.

Helle Madsø, Executive Vice President – Europe stated: “While management believes these projections to be conservative, Scandinavia is a high end quality but relatively small market. Further expansion of the Clean Plus® line will likely result in more loss of market share for our competitors, many of which are larger better known companies. Clean Plus® believes that it can maintain its product engineering and design edge and as a result ensure its consistent higher quality and lower prices even against larger companies – as it has consistently done for the last few years.”

Pascal Maillach, Vice President, Product Engineering stated: “The higher quality of Clean Plus® wipes, liquids and sprays was key in the selection process and for the Clean Plus® designation in the offered range as “core” i.e. the ‘preferred brand’.”

John Carricaburu, Assistant Vice President - Operational Marketing added: “We feel that our extensive communication and marketing campaigns coupled to unique product support and implantation strategies were vital for the final decision to list the Clean Plus® product range. Clean Plus® marketing and merchandizing support for its distribution chain is legendry.”

About Falken Industries LTD:

Falken Industries Ltd. is a leading American manufacturer of innovative wet wipe products with production facilities in France. Its core product group is the leading Clean Plus® brand of high performance products, http://www.cleanplus.com through which it ensures the development and commercialization of specialty cleaning and maintenance products for consumer and industrial applications.

Through its wholly owned subsidiary in St Pierre les ElBeuf, Falken also pursues the development of its non-competing private label business which contributes materially to economies of scale in raw materials costs.

Clean Plus® Auto Care® is a recognized success by both clients and competitors due to its unique market positioning, high quality, and price advantage.

Distribution is ensured through Falken’s unique “Super Distribution” concept. Super Distribution Agreements provide large and successful distributors with a contractual exclusivity for a given geographic area and market segment.

Currently, the Clean Plus® and related product lines are sold throughout Europe in approximately 5,000 retail locations. The products are currently sold in France, Norway, Denmark, Finland, Sweden, The Netherlands, Austria, Germany, Switzerland, Luxembourg, Belgium, Cyprus, Italy, Spain, Portugal, Greece, Hungary, South Africa and Turkey. The Company’s clients include: the largest distribution networks in the automotive sector, major gasoline station chains, one of the most exclusive retail auto aftermarket chains in Europe with 260 stores in six European nations; and a distribution network in the cleaning and health sectors in France. The Company regularly sells products to government agencies and a large number of national and multinational firms.    

All products are sold in 11 languages and are manufactured to service the whole of the European market. Consumer products are manufactured in different editions, i.e., NE Northern European; CE Central Europe; SE Southern Europe; and the Americas.

The Clean Plus® line of products is divided into two segments, the consumer line and the professional line.

Disclosure:

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made, to the extent relevant, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact:

Rishard Lebbe

FALKEN INDUSTRIES LTD.

http://www.cleanplus.com
+33145421916

rlebbe@falkenltd.com

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Rishard Lebbe
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