Clean Plus® Auto Care Confirms Major Distribution Relationship in Scandinavia – Signs Super Distribution Platform for Denmark

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FALKEN INDUSTRIES LTD – Clean Plus® Product Group today announced the signing of a Strategic Alliance Agreement, establishing a Super Distribution Exclusive Platform in Denmark for its consumer Clean Plus® Auto Care “Premium” product line.

Falken Industries Ltd – Clean Plus® Product Group today announced the signing of a Strategic Alliance Agreement, establishing a Super Distribution Exclusive Platform in Denmark for its consumer Clean Plus® Auto Care “Premium” product line.

Rishard Lebbe, Assistant Vice President – Communications stated : “The signature of this latest Strategic Alliance Agreement sets a firm presence for the Clean Plus® “Premium” line of Auto Care Products. This new Super Distributor, brings thirty years of solid distribution experience in the automobile market segment and will cover retailers and hypermarkets

The Clean Plus® consumer line-up will replace a major and very popular US brand in the distributor’s product offer.

The new Clean Plus® Handyman® product range, specifically targeted to the Do It Yourself sector is also represented by the Super Distributor in the market segment and activity sector(s) consented.

Helle A. Madsø, Executive Vice President - Europe, stated: “We recently approved the further appointment of a number of new Super Distribution Platforms in various markets. This choice was mandated by increased demand for Clean Plus® products and the necessity of a local logistical presence in progressing markets. This new Super Distribution platform, as with all, will provide an additional base for further marketing and merchandising events in Denmark where Clean Plus® leading high quality and low prices is already accepted and well recognized.

Andrew Eakin, New Business Development Officer stated: “The objectively tested higher quality of Clean Plus® wipes, liquids and sprays was conclusive in the selection process. With Clean Plus® Auto Care “Premium” our new Super Distributor presents a product offering beating all leading high end brands present in Scandinavia, at prices 30-40% lower.

The Clean Plus® product group offers 12 product collections in the Clean Plus® consumer and professional lineup.

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 - through which it ensures the development and commercialization of specialty cleaning and maintenance products for consumer and industrial applications.

Through its affiliate in France, Falken also pursues the development of its non-competing private label business which contributes materially to economies of scale in raw materials and research and development costs.

Clean Plus® Auto Care at all levels, consumer and professional, is a recognized success by both clients and competitors due to its unique market positioning, high quality, and price advantage. Clean Plus® also targets the important DIY (Do It Yourself) market segment through its well received and quickly expanding Handyman® line of products.

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. In the absence of Super Distribution, Falken will sell to Open or Export Distributors directly.

Currently, the Clean Plus® and related product lines are sold throughout Europe and in many areas of the world through Export. The Company recently completed its second product introduction in the United States and will commence appointing distributors there as of 2006. The Company is present in seven primary market segments, and its clients include, for example : 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 covering most other market segments. The Company regularly sells products to government agencies and a large number of national and multinational firms.    

All products are sold in 11 European 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; US The Americas, and C Canada and the Commonwealth. Languages and editions are added as the Company expands its Super Distribution network.

The Clean Plus® line of products is divided into 2 segments, the consumer line and the professional line, each with product group and market segment categories.

Disclosure Safe Harbor Provisions:

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.

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Rishard Lebbe
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