Clean Plus® Auto Care: Leadership Further Established in Denmark and Sweden

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Falken Industries Ltd - Clean Plus® Product Group today announced that it had reached agreement with a major retail hardware chain for the permanent listing of Clean Plus® products in Denmark and Sweden.

Falken Industries Ltd - Clean Plus® Product Group today announced that it had reached agreement with a major retail hardware chain for the permanent listing of Clean Plus® products in Denmark and Sweden.

Clean Plus® Distribution in Denmark has increased significantly, as a result of the success of the product group’s Danish Super Distributor. Super Distributors are successful distributors who as a result of a Strategic Alliance Agreement, obtain an exclusivity for a given market segment and activity sector(s) in a country and who as a whole, supported by substantial marketing and sales support, are largely responsible for the unprecedented success of the Clean Plus® product lines and groups. As a result the Clean Plus® product range will be available in 35 major hardware stores in Denmark and 10 in Sweden.

Helle A. Madsø, Executive Vice-President Europe stated: "Clean Plus® Auto Care and Handyman® products are already available in stores. Furthermore this has been ever so consistent with our Scandinavian policy of providing top quality products targeted for the chosen market segment. The high quality and consistency of Clean Plus® products was paramount to the chain’s selection of Clean Plus® over all other competitors in a heated and difficult negotiation."

Andrew Eakin, New Business Development Officer, stated: “This Agreement follows a successful and constant support provided to our Super Distributor and is the result of our thorough immixing into the Scandinavian market and numerous successful market studies. We fully expected that this would quickly lead to an increase in what is already a material presence of the Clean Plus® brand in Denmark and Sweden. In all event, the Clean Plus® Auto Care “Premium” line wherever tested, enjoyed either the quality or price advantage and in many instances both.”

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 permanently list the Clean Plus® product range. Clean Plus® marketing and merchandizing support for its distribution network is legendary.”

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 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.    

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:

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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