Clean Plus® Auto Care Distribution Channels Further Increased in Canada

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Falken Industries Ltd - Clean Plus® Product Group today announced that it has reached an agreement with a major Distributor in Canada for the exclusive distribution of all Clean Plus® products. The Strategic Alliance Agreement covers the entire territory of Canada.

Falken Industries Ltd - Clean Plus® Product Group today announced that it has reached an agreement with a major Distributor in Canada for the exclusive distribution of all Clean Plus® products. The Strategic Alliance Agreement covers the entire territory of Canada.

Clean Plus® distribution in Canada is expected to see a significant increase as a result of the success of the product group’s extensive testing and as a consequence of the newly appointed Canadian 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 worldwide.

Helle Madso, Executive Vice-President Europe of Falken Industries Ltd. stated : ”We are excited about our new relationship and Super Distributor, and thanks to their professionalism and enthusiasm we can look forward to expanding the reach of our brand, and to the growing exposure of the Clean Plus® product line into key markets!”

A solid 15 years of experience in the automotive aftermarket has made the new Canadian Super Distributor one of the biggest players in the Canadian market. A steady stream of positive feedback was received after a number of successful initial test marketing campaigns of Clean Plus® products. Clean Plus® Auto Care and Handyman® products will be available in many large gas station chains shortly. Plans currently in negotiation include the future introduction of the Clean Plus® product group into large auto parts distribution networks and large hardware chains all within a span of a few months.

Andrew Eakin, New Business Development Officer, stated: “This Agreement as all similar agreements throughout the world, is the product of our constant support to Super Distributors. We fully expected that this would be the beginning of a material presence for the Clean Plus® brand into the Canadian market. In all events, the Clean Plus® Auto Care “Premium” line in Canada and wherever tested, enjoyed either the quality or price advantage and in many instances both.”

He also went on to say: “We feel that our extensive communication and marketing campaigns coupled to unique product support and implantation strategies were vital to this major distributor’s election to forego other brands in favor of the Clean Plus® product range.”

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.

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 in a market, 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 late 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.

CONTACT INFORMATION

Rishard Lebbe

FALKEN INDUSTRIES LTD.

http://www.cleanplus.com
+33145421916

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Rishard Lebbe