Clean Plus® Brand Expansion in Russia Succeeds

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The product and brand conceptions of Falken Industries Ltd (OTC : FLKI) are globally renowned. Today's report by the Clean Plus® Product Group of the brand's success in Russia, the world's largest country at 17,075,200 underlines the viability of the strategic decision dating back more than 4 years.

The Clean Plus® success in Russia opens a lot more opportunities and options for expansion in the future of our more than 160 active product and brand concepts. We believed that the European

The Clean Plus® Product Group's brand - an FLKI conception - came in at a very ideal time. Russia is currently in the exciting period of rebirth and reinvention and is enjoying an impressive growth in its economy. Most importantly, Russia is one of today's fastest growing auto markets. Its new-car market started to grow by 28%, a total of $1.8 billion in sales. Experts even predict that Russia will surpass Germany as Europe's biggest car market.

The Clean Plus® brand which was conceived and created by FLKI in 1997 is a prime example of FLKI's ability to conceive and develop not only products but brands with impact and built in success for brand managers and distributors everywhere.

Many foreign auto manufacturers have been rushing to set-up their manufacturing plants at St. Petersburg. Big names in the automotive industry already have their presence in Russia such as Ford, General Motors and Toyota while others like Nissan and Suzuki are setting-up their assembly plants worth $200 and 115 million respectively. Mitsubishi and Hyundai are currently under negotiations to build their plants as well.

The proximity to Western Europe and the Tax Decree 166, which exempts automakers from paying tariffs on imported parts are the reasons why foreign auto manufacturers are attracted to St. Petersburg, which is rapidly transforming to become Russia's auto manufacturing epicenter.    

As a result, the booming auto manufacturing sector has influenced the purchasing decisions of the growing Russian middle class, with a population of 8 million in 2000 to 55 million in 2007. Russians are now buying foreign models to replace their old, outdated domestic cars.

Naturally, when there is a surge of automobile purchases, Clean Plus® auto care products - whose quality and price standards are studied to the Russian market, providing high end quality and price points substantially below its competitors - will also be in demand. When management at the Clean Plus® Product Group saw this opportunity, it decided to expand to Russia, build a strong presence in its automotive aftermarket and strategically position the Clean Plus® brand early in the game to acquire a large market share without the usual competition, thus, gaining almost absolute brand loyalty.

"The Clean Plus® success in Russia opens a lot more opportunities and options for expansion in the future of our more than 160 active product and brand concepts. We believed that the European "Premium" auto care line appealed to the Russian market that's why the sales of the Clean Plus® Product Group did very well," said Manuel Garcia FLKI Communication Officer.

With this success, FLKI reported a 27.7% increase in the overall revenues of the last second quarter of this year and expects a 50% growth rate in the next quarter.

About Falken Industries, Ltd. (OTC: FLKI)
Falken Industries, Ltd. is a diversified industrial conglomerate that operates in Chemicals, Wet Wipes and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.

SAFE HARBOR STATEMENT: This news release contains "forward-looking statements" made pursuant to the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." Such statements are subject to risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that our products may not achieve customer acceptance or perform as intended, that we may be unable to obtain necessary financing to continue operations and development, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements.

Manuel Garcia
Shareholder Relations: 1609 357 0316

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