Falken Industries Ltd – Clean Plus® Announces a 43% Increase in 1Q Sales; Entrenches “Greening of the Business” to All Product Lines

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Falken Industries Ltd announced today a material focus and expansion of its “Greening of the Business” philosophy to all Clean Plus® products and lines.

Falken Industries Ltd announced today a material focus and expansion of its “Greening of the Business” philosophy to all Clean Plus® products and lines.

In contrast to many of its competitors whose corporate and environmental interests seem eternally entrenched on opposite sides of the eco-fence, and little more than a cost and a bother, Falken Industries Ltd announced that its green practices, in great part responsible for the reported 43% increase in Clean Plus® sales in the first quarter of 2006 and for an unprecedented increase in business interest, were now permanently entrenched in its business strategies.

Rishard Lebbe, Ast Vice President and Communications Officer stated : “Green practices are good business ; an opportunity for innovation, a route for money-saving efficiencies – and a big selling point with consumers. “

Andrew Eakin, New Business Development Officer added : “Clean Plus® professional hand wipes are a clear example of Clean Plus® devotion to the environment. Standing alone amongst its competitors, Clean Plus® High Performance professional hand wipes are entirely Bio-Degradable as that term is authorized under current legislation.”

Never losing a stroke, Falken has continuously pursued the steady business of generating contracts rather than attention. Nevertheless, Falken is taking several steps to prioritize in the process, the promotion of its environmental goals. As noted by Helle Madso, President : “We have taken a lifecycle approach to capital investments – we look at the total costs, including ongoing costs, like energy. While sometime our upfront costs are higher, our ongoing costs are much lower.”

The Clean Plus® success story has enabled the product group to take a long term approach, and there are plenty of green options to choose from. For example Falken employs videoconferencing as an adjunct to face to face meetings, and it is taking a hard look at everything from the packaging of its products to the paint on its filing cabinets, tapping corn-based plastics, recycled paper and low emission powder coating.

Pascal Maillach, Vice President Product Engineering concluded : “One of the biggest booms of doing green business has been a material increase in our efficiencies. If you do things more efficiently, you use fewer resources, that translates to less stress on the planet and more money in the bank for our near 3.000 shareholders.”

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.


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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