Falken Industries Ltd
OTC Bulletin Board : FLKI

Falken Industries Ltd

March 26, 2010 12:13 ET

Falken Industries Ltd: 4Q Revenues and Margins Soar-2009 Year End Results a Record

4th Q revenues and margins increased substantially as expected and previously announced, to cap out a record year. 2010 is projected to surpass those results by 30% with a significant further increase in global market share.

TRENTON, NEW JERSEY--(Marketwire - March 26, 2010) - Falken Industries (OTCBB:FLKI) announced today that year end results were consistent with the solid increase projected at the start of the third quarter for sales of its product concepts globally, Net revenues for the year ended December 31, 2009 increased 83% with gross operating margins soaring 11%.

2010 is also predicted to improve global market share in a meaningful way. FLKI product concepts have been quickly filling the voids created by over priced and over extended competitors. FLKI distributors report a substantial increase in customer growth, demand and inquiries. Several new products are being released throughout the year and new distributors are being appointed.

"Numbers are not everything" said Manuel Garcia Communications Officer. The evolution of the company's distribution network who take our product conceptions to market is significantly improved by FLKI's extraordinary marketing and sales support and the flow down to consumers has kept retail prices at a comfortable margin while maintaining a large price advantage over the competition.

"We continue to believe that the emphasis of distributors has to stay on market share. We have achieved our objectives for capacity, production, quality, and logistic excellence. We consider our price advantage a material benefit for our current strategy of enhancing market share and are very aware of the substantial possibility for us to enhance margins and profits through eventual price increases which would still leave our competition significantly more expensive." added Garcia.

"We have excelled in containing our cost, hedging our currency risk and providing cover for producers and distributors of our concepts. Our raw material procurement has permitted us an enviable position and realized production costs savings of up to 30% over our competitors without impacting on margins" concluded Garcia.

Responding to a press inquiry on the performance of FLKI publicly traded securities, Garcia responded, "our stock is unknown to the financial markets, and seriously undervalued at present levels it is far from reflecting the company's outstanding potential. Management's focus nevertheless will remain on the fundamentals of FLKI's business as a conceiver of top consumer, professional and industrial products and I have no doubt that the securities industry will eventually catch up."

About Falken Industries Ltd:
Falken Industries Ltd (OTCBB:FLKI) is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe 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.

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