Falken Industries Ltd
OTC Bulletin Board : FLKI

Falken Industries Ltd

August 19, 2011 15:35 ET

FALKEN and AZTEX to Work Together to Create the Next Generation Biomaterials

Aztex Will Increase Its Stake as a Falken Shareholder Through Open Market Purchases

TRENTON, NEW JERSEY--(Marketwire - Aug. 19, 2011) - Falken Industries Ltd. (OTCBB:FLKI) announced today that the Company has entered into a licensing agreement with biotechnology leader Aztex Ltd.

Falken has successfully negotiated a license to use Aztex' powerful technology to accelerate its scientific research and product development, along with an option to commercialize the resulting biomaterials in the textile and bio-health fields.

Under the agreement, Aztex will provide Falken with its proprietary genetic engineering assets and expertise to enable Falken to significantly accelerate its product development. In addition to providing the customized assets and technological know-how, Aztex has granted Falken an exclusive commercial license to use the technology in the textile and bio-health markets. Aztex has agreed that Falken will have exclusive commercial rights to use Aztex proprietary assets in conjunction with assets previously licensed from third parties or developed by Falken's internal research. Aztex will be creating customized raw materials for Falken's use in its development of polymers and technical textiles targeting its leading position in impregnated wet wipes.

"Aztex' proprietary technologies are extremely powerful resources which enable very precise application targeting," said Falken's Communication Officer Manuel Garcia. "We are convinced that this technology is the key to creating advanced new products and materials. We believe that when these customized assets are delivered by Aztex in the coming weeks, the technology will enable us to rapidly and precisely target specific areas for the creation of stronger fibers, advanced textiles and new bio-materials for use in our professional and industrial lines."

"Falken existing technologies and products have been recognized as revolutionary in engineering circles for various military and civil defense applications, including disinfection, and bio-health products and systems" said Garcia.

"This latest development is expected to accelerate our development of advanced materials and advance Falken's competitive advantage in the field of bio-materials. The combination of Aztex's revolutionary technology and know-how, coupled with Falken's proprietary bio-materials technology and know-how, will create synergies that will benefit both companies.

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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