Falken Industries Ltd
OTC Bulletin Board : FLKI

Falken Industries Ltd

July 31, 2011 16:00 ET

Falken Industries Ltd Expands Production Capacity to Meet Substantial Increase in Demand

TRENTON, NEW JERSEY--(Marketwire - July 31, 2011) - Falken Industries Ltd (OTCBB:FLKI) buttressed by strong second quarter sales and increasing demand for its product conceptions is expanding its proprietary product research, development and production capacity in Europe to provide a sustainable competitive advantage for its growing customer base. This expansion is generally in response to rapidly growing demand in the Europe and in the BRIC with the notable presence of growing interest by governments, military and transit authorities, the last of which was the French RATP (French Subway systems).

Manuel Garcia, communications officer, said, "Our disinfectant, cleansing, anti-graffiti and industrial wipe technologies provides our customers, and notably the military, airlines and transit operators with unique benefits to improve operational efficiency and reduce costs. This investment virtually doubles our European capacity for product research and development and for production. Demand for our product conceptions has been increasing rapidly and adding a production new line will position Falken to better serve our growing global end-user or distribution customer base."

For manufacturers and conditioners, Falken's technology and supply chain management lowers total logistic costs, improves material handling, increases customers' run-times, generates higher product value due to fewer material handling and low reject rates, creates less dust and contaminate generation during the production process and delivers products with high quality and consistent high end ability.

Especially in today's challenging global economy, these are critical performance features for manufacturers of end-use goods, such as those used in disposable absorbent hygiene and personal care, home care and food packaging products all of which are well known Falken market components.

This investment will add more than 20 000 square feet and significantly increase capacity in that facility. The project costs are factored into the company's previously reported capital guidance for 2011 and is being entirely financed internally without debt or shareholder dilution.

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. See www.falkenltd.com.

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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