Falken Industries Ltd
OTC Bulletin Board : FLKI

Falken Industries Ltd

June 01, 2011 08:59 ET

Falken Industries Ltd (OTCBB:FLKI) Plans Major Expansion in Overseas Distribution

TRENTON, NEW JERSEY--(Marketwire - June 1, 2011) - Falken's (OTCBB:FLKI) is a leading worldwide developer of chemical and wipe products with its best known brand conception operated by the Clean Plus® international product group. "The company will be focusing on a significant expansion of its already well established global distribution network, targeting in 2011 and 2012 expansions in the Middle East, South America, South Africa and the Commonwealth of Independent States including Russia," a top company official said on Tuesday.

"We are looking at expanding our global distribution in these four regions through super distribution, joint ventures or partnerships, we are also open and ready for small to medium sized acquisitions," said Helle Madso, president while addressing a group of institutional shareholders at the company's offices.

Maintaining that Falken would focus on its globally established primary brands – Clean Plus® and Bianci® - Madso added: "We will be focusing on adding value to products."

The company earns 60 percent of its revenue base on non-European operations.

Apart from its expanding global plans, Falken's regional focus will be on brands like HandyMan®, Plumbo®, Winglass®, Grimex®, with substantial promotional efforts to expand the presence of Clean Plus® "Premium" and Bianci® "Classic" in major chains.

The company also expects its prices to readily support a margin exploding increase. While the company is extremely well hedged against the rise in commodity and other raw materials, prices will go up solidifying and enhancing the company's already remarkable 45% reported margins. The company is able to increase prices while easily besting its competitors because of its reputed cost efficiencies.

"So we are looking at expanding operations and adding value for customers," said Manuel Garcia, communications officer emphasizing that Falken was no longer just a car care and accessory company, he added: "It is a company in chemicals and wipe productions and its pioneering conceptual models and capacities are supported with creative leads in top-tier facilities, and with teams inspiring a creative atmospheres encouraging the development of compelling new original products able to service the small as well as the extraordinary large customer with the utmost logistical and price efficiencies."

Garcia concluded: "Falken is committed to extending its leadership in the chemical, wet wipe and new product development categories, maximizing the profitability in its licensed business, aggressively addressing new audiences and extending its brands worldwide and online. The strategic mix of internally created and externally licensed product portfolios makes Falken highly adaptable and well balanced."

About Falken Industries Ltd:

Falken Industries Ltd (OTCBB:FLKI) www.falkenltd.com is an increasingly 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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