Falken Industries Signs Russian Super Distributor

Paris, France January 16, 2007 -- FALKEN INDUSTRIES LTD –Clean

Plus® Product Group announced the signing of a Russian Super Distributor for the Clean

Plus® “Premium” line and the new mid-ranged hypermarket Bianci® line of auto care

products. The agreement, commencing in 2007, ensures a 5 year purchase of 1,250,000 €

($1,600,000) annually.

Approximately 1.8 times the size of the United States, Russia and its population of 143

million are regaining economic terrain. 2005 marked the seventh straight year of

economic growth and real personal incomes have realized average increases over 12%.

“Russia is a promising country with its populous domain, but its current socio-economic

climate is also an advantage,” points out Helle Madso, Falken Industries Executive Vice-

President-Europe, “The country is undergoing a time of transition, making its newly

developing economy more impressionable. Our entry time is ideal, for we can firmly

establish brand presence without expending the expenses normally needed to break into a

more established and resistant market.”

The newly signed Super Distributor has ten years of experience in the Russian

automotive after market. This acute comprehension of the auto care market combined

with already established distribution channels should allow for a smooth and fast

transition of Clean Plus® products to store shelves. Additionally, Falken Industries

learned that the Senior Sales Manager previously worked for one of Clean Plus®’s

European competitors. Andrew Eakin, New Business Development & Sales Officer,

comments, “Strategically speaking, this insider knowledge gives them an edge when

launching the Clean Plus® brand.”

Clean Plus® products have already enjoyed immense popularity in other international

markets, and Falken Industries expect the same results for Russia. The Clean Plus®

“Premium” and mid-ranged hypermarket Bianci® auto care lines are expected to be

available to Russian consumers starting spring of 2007.

About Falken Industries Ltd:

Falken Industries Ltd OTC : 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.