FALKEN REPORTS SECOND QUARTER RESULTS

Operating Margins Increase 21.5%, net operating revenues up 11% on rising product conception demands.

FLKI today announced financial results for its 2010 Second quarter ended June 30, 2010.

The Company consistent with projections continued its global market share expansion enhancing its product conceptions in Scandinavia and opening distribution in Moldova a former East Block satellite. FLKI has been particularly active in developing these markets. Net operating revenues before currency adjustments to the dollar were up 11% from the year-ago quarter and net operating margins increased 21.5%. “The company has been particularly keen on production efficiencies and expanding margins are the result” says Manuel Garcia, Communications Officer. “We expect continued progress in procurement, hedging, and production efficiencies throughout the year” added Helle Madso, President.

During the quarter FLKI authorized a renewed expansion of its distribution platforms and additional marketing and sales support for its distributor network in developing markets. Emphasis will be focused on exploiting the opportunities created by the weak economy, and on reinforcing market segmentation coverage and penetration in existing ones. “Because of our strong penetration of the female market we enjoy a substantial advantage over our competitors” said Garcia. At the start of the economic crisis FLKI had elected to concentrate on extensive support of its existing distribution network and platforms. “We expect a substantial improvement in overall sales and profits in 2010 and a major breakthrough in 2011” emphasized Garcia.

 “If you consider the company in all its components, two of it’s hidden values are brand trust and recognition and a global distribution network, notably in Europe, which is likely worth $ 35 to 40 million to any US company seeking instant expansion of its distribution abroad. These and other core values are not reflected in the company’s share price” said Garcia, who was recently appointed to head the new IR cell whose role is to facilitate interface with the IR community.

“The new products we are planning to release this year and through the Spring 2011are very strong, and we’re really excited about them” added Madso.

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. 

Press release contact information :

1.       Manuel Garcia

Communications Officer

mgarciafaure@falkenltd.com

+1609 357 0316

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.