FLKI Falken Industries Ltd (CE)

Falken Industries Ltd (OTCBB: FLKI) has announced initiating new investments by its European Production Units. The investments are motivated by increased demand, enhanced market share, a very favorable projection for 2011 and 2012 and a desire to ensure production capacity for both branded and private label productions. Falken is planning to finally respond to significant US retailer and distribution interest in its product conceptions, notably for its well known Clean Plus® brand. The enhanced production lines, including a new aerosol facility are scheduled to go into full operation in the first half of 2012 but will start to be integrated as of the end of the 1Q 2011, resulting in an increase in installed capacity which will reach 40%.

"We are expanding our production capacity and consolidating our position among the largest producers of impregnated wipes and specialty chemicals in the world. This is in line with our strategic plan which provides for growth and internationalization. In addition, we are confirming our vocation for investments in state-of-the-art technology, the continued financial strength of our company and foremost, the commitment to our shareholders," said Manuel Garcia-Faure, Communications Officer for Falken.

The new investments are designed to increase the productive capacity of Falken production plants in line with growth in the domestic and international markets. Such investments also follow the Company's strategic plan, the reduction in logistical costs and greater proximity to major consuming centers for its product collections. The new lines will significantly increase manufacturing capacity for Falken's hygienic, disinfection, and food approved product conceptions and for its aerosol division.

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.

Contacts: Falken Industries Ltd Manuel Garcia Communications Officer +1609 357 0316 mgarciafaure@falkenltd.com