Falken Industries Ltd (OTCBB: FLKI) said today that acting on recommendation of Capprocon its valuation consultants, that it will review, in light of an immediate counter-offer the $1.50 per share, control conditioned, takeover bid received from Norex International and which it considers at least preliminarily insufficient.

Falken Industries Ltd a leading global manufacturer of consumer, professional and industrial products whose best known branded product conceptions are the Clean Plus® Group, see www.cleanplus.com announced on October 19, 2010 that it had received notice from Norex International, that the latter would seek to acquire a controlling position in the company at $1.50 per share. Norex is a key supplier of Falken and well placed to appreciate the company's activity and potential. Falken's management advised that it would take no action inconsistent with shareholder interest. On November 18 Falken announced the retention of Capprocon a European Consulting Firm to conduct a proper valuation and that it would not officially respond on the bid until its review process is complete. "Falken's board will make a recommendation when the due diligence on both sides is completed on or about March 31, 2011, and any interim counter offers formulated and considered," Manuel Garcia, the company's communication officer, said. The attempt by a Falken key supplier to seek a control position was not expected.

A spokesman at Falken indicated that the offer, all considered was at least 20 percent below what it expected a proper valuation to return. Manuel Garcia indicated that some members of management have called the offer "ludicrous," saying it significantly undervalues the company. Falken has refused to speculate on what a control position is really worth and indicated that it would not officially comment on what it would be willing to recommend. Norex said it currently has the only offer on the table. Corporate analysts predicted that Falken may accept a bid based on a meaningful premium, perhaps to $ 1,80 per share. "Everyone fully expects that Norex will make a revised offer in the coming weeks or months," said Garcia.

"Falken has been the target of competitor interest in the past and these behemoth companies may be contemplating offers of their own," said Garcia.

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

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