03.12.2008

Fallbrook Technologies Inc. (Fallbrook), a pioneering technology company dedicated to improving the performance and flexibility of transmissions for bicycles, light electric vehicles (LEVs) and other devices, announced today that it has entered into an agreement with MTD Products Inc (MTD).  MTD will manufacture Fallbrook’s NuVinci continuously variable planetary (CVP) drivetrain for the bicycle and LEV markets.  The initial agreement is for five years.

The selection of MTD follows Fallbrook’s decision to assume overall responsibility for manufacturing.  As previously announced, Fallbrook’s current manufacturing licensee, Aftermarket Technology Corp. (NASDAQ: ATAC), will end production in mid-March. Under the new agreement, MTD will establish a production line at its facility in Leitchfield, Ky.  MTD and Fallbrook expect the new production line to be fully operational by the end of the second quarter of 2008.

MTD will manufacture the current NuVinci CVP model (N171B), and will work with Fallbrook’s engineering team to develop new versions of the CVP. MTD will handle all supplier relationships, and Fallbrook will take over marketing and customer support activities.   Fallbrook will honor all existing customer agreements, and is taking new orders for NuVinci hubs manufactured by MTD.   Fallbrook has set up a customer support team in Austin, Tex. to answer questions and ensure a smooth transition.

MTD Products Inc is a privately-held American company and a global leader in the design, manufacture, and sales of outdoor power equipment, off-highway transmissions, and consumer goods. The company was founded in 1932, and is today one of the world’s most accomplished manufacturing organizations in its field.  MTD is ISO 9000 certified, and its brand names include Cub Cadet®, White Outdoor Products®, Yard-Man®, Yard Machines®, Bolens®, and Troy-Bilt®. The company also manufactures specialty products for a wide range of companies, including General Electric.

“The NuVinci CVP is a perfect fit for our company,” said Dieter Kaesgen, vice chairman of MTD Holdings, the parent company of MTD Products Inc. “We are focusing now on getting the new production line running as soon as possible, and we are committed to meeting the growing customer demand for this amazing technology.”

In 2007 – its first full year on the market – NuVinci technology won several major awards, including the prestigious R&D 100 Award as one of the year’s most technologically significant products. It also won the Netherlands’ Technology of the Year Award. Bicycles equipped with NuVinci drivetrains won the Popular Science Best of What’s New award and Bike of the Year in The Netherlands.

Fallbrook will be exhibiting at the Taipei International Bike Show, March 13-16 (Booth M1226).

The agreement with MTD is a huge benefit for us and our customers,” said William Klehm III, president of Fallbrook. “We are partnering with a world-class manufacturer and it means our customers will be assured of quality, availability and ongoing innovation.”

The NuVinci CVP uses a set of rotating and tilting balls positioned between the input and output components of a transmission that tilt to vary the speed of the transmission. Tilting the balls changes their contact diameters and varies the speed ratio. NuVinci technology is the most practical, economical and universally adaptable continuously variable transmission (CVT) for human-powered and motor-powered vehicles and machines.  Current commercial applications of the NuVinci CVP include bicycles and light electric vehicles.  Other commercial implementations are in various stages of development.

About Fallbrook Technologies Inc.
Fallbrook Technologies Inc. (Fallbrook) is a technology company dedicated to improving the performance and flexibility of transmissions for vehicles and equipment.  Fallbrook’s revolutionary NuVinci® continuously variable planetary (CVP) technology is applicable to virtually any machines that use a transmission such as bicycles, light electric vehicles, automobiles, agricultural equipment, and wind turbines, among others.  NuVinci technology offers companies the flexibility to design and produce next- generation products that are better tailored to their unique business, market and competitive requirements.

Fallbrook has built an extensive portfolio of over 200 patents and patent applications worldwide.  Fallbrook’s vigorous research and development activities will continue to enhance the performance and capabilities of NuVinci technology.  To learn more about Fallbrook and its NuVinci technology, please visit www.fallbrooktech.com.

Rob Smithson - VP of Product Development, Doug Feicht - Senior Engineer and Jeremy Carter - Program Manager all graduated from the MSSTC Program.