Manufacturing License Agreement for Breakthrough Transmission Technology

Fallbrook's Innovative NuVinci(TM) Continuously Variable Planetary Transmission Technology to Fuel ATC's Diversification Into Original Equipment Products and Solutions

DOWNERS GROVE, Ill. and SAN DIEGO, June 1 -- Aftermarket Technology Corp. (ATC) , North America's largest remanufacturer of automotive drivetrain products, and Fallbrook Technologies Inc. (Fallbrook), a pioneering technology development and intellectual property licensing company, announced today they have signed a manufacturing license agreement that allows ATC to design and build a wide range of transmission applications based on Fallbrook's NuVinci continuously variable planetary (CVP) technology.

The agreement is a strategic move in ATC's growth and diversification strategy, leveraging its ongoing transmission remanufacturing and engineering expertise into the transmission manufacturing arena. ATC's selection of Fallbrook's NuVinci technology as the basis for this part of its overall growth and diversification strategy represents a major validation of the NuVinci CVP's market potential.

Under the agreement, ATC will work with customers to design and build next-generation transmissions based on the NuVinci technology platform for a variety of industries and applications. ATC will initially target OEMs in industries that rely on transmission-based machines, from bicycles and recreation vehicles up through the agricultural and automotive arenas. ATC's decades of experience in working with a variety of transmission units and component parts throughout their life cycle make it the ideal manufacturer for these advanced drivetrains.

"ATC and Fallbrook are a perfect match to take NuVinci technology to market," said Don Johnson, president and CEO of ATC. "When we saw the ability of the NuVinci technology to deliver significant gains in performance and control in a wide range of applications, we knew it was the right choice for growing ATC's business. We expect our new CVP transmissions to create a diverse set of opportunities that will expand our customer and revenue base over time."

Johnson continued, "As we begin to market this new transmission technology, ATC will remain focused on growing our drivetrain remanufacturing business with our current and targeted customer base. While we are not raising 2005 revenue guidance based on today's announcement, we believe in this technology as another building block in our Company's growth and diversification strategy."

"NuVinci technology is the most practical, economical and adaptable CVP transmission for human-powered and motor-powered vehicles and machines," said Bill Klehm, president and CEO of Fallbrook. "It is ideally suited for application across many industries."

The NuVinci CVP controls relationships of speed and torque. It uses a set of rotating balls between the input and output components of a transmission. Tilting the balls changes their contact diameters and varies the speed ratio. As a result, the NuVinci CVP improves acceleration, performance and efficiency over conventional transmissions. Compared to traditional continuously variable transmissions (CVTs), NuVinci technology is less complex, has considerably fewer parts, offers more stable control, and provides for easier shifting. It also scales and packages more easily, and costs less to manufacture and assemble.

"Our goal with NuVinci technology is nothing less than to change the way people build transmission-based machines," Mr. Klehm added. "Our partnership with ATC is a giant leap forward in achieving that goal."

About Aftermarket Technology Corp.

ATC is headquartered in Downers Grove, Illinois. The Company provides outsourced engineered solutions and supply chain logistics services to the light vehicle (cars and light trucks) aftermarket and consumer electronics industries.

About Fallbrook Technologies Inc.

Fallbrook Technologies Inc. (Fallbrook) is a technology development and intellectual property licensing company dedicated to improving the performance and flexibility of transmissions for vehicles and equipment. Fallbrook's revolutionary NuVinci(TM) 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 utility class wind turbines among others. The 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. To learn more about Fallbrook and its NuVinci technology, please visit http://www.fallbrooktech.com/ .