Valvoline and Fallbrook Technologies Sign Trademark Licensing and Development Agreement

- Valvoline to Develop and Market Fluids and Other Products Related to Fallbrook's Breakthrough NuVinci(TM) Continuously Variable Planetary Transmission Technology -

San Diego- Feb. 13: The Valvoline division of Ashland Inc., and Fallbrook Technologies Inc. (Fallbrook), a pioneering technology development and intellectual property licensing company, announced today that they have entered into a trademark licensing and development agreement to design, test and market specialty fluids designed to optimize the performance of Fallbrook's NuVinci continuously variable planetary (CVP) transmission technology.

These fluids, along with other related products, will be sold by Valvoline under Fallbrook's NuVinci brand name.

"We're proud to be joining the Valvoline group of brands," said William Klehm III, president and CEO of Fallbrook. "Valvoline is one of the largest and most respected global suppliers of packaged fluids, with a family of premier brand names everyone knows. Fallbrook is out to change the way the world builds transmissions, and our partnership with Valvoline will help us do that."

"We see our partnership with Fallbrook as a strategic entry point into the growing market of advanced infinitely variable transmission technologies," said Bob Craycraft, senior vice president and general manager for Valvoline. "There is tremendous long-term potential both in Fallbrook's NuVinci technology, and in the entire high-tech fluids business."

NuVinci technology is the most practical, economical and universally adaptable CVP for human-powered and motor-powered vehicles and machines. The NuVinci CVP is ideally suited for applications in many major industries, ranging from bicycles, light electric vehicles (LEVs), and automobiles to trucks, agricultural equipment, and utility-class wind turbines, among others.

The NuVinci CVP 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. CVP transmission fluids will have properties specifically designed for transmitting torque between two smooth rolling elements. The fluids will also provide lubrication to protect elements from wear, dissipate heat, and dampen vibrations in the transmission, just as conventional transmission fluids do in geared transmissions.

"We're pleased that Fallbrook has selected Valvoline as its exclusive trademark licensee and supplier of fluids for the NuVinci CVP," said Dr. Frances E. Lockwood, senior vice president of technology for Valvoline. "We are a leader in the emerging fluids technology for traction drives and infinitely variable transmissions, and we look forward to working with Fallbrook to bring CVP transmissions to market."

Valvoline will begin supplying NuVinci brand CVP transmission fluid to Fallbrook in mid-2006.

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 www.fallbrooktech.com.