Fallbrook Technologies Inc. and Hodyon Sign Joint Development Agreement

- Companies to develop air conditioner compressor application using NuVinci(R) CVP technology -

SAN DIEGO, March 8 -- Fallbrook Technologies Inc. (Fallbrook), a technology company dedicated to improving the performance and flexibility of transmissions for engine- and human-powered devices, announced today that it has signed a joint development agreement with Hodyon, a manufacturer and distributor of climate control systems, to develop an air conditioner compressor for mobile applications.

Under the terms of the joint development agreement, Fallbrook's NuVinci continuously variable planetary (CVP) transmission will be used to enable the compressor to run independently of engine speed. Fallbrook believes this will give vehicle designers, fleet operators, accessory manufacturers and engine manufacturers the ability to reduce engine idle, improving fuel economy while optimizing air conditioner compressor performance. The NuVinci CVP-equipped compressor will be designed for the medium- and heavy-duty vehicle aftermarket.

Approximately nine percent of all the oil imported to the U.S. each year is consumed in powering automotive air conditioners. Because NuVinci CVP-enabled AC compressors can operate continually at their optimum speed, they offer an opportunity for significant fuel savings.

"For bigger vehicles, air conditioner compressors are a major opportunity for improving performance," said David Hancock, CEO of Hodyon. "Combining our compressor with NuVinci technology will enable us to make these vehicles more environmentally-friendly in ways never before possible."

The agreement with Hodyon is part of Fallbrook's ongoing development of the NuVinci continuously variable accessory drive (CVAD). A CVAD is a device designed to help the engine-driven accessories on a car or truck (air conditioner compressor, alternator, water pump, etc.) run more efficiently. These accessories have, in the past, been connected directly to the engine by a serpentine belt, so their speeds are tied to engine speeds. A CVAD sits between the engine and these accessories, allowing accessory speed to vary according to performance needs rather than engine speed.

"With the auto industry's current focus on making cars and trucks 'greener', this agreement with Hodyon is happening at exactly the right time," said William G. Klehm III, Fallbrook's chairman and CEO. "With NuVinci CVADs, we're out to change the way the world builds these vehicles and systems."

NuVinci technology is a practical, economical and universally adaptable continuously variable transmission for human- and motor-powered vehicles and machines.

The NuVinci CVP uses a set of rotating and tilting balls positioned between the input and output components of a transmission. Tilting the balls changes their contact diameters and varies the speed ratio. The NuVinci CVP can be used in a wide variety of transmission-based vehicles or devices.

About Hodyon

Hodyon is a manufacturer and distributor of climate control products and systems. The company is ISO 9001:2000 certified, a two-time award winner for growth from Inc. magazine, the 59th fastest growing manufacturer in the US and, according to the Austin Business Journal, the 17th fastest growing company in Austin, Texas. For more information visit www.hodyon.com.

About Fallbrook Technologies Inc.Fallbrook Technologies Inc. (Fallbrook), headquartered in San Diego, California, is a technology company dedicated to improving the performance and flexibility of transmissions for vehicles and equipment. Fallbrook's revolutionary NuVinciŽ 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 325 patents and patent applications worldwide. Fallbrook intends to continue its research and development activities in order to continue to enhance the performance and capabilities of NuVinci technology.

To learn more about Fallbrook and its NuVinci technology, please visit www.fallbrooktech.com.