Fallbrook Technologies Inc. Announces Agreement With Chengdu Bus Company

Chinese company to implement Fallbrook's NuVinci(R) technology to improve bus fuel economy -

SAN DIEGO, June 21, 2010 - Fallbrook Technologies Inc. (Fallbrook), a technology company dedicated
to improving the performance and flexibility of transmissions for vehicles
and equipment, announced today that it has signed a memorandum of
understanding (MOU) with Chengdu Bus Company Ltd. (Chengdu), a Chinese bus
manufacturer.

Under terms of the MOU, the companies will enter into a development
agreement to implement Fallbrook's NuVinci continuously variable accessory
drive (CVAD) for use in Chengdu's buses which serve the Chinese market.

"This MOU with Chengdu is a major validation of our NuVinci CVAD
technology and its potential to deliver fuel efficiencies for vehicle
manufacturers," said William G. Klehm III, Fallbrook's chairman and CEO.
"China is searching for ways to reduce its oil consumption and we believe the
NuVinci CVAD can make a real difference in the public transportation sector."

"The Chinese government has made it a basic policy to expand and promote
public transportation, and will provide stronger supports in subsidies and
investments," said Rongkun Wang, chairman of Chengdu. "We believe our
cooperation with Fallbrook and the NuVinci CVAD will increase the fuel
efficiency and quality of our buses, and will enable us to better meet our
nation's growing transportation needs."

ASL Management Consulting Company (Shanghai), Ltd. (ASL) is assisting
Fallbrook in establishing the use of their products in China through market
analysis and customer focus, customer contacts and introductions for
applications, and the establishment of China Design Institutes for technology
application.

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
platform can be used in a wide variety of transmission-based vehicles or
devices.

About CVAD

A CVAD is a device that is designed to optimize the performance of
engine-driven accessories on a vehicle (alternator, air conditioner, water
pump, power steering). Under existing practices, these accessories are
connected to the engine and therefore dependent on the speed of the engine
for their power, as the engine speed goes up or down the accessories' speed
goes up and down. A CVAD, which operates between the engine and these
accessories, is designed to allow accessory speed to vary according to
performance needs independent of the engine speed. Based on its research and
testing, Fallbrook believes that CVADs have significant potential as a
so-called "clean" technology, because improved accessory performance can
result in improved fuel economy.

About Chengdu Bus Co., Ltd.

Founded in 1952, Chengdu Bus Co., Ltd. (Chengdu), is one of the key
enterprises of the Chinese national machinery industry.

The company produces six categories and 90 models of public transport and
highway market vehicles, including urban buses, highway buses, tourist buses,
gas-powered cars and special buses. Recently, to meet a national public
transportation mandate, Chengdu introduced double-layer open sightseeing
buses, 16-meter low-channel BRT buses, and 12-meter urban buses.

The company's Web site is www.shudubus.com.

About ASL Management Consulting Company (Shanghai), Ltd.

ASL Management Consulting Company (Shanghai), Ltd. (ASL) which provides
services and investments to customer companies in the environment, energy,
electrical/electronics and technology sectors. These companies are Chinese or
foreign companies entering or in China and developing in these sectors. ASL
provides senior executives to assist these customers.

To learn more about ASL and its customers and focus, please visit:
www.asl-partners.com

About Fallbrook Technologies Inc.

Fallbrook Technologies Inc. is a technology company dedicated to
improving the performance and flexibility of transmissions for vehicles and
equipment. Fallbrook's NuVinci(R) 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 350 patents
and patent applications worldwide.

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

Emile Barrios, Fallbrook Technologies Inc., +1-619-890-5405, ebarrios at fallbrooktech.com