TEAM Industries & Fallbrook Technologies Inc. Announce Significant Progress

Bagley, Minnesota, May 8, 2014 – Fallbrook Technologies Inc. (Fallbrook), inventor of the NuVinci® continuously variable planetary (CVP) transmission technology, and TEAM Industries (TEAM) announced plans today for the near-term commercialization of NuVinci technology in a transmission suitable for a small, low- to medium-speed vehicle. Initial production units should be available by the end of 2015 or early 2016.

Fallbrook and TEAM have been working since 2011 to validate the benefits of the NuVinci technology for TEAM’s products. In November 2012, the companies entered into an exclusive licensing agreement for the use of NuVinci CVP technology in North America and Europe for electric and gasoline light vehicle applications.

TEAM is the largest supplier of rubber belt continuously variable transmissions (CVTs) to the All-Terrain Vehicle (ATV), Utility Terrain Vehicle (UTV), Low/Medium Speed Vehicle (LSV/MSV), and Neighborhood Electric Vehicle (NEV) markets, all of which are included in Fallbrook's license to TEAM.

"A recently completed design project suggested that it was possible to have a NuVinciequipped commercial product available in a relatively short time frame," said Tony Passanante, Senior Director of Strategic Planning at TEAM. "We are eager to take advantage of the opportunity to have the first commercial NuVinci application available in a powered vehicle outside of eBikes."

Fallbrook and TEAM have revised and enhanced their licensing agreement including identifying specific development and sales targets as well as providing TEAM personnel access to additional design tools from Fallbrook. "While the details of the updated licensing agreement are confidential," said William G. Klehm, III, Fallbrook's Chairman and CEO, "we anticipate there will be other TEAM commercial products incorporating NuVinci technology after the introduction of the initial product." Klehm commented further, "We are thrilled with the progress that has been made and the expansion of this relationship. More effective/affordable technology is required for the next generation of transmissions, and that is exactly why the NuVinci technology was developed."

Fallbrook's Vice President of Product Development, Jeremy Carter, added, "The NuVinci CVP is the next generation of transmission technology that we believe over time will replace not only geared automatics but also belt CVTs. With the simplicity of design and the possibility of improving economy without sacrificing power, NuVinci technology addresses 'off-highway,' automotive, and a wide variety of other applications."

"As I stated when we first signed a licensing agreement with Fallbrook in 2012," said David Ricke, TEAM's President and CEO, "TEAM is dedicated to driving innovation. That is why we are so excited about the NuVinci technology. The NuVinci CVP," Ricke continued, "will provide our customers with an advanced drivetrain solution that improves performance, efficiency, and reliability. And getting to market quickly helps reinforce our leadership position."