SAN DIEGO, June 21, 2010 /PRNewswire/ -- 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 http://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: http://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 http://www.fallbrooktech.com.

SOURCE: Fallbrook Technologies Inc.

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