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Companies plan to cooperate on engineering, manufacturing of next-generation transmissions

Allison Transmission Holdings Inc. (NYSE: ALSN), Dana Holding Corporation (NYSE: DAN), and Fallbrook Technologies Inc. have announced the formation of strategic relationships to develop, manufacture, and commercialize high-efficiency transmissions for passenger vehicles, commercial vehicles, and off-highway equipment. These next-generation transmissions will be designed to increase fuel efficiency, reduce emissions, and improve overall vehicle performance.

Fallbrook’s NuVinci® CVP technology, which enables designers to reduce the
complexity of transmissions, superchargers, and other powertrain systems and
allows the engine to operate at more efficient speeds, will be licensed to
Allison and Dana.

Through its licensing agreement, Allison gains the exclusive right from
Fallbrook to utilize its CVP technology to develop and commercialize primary
drivetrain transmissions for Allison’s end markets, which could include
commercial vehicles, military applications, and certain off-highway and large
stationary equipment markets.

"As the premier global provider of commercial-duty fully automatic
transmissions, Allison is committed to developing and implementing new
technologies that meet the market need for improved performance, fuel economy,
and durability," said Lawrence E. Dewey, Chairman, President and Chief Executive
Officer of Allison. "For nearly a century, we have earned the trust of our
customers through an unwavering dedication to quality, integrity, and innovation
– core values shared by Fallbrook and Dana. Ours is the ideal collaboration for
developing new technology optimized for the next generation of commercial-duty
vehicles."

Under a separate agreement, Dana will hold an exclusive license from Fallbrook
to engineer and produce transmission components and other advanced powertrain
solutions with the NuVinci® CVP technology for passenger and certain off-highway
vehicles in the end markets that Dana serves.

For end markets Allison Transmission serves, Dana and Allison have signed a
letter of intent to explore a strategic alliance through which Dana would
exclusively manufacture transmission components with NuVinci® CVP technology for
Allison.

"Through the launch of these long-term, strategic relationships with Allison and
Fallbrook, both recognized innovation leaders, we continue to leverage
technology synergies across all the markets we serve – passenger vehicle,
commercial vehicle, and off-highway," said Roger J. Wood, President and Chief
Executive Officer of Dana. "This technology is a true leap forward in
transmission design that highlights our growing portfolio of advanced drivetrain
systems and comprehensive vehicle solutions that drive customer value."

Fallbrook’s proprietary NuVinci® CVP technology is an award-winning, traction
-based class of continuously variable transmission that is scalable and highly
adaptable. It controls relationships of speed and torque and is applicable to
mechanical devices that have a transmission or can benefit from speed or torque
variation. The NuVinci® transmission 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. Compared to other current
transmission technologies, Fallbrook’s analysis indicates that its NuVinci®
technology is less complex, scales and packages more easily, costs less to
manufacture, and facilitates achieving optimum performance.

"Allison and Dana are transmission industry leaders and their investments in
and adoption of our NuVinci® technology represent a powerful endorsement of its
readiness and value for multiple vehicle markets and other powered
applications," said William G. Klehm III, Chairman and Chief Executive Officer
of Fallbrook. "These strategic relationships will complement our already
successful bicycle drivetrain and auxiliary power unit businesses.
Additionally, the further adoption of NuVinci technology is consistent with
Fallbrook’s growth plans for the commercialization of accessory drive and other
industrial applications."

Full-scale production of off-highway transmissions with NuVinci-equipped
components in Dana’s served markets is expected within the next three to five
years, while implementation in passenger and commercial vehicles is anticipated
before the end of this decade.

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