Zooming in, the belt says "Conti Drive System" on it. More info on that here: http://www.conti-drive-system.com/ They seem to be competing with the "Gates Carbon Drive", here: http://www.gatescarbondrive.com/ I know nothing of bicycles, but I do recall when automakers started replacing timing chains with timing belts. The results weren't always great, especially with interference engines where misaligned timing means…
Belt driven bikes have actually been around for quite a while. They aren't nearly as common as chained bikes but are generally less greasy/dirty. They are also usually good for people who don't do a ton of bike maintenance because (unlike a chain) a belt will never rust.
Edit: Actually I think the main draw was the continuous gear ratios you got, somewhat comparable to a CVT