Orbital and Siemens Seek Revised Synerject Investment

    PERTH, Australia, Feb. 6 Orbital Engine Corporation
and Siemens as 50:50 partners have made a significant investment in
the establishment of the joint venture Synerject LLC.  After 4 years of
operations this company now serves the marine, recreation, motorcycle and
automotive markets from its 3 locations across the globe securing a firm
foothold in each of these markets.  In the non-automotive market, Synerject is
the leading supplier of Orbital Combustion Process (OCP) componentry and
systems with successful product launches and growing market share with
customers like Mercury Marine, Bombardier, Tohatsu, Aprilia and Sundiro.
    As a result of increased investment in the automotive sector, and a
corresponding desire to streamline its product portfolio to concentrate solely
on the automotive sector, Siemens, in close consultation with Orbital has
begun to explore a possible sale of its shareholding in Synerject.
    Leading independent European investment banking firm Ermgassen & Co,
London, has been retained by the parties on an exclusive basis to assist in
seeking the most appropriate partner and to fully exploit the value created in
Synerject.  Ermgassen & Co has carried out a thorough analysis of the business
and their positive valuation of Synerject supports the investment made by
Orbital and Siemens.
    Approaches are being made to selected potential strategic purchasers who
will not only be able to maximise the value of the existing business but also
grow Synerject further into new markets and complementary product areas.
    Orbital and Siemens are putting in place the most appropriate revised
arrangements that will enable Siemens to best support its automotive customers
with Orbital based products.
    Dr. Wressnigg, CEO of Siemens Automotive, said: "Siemens will continue to
explore opportunities in order to promote Orbital based products for its
automotive customer base notwithstanding the potential sale of Siemens'
shareholding in Synerject."
    Mr. Kim Schlunke, CEO of Orbital, said, "We expect that staff, customers
and suppliers will see little changes in the process and can look forward to
an expanded operation that can better leverage the opportunities that we have
today.  Orbital is fully committed to the non-automotive market and looks
forward to a successful working relationship with appropriate partners."
    Orbital is a leading international developer of engine technologies using
direct in-cylinder fuel injection and lean-burn systems for enhanced fuel
economy and lower emissions.  The company serves the worldwide automotive,
marine, recreational and motorcycle markets.  Headquartered in Perth, Western
Australia, Orbital stock is traded on the Australian Stock Exchange (OEC), the
New York Stock Exchange (OE) as well as the Berlin (ORE) and Frankfurt (OREA)
Exchanges.