Orbital Powerplant Chosen for Low Cost Russian Vehicle

    PERTH, Australia, April 1 Orbital confirmed that Venture Industries Inc, a
US auto engineering and materials specialist, has selected the direct injected
two-stroke Orbital Combustion Process (OCP) engine as the powerplant for a
project to build a mass produced vehicle for the Russian market.  The
selection follows detailed testing in Moscow of an Orbital supplied prototype
engine.

    The engine is a derivative of Orbital's 1.2 litre direct injected
two-stroke, 3-cylinder engine used in the "Genesis" fleet trial.  In 1996
Orbital released one hundred Ford Festiva vehicles fitted with OCP engines
into the Australian market to demonstrate the merits of the technology.  The
fleet accumulated over five million kilometres with strong user acceptance and
excellent in-field performance.

    Working under the direction of the City of Moscow, Russian car maker OAMO
ZiL and Venture are planning an investment of US$250 million to manufacture
150,000 cars and 300,000 engines per year with a start of production targeted
for 2004.  The extra engines are earmarked for sale to other car manufacturers
in the region.  OAMO ZiL is a well-established Russian truck and vehicle
manufacturer with extensive capabilities and production facilities in Moscow.

    "The selection by Venture and ZiL of Orbital's two-stroke direct injection
technology is a further endorsement of its competitiveness and attractiveness
in emerging markets", said Mr. Ken Johnsen, Orbital's Executive Director of
Business Development.

    "As well as the proven performance of the engine, its simplicity and low
cost is a big attraction in Russia where most cars sell for less than
US$10,000.  Compared with conventional multi-point fuel injected four-stroke
automotive engines, an OCP direct inject two-stroke engine can have up to
40 per cent fewer parts and be up to 30 per cent lower in cost to
manufacture."

    "Orbital is pleased with the selection of its powertrain and the
opportunity this presents to launch product in the automotive sector in
Russia.  While project financing and operational aspects are put into place
over the next few months, Orbital will be working to secure technology
transfer and engineering services agreements with these companies to
facilitate our support of the Russian project."