Delphi and Orbital Sign Technical Transfer and License Agreement

    FLINT, Mich., Aug. 23 Delphi Automotive Systems
and Orbital Engine Corporation announced today they
have entered into a technical transfer and license agreement.  Under the
agreement Delphi has acquired rights to manufacture and sell Orbital's air
assisted direct fuel injection technology as part of Delphi's complete fuel
and engine management system (EMS).
    
    The completion of this Agreement will trigger an aggressive market entry
project by Delphi and Orbital combining the expertise of the two companies and
is directed at securing high volume production supply contracts from
automotive manufacturers.  This Agreement also gives Delphi unprecedented
access to Orbital's most up to date system and component technology.

    Orbital's advanced lean burn combustion system utilizing air assisted
direct injection can achieve fuel economy savings of 12 to 20 percent.  Both
fuel economy and emissions levels for the system are superior to any competing
technology.  When combined with Delphi's EMS technology, Orbital and Delphi
will be in a unique position to supply its customers with lean burn systems
capable of meeting stringent U.S., European and Asian emissions standards
using common EMS architecture and fuel system hardware.

    "Delphi is positioned to be a leader in lean burn spray guided direct
injection gasoline systems globally," said Guy Hachey, president of Delphi's
Energy & Chassis Systems division.  "We expect to introduce the next
generation gasoline direct injection technology in the automotive market
worldwide in the shortest possible timeframe, enabling Delphi to offer its
customers air assisted (OCP) direct injection systems as part of its fuel
injection product portfolio."

    Orbital CEO Kim Schlunke said, "Delphi's size, reputation and
technological expertise ensures that manufacturers using our technology will
receive leading EMS system design and program support.  This arrangement
certainly creates further momentum in our automotive business and the global
reach of Delphi will also fulfill Orbital's desire to link with a fuel systems
partner with a presence in all major automotive markets."

    The technical transfer and license agreement follows a memorandum of
understanding signed between Orbital and Delphi announced on 10 October 2000
under which the parties agreed to cooperate on market development and supply
of direct fuel injection systems for worldwide automotive applications.

    Orbital already has ongoing technical programs with 10 major automotive
manufacturers in Europe, United States and Asia.