Orbital and UCAL Sign Technical Cooperation Agreement for India

    PERTH, Australia, Feb. 3 -- Orbital announced today that they have granted UCAL Fuel Systems
Ltd the right to manufacture and supply components of Orbital's OCPTM Direct
Injection fuel system to the 2-stroke motorcycle market in India, through a
Technical Cooperation Agreement (TCA).
    All technology transfer arrangements require the approval of the Indian
Government and it is anticipated that this approval will be completed within
60 days.  On approval, this agreement provides Orbital with revenues generated
from the transfer of intellectual property and the provision of engineering
services for on-going technical support.
    UCAL, based in Chennai, is a leading manufacturer of carburetors and fuel
injection system components for the Indian motorcycle and automotive markets.
India produced over 4.2 million motorcycles in 2002, and approximately 45% of
these used traditional carbureted 2-stroke engines.  The Indian market is
increasingly emissions conscious, with stringent emissions standards
commencing in 2005 and strengthening in 2008/09.  OCPTM Direct Injection is a
cost effective, viable solution enabling 2-stroke motorcycles to meet these
new emissions requirements.  The Orbital solution also provides significant
improvements in fuel economy in an expensive gasoline market, greatly
enhancing the acceptability of the product.  The TCA fully equips UCAL to
supply local motorcycle manufacturers with locally produced product.
    UCAL will provide Orbital's Indian motorcycle customers the same system
that is currently achieving wide acceptance in the European scooter market
where 3 manufacturers produce 6 models incorporating the technology.
    Synerject, Orbital's manufacturing joint venture with Siemens VDO
Automotive Corporation, will supply specific components, such as the air
injector, to UCAL however UCAL's low cost manufacturing base will allow a cost
effective supply of Orbital technology into this very important and rapidly
growing market.

    "All 2-stroke engines produced in India from 2005 onwards will need to
incorporate technologies like OCPTM Direct Injection and our access to
Orbital's technology will have a significant impact on our future business in
this sector" said Mr Jayakar Krishnamurthy, UCAL's Managing Director.  "We
look forward to working closely with Orbital on this project and exploring
further opportunities that may be of mutual benefit in the future."
    "This agreement is an important initial step for the adoption of Orbital
technology by domestic Asian motorcycle manufacturers," said Orbital's Chief
Executive Officer, Mr Peter Cook.  "India is a very large, rapidly growing,
and receptive motorcycle market for our technology and 2-stroke engines play
an important role in this price competitive environment."

    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.