---

Orbital Engine Corporation Comments on Share Price

9 October 1998

Orbital Engine Corporation Comments on Share Price

    PERTH, Western Australia, Oct. 9 -- Orbital Engine
Corporation would like to comment on the recent weakening
of Orbital's share price and provide a brief outline of its current business
activities.
    The Directors are not aware of any change in the Company's business
activities that would give rise to the recent share price fall.  The fall
would appear to be due only to a number of contributing external factors.
Orbital Engine Corporation stock is traded on a number of international stock
exchanges including, Australia, New York, Berlin and Frankfurt, where sudden
movements in exchange rate and local market conditions can contribute to
fluctuations in the Company's share price.
    As outlined in the recently circulated 1998 Annual Report and confirmed
here commercial and technical progress is being maintained in accordance with
announcements previously released to shareholders.  In the period since the
Company's shares traded as high as 7 1/8 in July 1998, Orbital's business
prospects have been improved by a series of commercial and technical
developments.
    Orbital is continuing to work closely with Daimler Benz and Siemens in
programs directed toward the utilization of Orbital's direct injection
technology in four stroke automotive engines.  Discussions in progress are
aimed at concluding substantial commercial contracts in a timely fashion.
Orbital is also engaged in a number of aggressive programs and advanced
commercial discussions with eight other automotive companies that wish to
access the fuel economy performance and emissions benefits that Orbital direct
injection technology could provide them.
    As part of its automotive two-stroke activity Orbital has submitted
evaluation vehicles to customers recently and has embarked on a funded program
that could lead to engine manufacture in the near future.
    In the non-automotive arena, Mercury Marine continues to expand its sales
of Optimax(TM) engines using Orbital technology in the USA and in Australia
where four models were recently released.  Pursuant to the supply agreement
entered into with Bombardier Rotax Orbital is active in programs for a market
launch of Sea Doo(TM) products using the Orbital technology.
    The important high volume motorcycle market is being developed by three
motorcycle manufacturers who are being supported by the company in production
programs targeted for release in the next 12-18 months.
    Orbital continues to grow its relationship with Siemens both in the role
of systems integrator for the automotive business and as the joint venture
partner for Synerject LLC, the supplier of the key injector components.  The
Directors and Management of Orbital, based on business in hand, are confident
that its technology is penetrating its global markets with a range of products
at an aggressive rate and in line with the Company's timetable.