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Orbital and Sundiro Motorcycle Sign Direct Fuel Injection Agreement

21 October 1998

Orbital and Sundiro Motorcycle Sign Direct Fuel Injection Agreement For Two-Stroke Engines

    SHANGHAI, People's Republic of China, Oct. 21 -- Orbital
Engine Corporation and China Hainan Sundiro Motorcycle Co Ltd
(Sundiro) today announced they have entered into an agreement to use Orbital's
computer-controlled direct fuel injection on conventional two-stroke engines.
Sundiro motorcycles equipped with Orbital's technology have demonstrated
significant reductions in emissions and improved fuel economy and this
collaboration is intended to enable the widespread and rapid introduction of
this technology in China which has the largest and most rapidly growing
motorcycle market in the world.
    "Our collaboration with Sundiro is further evidence of the growing
opportunities we see for the application of Orbital's patented combustion
process (OCP) to motorcycles and other vehicles in Asian nations.  Our direct
fuel injection technology applied to two-stroke engines provides a dramatic
change for the customer who sees reduced smoke, enhanced driveability and
significantly improved emissions and fuel economy," said Kim Schlunke, Chief
Executive Officer.  "This agreement is also the product of global trends
toward increasing the quality of life and shielding our planet's environment
from damages caused by mobile emissions such as from motorcycles and
automobiles."
    Sundiro is one of China's largest motorcycle manufacturers.  It made
553,000 motorcycles in 1997, a 57% growth compared to 1996.  It expects to
make over 600,000 motorcycles in 1998.  Orbital has been working with Sundiro
for more than two years on improving internal combustion engine emissions.
This agreement defines licence and royalty terms, and how the partners will
continue their close cooperation to apply Orbital's OCP technology on
Sundiro's products.  Volume production is scheduled to start in the first half
of the year 2000.
    The applied technology will use computer-controlled direct fuel injection
on conventional two stroke engines to reduce emissions, enhance fuel economy
and improve certain performance characteristics.  Both companies have achieved
their targets on prototype scooters with test results showing that the
emissions can be reduced by 90% and fuel consumption lowered by more than 30%
with other major performance specifications either further improved or
remaining the same.