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Orbital Clarifies Half Year Result

2 March 1999

Orbital Clarifies Half Year Result

    PERTH, Western Australia, March 2 -- Orbital Engine
Corporation would like to clarify the recent news release
regarding its 31 December 1998 half year results released on 25 February 1999.
The company's full release, which included US dollar and US GAAP results
received confusing coverage by wire services in the US and as a result,
Orbital would like to ensure the key points in the release are adequately
conveyed to US investors.

    Reported under US Generally Accepted Accounting Principles (GAAP) the
company's results are summarized as follows:

                               USGAAP        USGAAP
                               Dec. 1998    Dec. 1997
                               US$000's     US$000's     % Change

    OPERATING REVENUE
    Licencing & royalties        4,334       3,022          43%
    DMG licence                      0       7,947        (100%)
    System sales                 3,511       1,056         232%
    Manufacturing                  661         251         164%
    Engineering                  3,882       1,887         106%
    R&D Income                   1,658       1,548           7%
    Other                        2,442       1,069         129%
                                16,488      16,778          (2%)

    OPERATING EXPENDITURE
    Cost of System Sales         3,199       1,173         173%
    Share of Synerject JV Loss   1,084           0         100%
    Additional investment
      in Meteor JV               2,642         865         205%
    Redemption of
      Convertible Note           1,374           0         100%
    Operating Costs             13,432      13,094           3%
                                21,731      15,132          44%

    Operating (loss)/profit
       before abnormals         (5,243)      1,646
    Abnormals                   (3,107)       (805)
    Operating (loss) before tax (8,350)        841
    Income tax credit/(expense)    177      (2,568)
    Operating (loss) aftertax   (8,173)     (1,726)

    Important to note is that:

    -- Operating revenues increased by 81% over the six months to 31 December
       1997 once the strategic investment by Deutsche Morgan Grenfell has been
       excluded from the prior period.  The revenue increase is primarily a
       result of significant improvements in the fundamental categories of
       licensing and royalties, fuel system sales and engineering.  These
       increases reflect important progress made in the commercialisation of
       Orbital's technology.
    -- Operating expenditure for the current period includes certain
       significant items that will not recur. Contribution obligations in
       relation to the Meteor JV have now ceased and the convertible note has
       been fully extinguished.  Furthermore, Orbital's share of the Synerject
       loss is an accounting charge that represents no cash cost to the
       company.
    -- Orbital's cash balance increased from US$17.286 million at 30 June 1998
       to US$28.692 million at 31 December 1998.

    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.