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Orbital Announces Share Buy Back

17 June 1999

Orbital Announces Share Buy Back

    PERTH, Western Australia, June 17 -- Orbital Engine
Corporation Ltd. today announced it intends to buy back up to 5% of
the Company's issued capital on the open market.
    Orbital's Board believes the current share price does not fully reflect
the underlying value of the company, and while these price levels prevail, a
buy back is an appropriate use of shareholder funds and is consistent with the
Board's capital management policies.  The company will continue to be in sound
financial condition, with strong cash reserves and excellent progress made in
the commercialization of Orbital Combustion Process technology.  Orbital
believes the advanced status of programs with customers across each of its
business units provides the foundation necessary to generate the sustainable
revenue streams shareholders expect.
    Orbital today completed the necessary filings with the Australian
Securities and Investments Commission and the Australian Stock Exchange,
paving the way for the buy back period to commence on 2 July 1999 and conclude
on 2 January 2000.  Orbital intends to buy back up to 16,000,000 ordinary
shares (equivalent to 2,000,000 ADRs).  Under Australian regulations, a
fourteen day notice period is necessary prior to commencement, and a maximum
term of six months, unless extended, is permitted.  The regulations allow
Orbital to buy back up to 10% of its issued capital in any twelve month period
without seeking shareholder approval.  All shares purchased under this
arrangement must be canceled.
    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 automobile,
marine, recreational and motorcycle markets in four facilities throughout the
world.  Orbital stock is traded on the Australian (OEC), New York (OE), Berlin
(ORE) and Frankfurt (OREA) Stock Exchanges.