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Sundiro and Orbital Finalize Arrangements

15 May 2000

Sundiro and Orbital Finalize Arrangements for Licensed Production Of Environmentally Friendly Motor Scooters

    BEIJING, May 12 One of China's largest scooter
manufacturers, China Hainan Sundiro Motorcycle Co Ltd (Sundiro) has signed an
agreement which finalizes the terms of a technical co-operation and licensing
arrangement with Orbital Engine Corporation Ltd .  Final
documentation is currently being prepared for submission to the Chinese
authorities for approval.  Australia's Federal Minister for the Environment
and Heritage, Senator Robert Hill and China's Minister for the Environment,
Mr. Xie Zhenhua were on hand to witness the signing of this agreement.
    "The Chinese have shown their commitment to reducing pollution by
supporting Orbital's environmentally friendly technology.  Scooters using this
direct fuel injection system produce an 80% reduction in noxious emissions and
reduce fuel consumption by 45%," said Senator Hill.  "The fuel consumption
improvements directly translate to reductions in the production of the key
greenhouse gas, carbon dioxide.  Orbital's technology is addressing both the
toxic street level emissions as well as ozone layer damaging greenhouse
gases."
    "Sundiro has taken a lead position in the Chinese market by selecting
Orbital's technology," said Mr. Ken Johnsen, Orbital's Executive Director of
Business Development.  "The adoption of Orbital technology by the Chinese
motorcycle industry, which currently produces over 10 million units annually,
has the potential to have a profound effect on emissions levels in the major
cities."
    The agreement follows Sundiro's October 1998 public commitment to apply
Orbital's direct fuel injection system to their scooters.  The agreement is a
precursor to volume production of the scooters.  It is expected the first
product will be on the road in late 2000.