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Orbital Technology Continues to Gain Momentum

14 June 2000

Orbital Technology Continues to Gain Momentum

    PERTH, Australia - The following is the text for Orbital Engine 
Corporation's June 2000 newsletter to shareholders.  The document highlights the
continued momentum for commercial adoption of Orbital's direct fuel injection 
technology.  Over this last quarter, Orbital doubled the number of customers 
that have now commercially released new product by adding Aprilia (motorcycles) 
and Tohatsu (outboard engines) to Bombardier (personal watercraft) and Mercury 
Marine (outboard engines) that were already in the market place.  Furthermore, 
emissions regulations were brought forward and tightened in the European 
motorcycle sector that significantly favour Orbital.

    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.

    AUTOMOTIVE FOUR-STROKE

    Delphi agreement boosts auto prospects

    The acceptance of Orbital technology in the automotive industry received a
major boost when the company entered a co-development agreement with Delphi
Automotive Systems.

    Delphi is a world leader in automotive component and systems technology.
It has 214,000 employees and operates 178 wholly-owned manufacturing sites and
41 joint ventures.  Delphi was the systems division of General Motors until
early last year when it was floated off as an independent company.

    This agreement is additional to the Synerject joint venture between
Orbital and Siemens Automotive, and means that Orbital is now working closely
with two of the leading international component suppliers.

    Delphi and Orbital will focus joint development on a spark plug injector
that integrates the spark plug and fuel injector into a single device.  The
spark plug injector has been developed by Orbital and will now be refined for
commercial application in conjunction with Delphi.

    This development is an extension of Orbital's core direct fuel-injection
activities and will utilise the supply infrastructure already in place with
Synerject.

    The advantages of the proposed fuel system are two-fold.  First, it
produces the efficiency benefits that are synonymous with Orbital technology,
namely lower emissions and better fuel economy.  Second, it can be applied
more easily to engines because of its unique packaging.  This system requires
just one point of access to the combustion chamber for both fuel and spark,
and therefore it will need only minor changes to engines on the road today.

    The Delphi agreement follows continued successful promotion in Europe of
Orbital's 4-stroke test vehicle.  A number of manufacturers and engine
technology companies have been able to evaluate the test vehicle, which has a
conventional 4-stroke engine incorporating Orbital's direct fuel injection
technology.

    The test vehicle has consistently achieved the strict European Stage 4
emission limits, which take effect in 2005, while also achieving a 10%
improvement in fuel economy over an identical vehicle with a conventional fuel
injection system.