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Peugeot Motocycles Developing Clean Scooters

15 June 2000

Uses Orbital Direct Injection to Reduce Emissions

    PERTH, Australia - Peugeot Motocycles, Europe's third largest motorcycle 
manufacturer, are actively developing clean scooters for the European market 
using Orbital's direct fuel injection system.  The air assisted direct 
injection and engine management systems are being industrialised by Synerject, 
Orbital's joint venture with Siemens Automotive.

    Peugeot Motocycles scooters fitted with these direct injection systems
will give the customer significant fuel economy improvement and the emissions
capability of current and proposed future emissions requirements.  Furthermore, 
the engines retain the desirable power to displacement ratio of the 2 stroke 
engine, while delivering enhanced driveability and misfire free engine 
operation.

    Orbital CEO Kim Schlunke said the Peugeot agreement was another indication
that world-leading manufacturers recognised the multiple benefits of Orbital
technology.

    "In the marine market, our direct fuel injection system is a mature,
industrialised product, and we now have several manufacturers in the
motorcycle market that have either launched product or are close to doing so."

    Peugeot Motocycles plan to show their direct injected product at the
forthcoming motorcycle exhibition to be held in Munich later this year.

    The air assisted direct injection systems are now in production with four
manufacturers spanning the motorcycle, outboard engine and personal watercraft
product markets.

    Synerject is a 50:50 Joint Venture between Siemens Automotive and Orbital
Engine Company (Australia), formed to manufacture the direct injection
components used in the air-assisted direct injection systems and to provide
Orbital Direct Injection Engine Management System services to the motorcycle
manufacturers.

    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.