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Delphi and Orbital to Focus on Near-Term Market Opportunities Of Direct Fuel Injection Technology

9 October 2000

Delphi and Orbital to Focus on Near-Term Market Opportunities Of Direct Fuel Injection Technology
    FLINT, Mich., Oct. 9 Delphi Automotive Systems
and Orbital Engine Corporation announced today they have signed a
Memorandum of Understanding (MOU) to cooperate on market development and
supply of direct fuel injection systems for worldwide automotive applications.
    Delphi and Orbital have in the recent past cooperated on a number of
technical programs relating to Orbital's air-assisted direct injection and
combustion technology (the Orbital Combustion Process or OCP), ranging from
component development of Orbital's unique Spark-Plug Injectors, to systems
integration activities on customer programs.
    As a result of this wide-ranging cooperation and the rapidly growing
market for direct injection systems, the companies have identified near-term
market opportunities and will focus their combined activities on the
conventional OCP direct injection system in order to be in a better position
to capture these opportunities.  The MOU establishes the platform for Delphi
to apply its extensive capabilities as a Tier 1 supplier in the area of
systems integration and supply of total engine management system (EMS)
solutions, to the worldwide automotive market for OCP fuel systems.
    The MOU also provides for joint marketing to demonstrate the unique
capability of the conventional OCP direct fuel injection system to meet the
specific challenges of market sectors in different global regions.  In the
U.S. market, the proposed direct fuel injection system takes advantage of
Delphi's extensive EMS capabilities and the inherently low emissions output
capability of the OCP direct fuel injection system.  The system has the
potential to meet future Super Ultra Low Emission Vehicle (SULEV) standards
while maximizing fuel economy.
    Successful demonstration of this combined capability will in particular
provide U.S. automakers the opportunity to introduce state of the art direct
fuel injection technology.
    Scott Bailey, director of Delphi Energy & Chassis Systems engineering
said, "This exciting new technology offers great potential as a competitive
alternative to direct injection systems already applied in Japanese and
European markets and it complements Delphi's existing direct injection
portfolio."
    Orbital CEO Kim Schlunke said, "The prospect of Delphi applying its vast
EMS capabilities to the inherently low emissions capabilities of the OCP
system is very exciting.  A successful demonstration of these capabilities
will create significant near-term commercialization opportunities for the
companies."
    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a multi-
national leader in transportation and mobile electronics components and
systems technology.  Delphi's three business sectors -- Dynamics & Propulsion;
Safety, Thermal & Electrical Architecture; and Electronics & Mobile
Communication -- provide comprehensive product solutions to complex customer
needs.  Delphi has approximately 214,200 employees, and operates 178 wholly
owned manufacturing sites, 41 joint ventures, 53 customer centers and sales
offices and 27 technical centers in 39 countries.  Regional headquarters are
located in Paris, Tokyo and Sao Paulo, Brazil.  Delphi can be found on the
Internet at http://www.delphiauto.com .
    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.