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Orbital and Saab Form Alliance to Boost Efficiency & Reduce Emissions

30 June 2000

    PERTH, Australia - Orbital Engine Corporation and Saab Automobiles AB have 
formally established a technology alliance directed at the industrialisation and 
commercial release of Saab engines using Orbital's direct fuel injection 
technology.

    Saab Automotive is a wholly-owned subsidiary of General Motors and is a
leader in providing its customers world-wide with innovative environmentally
sensitive technologies.  General Motors has been a licensee of Orbital since
1989.

    Orbital's direct fuel injection systems substantially boosts the efficiency 
of gasoline internal combustion engines, by reducing exhaust emissions and 
improving fuel economy.

    Orbital CEO Kim Schlunke said the Saab agreement significantly added to
the momentum Orbital was achieving in the commercial development of its direct
fuel injection systems.

    "In the marine and motorcycle markets, manufacturers are already using
Orbital technology on production engines, and we anticipate further product
launches over the coming 12 months.

    "I am confident that we will achieve similar levels of success in the
worldwide automotive market, in partnership with leading companies like Saab."

    The benefits of applying Orbital technology to conventional four-stroke
automotive engines have been consistently demonstrated by a number of test
vehicles developed independently at Orbital.

    Independent testing has verified the ability of the vehicle to achieve the
strict European Stage 4 emission limits, due to apply in the year 2005, while
also achieving a 13% improvement in fuel economy over an identical vehicle
fitted with a conventional fuel injection system.  Importantly, the test
vehicle has been able to achieve these results using a catalyst system
significantly cheaper than those required by competing direct injection
systems.

    Saab is headquartered in Sweden, and is active in more than 50 countries
worldwide.  It has more than 10,000 employees and sold 131,000 vehicles in
1999.

    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.