Expansion of Continental and Orbital Alliance

* Reuters is not responsible for the content in this press release.

Mon Mar 30, 2009 5:15am EDT

Continental and Orbital agree on restructured joint venture scope to
accelerate Synerject growth and profits.

Orbital becomes Continental's exclusive representative for specific CNG and
LPG products for passenger cars, transport and mining applications in
Australia and New Zealand.

Synerject pays a special dividend of US$2.25m to each of Orbital and
Continental.

Continental will take a majority interest in Synerject by the purchase of 8%
of Synerject from Orbital.

PERTH, Australia, March 30 /PRNewswire-FirstCall/ -- International clean
energy technology group, Orbital Corporation Limited (ASX: OEC - "Orbital"),
together with Continental Corporation has changed the commercial and ownership
arrangements of their joint venture, Synerject LLC.

Orbital said today that it had settled a long standing arrangement to take up
10% of Synerject shares to maintain a 50:50 joint ownership with Continental
by payment of US$4 million. Further, Continental has agreed to purchase 8% of
Synerject from Orbital for US$4 million and agreed to a series of new
commercial arrangements with Orbital and Synerject.

The key elements of the new arrangements are as follows:

    --  Orbital and Continental plan to expand the scope of Synerject's
        business.
    --  Synerject will be owned 42%, 58% by Orbital and Continental
        respectively.
    --  Synerject will continue to operate as an independent business.
    --  Continental will contribute a North American marine Engine Control
Unit
        business with revenue of US$10m to Synerject.
    --  Synerject's scope will be expanded to include manufacturing and
        supply of CNG products for heavy duty engine and other specialized
        application areas.
    --  With Continental's majority share, Synerject's purchasing
        power will improve significantly with full access to Continental's
        purchasing systems and processes.


    --  Orbital will become the representative for the supply of Continental
LPG
        and CNG fuel supply components such as ECU interface box including
        software, injectors, regulators and fuel rails for passenger cars,
heavy
        duty engine and mining applications in Australia and New Zealand.




Orbital will record a profit after tax of approximately US$1.7 million on the
sale of 8% of Synerject to Continental for US$4 million. Both partners will
receive a dividend of US$2.25 million payable immediately prior to the change
in ownership.

"The new ownership and business relationship is a further evolution of the
long standing relationship with Continental," said Orbital's CEO Terry
Stinson. "Synerject will receive significant benefits by being majority owned
and controlled by Continental and the bottom line improvements will flow to
both shareholders.  We expect this to ultimately show a better overall
financial result for Orbital over the previous arrangement.  This is also in
line with Orbital's strategic plans to expand into alternative fuels," he
added.

Orbital has expanded its long standing alliance with Continental by becoming
the exclusive representative for CNG and LPG systems that utilise
Continental's components in Australia and New Zealand. This will compliment
the recently acquired LPG system supply business (Orbital Gas Products).
Orbital and Continental are discussing further business relationships
particularly in the Australian alternative fuel industry.

"We are very pleased to take a greater interest in the Synerject operations,"
said Torsten Bellon, Director Engine Systems Non-Automotive & Low Cost
Systems.  "We believe that Synerject has great potential particularly in the
Asian motorcycle sector."

Forward Looking Statements
This release includes forward-looking statements that involve risks and
uncertainties. These forward-looking statements are based upon management's
expectations and beliefs concerning future events. Forward-looking statements
are necessarily subject to risks, uncertainties and other factors, many of
which are outside the control of the Company, that could cause actual results
to differ materially from such statements. Actual results and events may
differ significantly from those projected in the forward-looking statements as
a result of a number of factors including, but not limited to, those detailed
from time to time in the Company's Form 20-F filings with the US Securities
and Exchange Commission. Orbital makes no undertaking to subsequently update
or revise the forward-looking statements made in this release to reflect
events or circumstances after the date of this release.

About Continental

With sales exceeding 24 billion euros in 2008, the Continental Corporation is
one of the top automotive suppliers worldwide. As a supplier of brake systems,
systems and components for the powertrain and chassis, instrumentation,
infotainment solutions, vehicle electronics, tires and technical elastomers,
the corporation contributes towards enhanced driving safety and protection of
the global climate. Continental is also a competent partner in networked
automobile communication. The corporation employs nearly 140,000 at
approximately 190 locations in 35 countries.

About Orbital
Orbital is an international developer of engine and related technologies,
providing research, design and development services for the worlds producers
of powertrains and engine management systems for application in motorcycles,
marine and recreational vehicles, automobiles and trucks. Orbital's principal
operations in Perth, Western Australia, provide a world class facility with
capabilities in design, manufacturing, development and testing of engines and
powertrains. Orbital provides its customers with leading edge, world class,
engineering expertise.  Headquartered in Perth, Western Australia, Orbital
stock is traded on the Australian Stock Exchange (OEC) and the OTC Bulletin
Board (OBTLY).

http://www.continental-corporation.com
http://www.orbitalcorp.com.au



SOURCE  Orbital Corporation Limited

Susanne Einzinger, Head of Communications Asia, Continental, +86 21 6080 4551,
susanne.einzinger@continental-corporation.com; or Terry Stinson, CEO, Orbital
Corporation Ltd., +61 8 9441 246, Info@orbitalcorp.com.au
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.