Ann: Capital Raising and Acquisition Update , page-2

Seems like it was a very sensible thing to do to withdraw cap rasing given sp and market conditions.

Note: expecting a profit in FY 10 of over $4mil so might possibly get a lift in sp after eoy report. Steady as she goes.

Orbital Corporation Limited (OEC) wishes to advise that as a result of volatile conditions on global equity
markets it has withdrawn its proposed capital raising.
Orbital has also decided not to proceed with a proposed acquisition of a complementary business in the
alternative fuels systems sector, which was to be funded by the capital raising.
The Board of Orbital believes that it would not have been in the interests of shareholders to proceed with
the capital raising and acquisition given prevailing conditions and general uncertainty in equity markets.
Orbital will assess opportunities to grow the business through acquisition as a matter of course and will
continue to apply strict and prudent criteria in assessing those opportunities.
Orbital CEO Terry Stinson said the withdrawal of the capital raising and acquisition was unfortunate but that
the company would continue to develop its existing businesses and investigate opportunities to grow the
group in line with its stated growth strategy.
In FY10, Orbital expects to report a profit after tax in the range $4.3 million to $4.7 million, including a non
cash profit of $7.7 million relating to the restructure of a long-term loan from the Western Australian
Government.
In the near term, Orbital will be focusing on generating an operating profit in FY11 along with positive cash
flow from our existing business streams, said Mr Stinson.
Orbital Chairman Peter Day said the Board carefully considered whether to proceed with the capital raising
and acquisition.
While we felt the acquisition represented a strong strategic fit for Orbital, the prevailing market conditions
meant the timing was not conducive to completing the capital raising on a satisfactory basis, Mr Day said.