Results of major review

ASX AND MEDIA RELEASE: 27 May, 2002
FOR IMMEDIATE RELEASE
ASX Code: OEC
NYSE Code: OE
Berlin Code: ORE
Frankfurt Code: OREA
Orbitai Announces Board Changes and Major Reorganisation
PERTH, AUSTRALIA OrbitalEngineCorporationtodayannounced that
following a
detailedreviewofoperations by theBoardand CEO, PeterCook,aseries of
Board,
management and operational changes, including a level of staff
reductions, have been put
in place.
These changes, which were foreshadowed last week, are part of the
Company's campaign
to be cash neutral next financial year, to be more commercially
focused and to reflect the
Company'sprogressionfromaphase of researchanddevelopment to one of
commercialisation of its air assisted direct injection fuel system.
The reorganisation will
result in a company of a reduced size and well-equipped to support
its commercialisation
pipeline,
The Board has determined that a complement of five members is now a
more appropriate
scaleforitsownactivitiesandaccordingly three
longstandingBoardmembers,Kim
Schtunke, Alan Castleman and Robin Forbes, have retired with
immediate effect.
Orbital Chairman Mr Ross Kelly paid tribute to the Board members
stating that "All have
contributed significantly to the business and it has been a great
pleasure to have served
with such a committed Board. I would particulariy like to thank
former CEO Kim Schlunke
whohas contributed much to Orbital's technical innovation and getting
the first products
intomarket.''MrSchlunkehas also resignedfrom his
executivepositionwith Orbital
although will be available to complete certain projects for the
Company.
Orbital also announced it wilt strengthen the delivery of its
engineering resources with the
appointment of Dr Rod Houston to the newly-created position of
Director of Engineering.
Dr Houston, with j 4 years of international industry experience, wilt
focus on advancing and
delivering Orbital's technology as well as increasing professional
engineering contact with
customers.
Ramon Newmann wilt head Orbital's Automotive division and operate in
close proximity to
themajorcustomersout of Orbital's small UK
office.Afterseveralyearsexperiencein
Europe, Mr Newmann has developed a close working relationship with
major customers
and suppliers in the automotive sector.
DeanaCesariwillheadOrbital'sMarineandRecreation Division, filling
thevacancy
created by the appointment of Mark Norman as President of Synerject,
Orbital's 5050 joint
venturewithSiemens VI30 Automotive.Orbital'sCFO,KeithHalliwett,will
join theSynerject Board. John Beech wilt take up the position of
Commercial Director, Marine and
Recreation and wilt be basedout of Orbital's US offices in Virginia,
USA. Thechanges
reflectthecloserworkingrelationshipbetweenthebusinesses in
accessingthe non-
automotive market and point to a more streamlined operation overall.
Thirty-fivestaffmembers,predominantlyfromengineeringbut also
fromadministration,
financeandmanagement,haveacceptedredundancies. Orbital retains j40
staffworld-
wide and is now appropriately sized to meet its forecast level of
activity.
Mr Cooksaid "1 wish to express my appreciation to all
stafffortheireffortsand
contribution.Thepersonalimpact
ontheindividualsandfamiliesdirectlyinvolved is
distressing but an essentialpartofthestepsneeded to meetourcommitment
to
shareholdersandmaintainour focus on, andaccountability for, profitin
all business
areas."
"We must ensure that Orbital has the financial and human resources
necessary to convert
a number of opportunitiesavailable to it in theautomotive, marine,
recreationaland
motorcycle markets. The steps we have taken over the past few days
were necessary to
ensure that we achieve this goal."
Orbital is a hading international developer of engine technologies
using direct in-cyhder fuel
injection and lean-burn systems for enhanced fuel economy and lower
emissions. The company
serves the worldwide aufomofiw, marine, recreational and motorcycle
markets. Headquarfered in
Perth, Western Australia, Orbital stock is traded on the Australian
Stock Exchange (OEC), fhe New
York Sfock Exchange (OE) as well as the Berlin (ORE) and Frankfuri
(OREA) Exchanges.