Delphi Automotive Systems (NYSE: DPH) and Orbital Engine Corporation (NYSE: OE) announced today they have signed a Memorandum of Understanding (MOU) to cooperate on market development andsupply of direct fuel injection systems for worldwide automotive applications.

Delphi and Orbital have in the recent past cooperated on a number oftechnical programs relating to Orbital's air-assisted direct injection andcombustion technology (the Orbital Combustion Process or OCP), ranging fromcomponent development of Orbital's unique Spark-Plug Injectors, to systemsintegration activities on customer programs.

As a result of this wide-ranging cooperation and the rapidly growingmarket for direct injection systems, the companies have identified near-termmarket opportunities and will focus their combined activities on theconventional OCP direct injection system in order to be in a better positionto capture these opportunities.

The MOU establishes the platform for Delphito apply its extensive capabilities as a Tier 1 supplier in the area ofsystems 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 uniquecapability of the conventional OCP direct fuel injection system to meet thespecific challenges of market sectors in different global regions.

In the U.S. market, the proposed direct fuel injection system takes advantage ofDelphi's extensive EMS capabilities and the inherently low emissions outputcapability of the OCP direct fuel injection system. The system has thepotential to meet future Super Ultra Low Emission Vehicle (SULEV) standardswhile maximizing fuel economy.

Successful demonstration of this combined capability will in particular provide U.S. automakers the opportunity to introduce state of the art directfuel 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 injectionportfolio."

Orbital CEO Kim Schlunke said, "The prospect of Delphi applying its vastEMS capabilities to the inherently low emissions capabilities of the OCP system is very exciting. A successful demonstration of these capabilitieswill 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 andsystems technology.

Delphi's three business sectors -- Dynamics & Propulsion;Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communication -- provide comprehensive product solutions to complex customerneeds. Delphi has approximately 214,200 employees, and operates 178 whollyowned manufacturing sites, 41 joint ventures, 53 customer centers and salesoffices and 27 technical centers in 39 countries. Regional headquarters arelocated in Paris, Tokyo and Sao Paulo, Brazil.

Delphi can be found on theInternet at .

Orbital is a leading international developer of engine technologies usingdirect in-cylinder fuel injection and lean-burn systems for enhanced fueleconomy 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), theNew York Stock Exchange (OE) as well as the Berlin (ORE) and Frankfurt (OREA)Exchanges.

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