One of China's largest scooter manufacturers, China Hainan Sundiro Motorcycle Co Ltd (Sundiro) has signed an agreement which finalizes the terms of a technical co-operation and licensing arrangement with Orbital Engine Corporation Ltd (NYSE: OE). Final documentation is currently being prepared for submission to the Chinese authorities for approval. Australia's Federal Minister for the Environment and Heritage, Senator Robert Hill and China's Minister for the Environment, Mr. Xie Zhenhua were on hand to witness the signing of this agreement.

"The Chinese have shown their commitment to reducing pollution by supporting Orbital's environmentally friendly technology. Scooters using this direct fuel injection system produce an 80% reduction in noxious emissions and reduce fuel consumption by 45%," said Senator Hill. "The fuel consumption improvements directly translate to reductions in the production of the key greenhouse gas, carbon dioxide. Orbital's technology is addressing both the toxic street level emissions as well as ozone layer damaging greenhouse gases."

"Sundiro has taken a lead position in the Chinese market by selecting Orbital's technology," said Mr. Ken Johnsen, Orbital's Executive Director of Business Development. "The adoption of Orbital technology by the Chinese motorcycle industry, which currently produces over 10 million units annually, has the potential to have a profound effect on emissions levels in the major cities."

The agreement follows Sundiro's October 1998 public commitment to apply Orbital's direct fuel injection system to their scooters. The agreement is a precursor to volume production of the scooters. It is expected the first product will be on the road in late 2000. Sundiro produced in excess of half a million scooters in 1999 and is firmly established as a technology leader in the Chinese market. The company has large manufacturing facilities in Shanghai and on Hainan Island in south China.

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.