Orbital Powerplant Chosen for Low Cost Russian Vehicle

Apr 01, 2001, 00:00 ET from Orbital Engine Corporation Ltd

    PERTH, Australia, April 1 /PRNewswire/ -- In response to an article
 released overnight on http://just-auto.com, Orbital (NYSE:   OE) (ASX: OEC)
 (Berlin: ORE) (Frankfurt: OREA) today confirmed that Venture Industries Inc, a
 US auto engineering and materials specialist, has selected the direct injected
 two-stroke Orbital Combustion Process (OCP) engine as the powerplant for a
 project to build a mass produced vehicle for the Russian market.  The
 selection follows detailed testing in Moscow of an Orbital supplied prototype
 engine.
     The engine is a derivative of Orbital's 1.2 litre direct injected
 two-stroke, 3-cylinder engine used in the "Genesis" fleet trial.  In 1996
 Orbital released one hundred Ford Festiva vehicles fitted with OCP engines
 into the Australian market to demonstrate the merits of the technology.  The
 fleet accumulated over five million kilometres with strong user acceptance and
 excellent in-field performance.
     Working under the direction of the City of Moscow, Russian car maker OAMO
 ZiL and Venture are planning an investment of US$250 million to manufacture
 150,000 cars and 300,000 engines per year with a start of production targeted
 for 2004.  The extra engines are earmarked for sale to other car manufacturers
 in the region.  OAMO ZiL is a well-established Russian truck and vehicle
 manufacturer with extensive capabilities and production facilities in Moscow.
     "The selection by Venture and ZiL of Orbital's two-stroke direct injection
 technology is a further endorsement of its competitiveness and attractiveness
 in emerging markets", said Mr. Ken Johnsen, Orbital's Executive Director of
 Business Development.
     "As well as the proven performance of the engine, its simplicity and low
 cost is a big attraction in Russia where most cars sell for less than
 US$10,000.  Compared with conventional multi-point fuel injected four-stroke
 automotive engines, an OCP direct inject two-stroke engine can have up to
 40 per cent fewer parts and be up to 30 per cent lower in cost to
 manufacture."
     "Orbital is pleased with the selection of its powertrain and the
 opportunity this presents to launch product in the automotive sector in
 Russia.  While project financing and operational aspects are put into place
 over the next few months, Orbital will be working to secure technology
 transfer and engineering services agreements with these companies to
 facilitate our support of the Russian project."
 
 

SOURCE Orbital Engine Corporation Ltd
    PERTH, Australia, April 1 /PRNewswire/ -- In response to an article
 released overnight on http://just-auto.com, Orbital (NYSE:   OE) (ASX: OEC)
 (Berlin: ORE) (Frankfurt: OREA) today confirmed that Venture Industries Inc, a
 US auto engineering and materials specialist, has selected the direct injected
 two-stroke Orbital Combustion Process (OCP) engine as the powerplant for a
 project to build a mass produced vehicle for the Russian market.  The
 selection follows detailed testing in Moscow of an Orbital supplied prototype
 engine.
     The engine is a derivative of Orbital's 1.2 litre direct injected
 two-stroke, 3-cylinder engine used in the "Genesis" fleet trial.  In 1996
 Orbital released one hundred Ford Festiva vehicles fitted with OCP engines
 into the Australian market to demonstrate the merits of the technology.  The
 fleet accumulated over five million kilometres with strong user acceptance and
 excellent in-field performance.
     Working under the direction of the City of Moscow, Russian car maker OAMO
 ZiL and Venture are planning an investment of US$250 million to manufacture
 150,000 cars and 300,000 engines per year with a start of production targeted
 for 2004.  The extra engines are earmarked for sale to other car manufacturers
 in the region.  OAMO ZiL is a well-established Russian truck and vehicle
 manufacturer with extensive capabilities and production facilities in Moscow.
     "The selection by Venture and ZiL of Orbital's two-stroke direct injection
 technology is a further endorsement of its competitiveness and attractiveness
 in emerging markets", said Mr. Ken Johnsen, Orbital's Executive Director of
 Business Development.
     "As well as the proven performance of the engine, its simplicity and low
 cost is a big attraction in Russia where most cars sell for less than
 US$10,000.  Compared with conventional multi-point fuel injected four-stroke
 automotive engines, an OCP direct inject two-stroke engine can have up to
 40 per cent fewer parts and be up to 30 per cent lower in cost to
 manufacture."
     "Orbital is pleased with the selection of its powertrain and the
 opportunity this presents to launch product in the automotive sector in
 Russia.  While project financing and operational aspects are put into place
 over the next few months, Orbital will be working to secure technology
 transfer and engineering services agreements with these companies to
 facilitate our support of the Russian project."
 
 SOURCE  Orbital Engine Corporation Ltd