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26th
June 2008
ORBITAL
GAS PRODUCTS LAUNCHED IN SYDNEY WITH COMPLETION OF BORAL ALTERNATIVE
FUEL SYSTEMS ACQUISITION
- Orbital Corporation completes acquisition of Sydney-based
Tier 1 LPG fuel systems supplier, Boral Alternative Fuel Systems,
for A$1.6 million.
- Business to commence trading as Orbital Gas Products (OGP).
- Acquisition is part of Orbital's go-forward strategy to expand
into gaseous fuels businesses.
- Low-risk entry to rapidly growing Australian and New Zealand
alternative fuel system markets.
SYDNEY, AUSTRALIA
- 26 June 2008 - International
clean energy technology group, Orbital Corporation Limited (ASX:
OEC - "Orbital"), is pleased to advise that it has completed
the acquisition of the leading Sydney-based LPG fuel systems supplier,
Boral Alternative Fuel Systems ("BAFS"), with the business
to commence trading as "Orbital Gas Products".
The acquisition of BAFS - which is a Tier One
supplier to the global automotive group, Ford Motor Corporation
- marks a significant expansion by Orbital into the rapidly growing
Australian and New Zealand alternative fuel system markets
All conditions precedent have been satisfied
and Orbital Corporation officially completed the acquisition of
the BAFS operation, located in Arndell Park in Sydney's western
suburbs today.
The business, which currently generates annual
revenue of approximately A$6 million, will trade under the new name
"Orbital Gas Products" (OGP) and is expected to be earnings
per share accretive for Orbital.
Luke Colzato, Manager for Boral Alternate Fuel
Systems, said: "The staff and I are excited about the change
and we are looking forward to joining the Orbital team today. Orbital
brings the engine and fuel systems experience required to successfully
introduce greenhouse friendly reliable Euro IV Autogas systems to
the OEM's and Aftermarket businesses."
Commenting on the acquisition, Orbital's CEO,
Mr Terry Stinson, said: "The acquisition of the BAFS LPG
systems supply business to our portfolio is part of our strategy
to grow the Orbital business through acquisitions that focus on
improving the environment and helping our customers save energy.
"The combination of vast quantities
of readily available LPG, the Federal Government subsidy for the
conversion of petrol based fuel systems to LPG and the increasing
price of petrol are creating a strong market pull for an improved
LPG product line. Using Orbital's engine and fuel system knowledge
and experience, combined with the Boral acquisition, we will be
able to expand our revenue base, increase profits and secure better
returns for our shareholders," he continued.
"Through OGP, Orbital will continue
to deliver innovative, energy efficient, environmentally friendly
engine and related technologies and in future secure a significant
position in the alternative fuels market," he added.
Forward Looking Statements
This release includes forward-looking statements that involve risks
and uncertainties. These forward-looking statements are based upon
management's expectations and beliefs concerning future events.
Forward-looking statements are necessarily subject to risks, uncertainties
and other factors, many of which are outside the control of the
Company, that could cause actual results to differ materially from
such statements. Actual results and events may differ significantly
from those projected in the forward-looking statements as a result
of a number of factors including, but not limited to, those detailed
from time to time in the Company's Form 20-F filings with the US
Securities and Exchange Commission. Orbital makes no undertaking
to subsequently update or revise the forward-looking statements
made in this release to reflect events or circumstances after the
date of this release.
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