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.
OEC Price at posting:
0.0¢ Sentiment: None Disclosure: Held