Solid $0.5 Million Profit Achieved Despite Economic Slowdown, Rising Australian Dollar

PERTH, Australia, Aug. 20 /PRNewswire-FirstCall/ -- International clean energy technology group, Orbital Corporation Ltd (ASX: OEC - 'Orbital'), has confirmed plans to continue to expand in aligned business sectors -- particularly the rapidly growing Alternative Fuels market -- after today announcing a $0.5 million net annual profit after tax. The result, which was in line with the Company's forecast of a second half and full year 2008 financial year profit, would have been above last year's $1.3 million net profit but for the stronger Australian dollar.

Orbital said today that its bottom line earnings were reduced by approximately $1.2 million due to the rising Australian currency which negatively impacted earnings generated from its US manufacturing joint venture, Synerject, engineering revenue and royalty income.

The profit result was achieved on total revenue of $14.9 million (2007: $15.2 million), with the main contributors being a slightly decreased contribution of $11.7 million from engineering services and increased contribution of $2.7 million from licence and royalty income.

'Despite a generally tough operating environment, we are pleased to have achieved a profit for the year,' said Orbital's newly appointed CEO, Mr Terry Stinson. 'Importantly, we are in a strong financial position with cash on hand of $8.8 million at year-end, which gives us the balance sheet strength to pursue our growth objectives.'

'We have achieved several important strategic goals during the year, including our expansion into the alternative fuels business through the acquisition of Sydney-based Orbital Gas Products,' Mr Stinson commented. 'These growth initiatives will add value in future years and position the Company extremely well in the current environment.'

'The acquisition of OGP marks the first phase of our plans to grow into gaseous fuel technology and develop additional commercial business opportunities,' he said.

'These and other developments in the Liquid Natural Gas (LNG) market provide exciting new growth avenues for Orbital in the current market environment, where demand for alternative fuels technology is rapidly increasing,' Mr Stinson added.