Continental and Orbital agree on restructured joint venture scope to accelerate Synerject growth and profits.

Orbital becomes Continental's exclusive representative for specific CNG and LPG products for passenger cars, transport and mining applications in Australia and New Zealand.

Synerject pays a special dividend of US$2.25m to each of Orbital and Continental.

Continental will take a majority interest in Synerject by the purchase of 8% of Synerject from Orbital.

PERTH, Australia, March 30 /PRNewswire-FirstCall/ -- International clean energy technology group, Orbital Corporation Limited (ASX: OEC - 'Orbital'), together with Continental Corporation has changed the commercial and ownership arrangements of their joint venture, Synerject LLC.

Orbital said today that it had settled a long standing arrangement to take up 10% of Synerject shares to maintain a 50:50 joint ownership with Continental by payment of US$4 million. Further, Continental has agreed to purchase 8% of Synerject from Orbital for US$4 million and agreed to a series of new commercial arrangements with Orbital and Synerject.

The key elements of the new arrangements are as follows:

• Orbital and Continental plan to expand the scope of Synerject's business.
• Synerject will be owned 42%, 58% by Orbital and Continental respectively.
• Synerject will continue to operate as an independent business.
• Continental will contribute a North American marine Engine Control Unit business with revenue of US$10m to Synerject.
• Synerject's scope will be expanded to include manufacturing and supply of CNG products for heavy duty engine and other specialized application areas.
• With Continental's majority share, Synerject's purchasing power will improve significantly with full access to Continental's purchasing systems and processes.
• Orbital will become the representative for the supply of Continental LPG and CNG fuel supply components such as ECU interface box including software, injectors, regulators and fuel rails for passenger cars, heavy duty engine and mining applications in Australia and New Zealand.

Orbital will record a profit after tax of approximately US$1.7 million on the sale of 8% of Synerject to Continental for US$4 million.