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29 June 2004
ORBITAL MOVES AMERICAN DEPOSITORY
SHARES TO THE OTC BULLETIN BOARD
PERTH, AUSTRALIA: Orbital Engine Corporation
Limited today announced that it intends to move the trading of its
American Depository Shares (ADSs) in the United States to the OTC
Bulletin Board (OTCBB), following the decision of the New York Stock
Exchange (NYSE) to no longer provide trading for the ADSs, from
1st July 2004.
There is no change to the Company's listing on the Australian Stock
Exchange (ASX).
The Chief Executive Officer of Orbital, Mr
Peter Cook commented: "The NYSE decision has been made on the
basis of Orbital's relatively small size. We are simply too small
to meet the NYSE's internal requirements of market capitalisation
and shareholders' equity. The NYSE has no concern over any matters
of corporate governance, underlying trading, prospects or reporting.
Our paramount objective has been to provide an alternative, effective
and seamless trading market for our American ADS holders."
Orbital has been operating for the last eighteen
months with the NYSE, under a plan to meet their listing requirements.
Despite progress, these have not been totally met within the required
time frame.
"Despite the excellent relationship we
have with the NYSE, the increased regulatory environment has created
a complexity and cost in being dual listed on both the ASX and the
NYSE, that is not justifiable for such a small company. Other companies,
most much larger than ourselves, have seen the need to take this
step. However, our underlying commercial prospects are not changed
by this decision and the improved financial position we have recently
reported continues to add value for Orbital's shareholders,"
Mr. Cook added.
For any US shareholder, the process for buying
or selling Orbital's ADSs remains unchanged, simply by advising
their normal stock broker of their requirements. There is no need
to deal directly with OTCBB, although quotations for securities
can be obtained from its web site. Susquehanna Specialists Inc will
be Orbital's initial market maker on the OTCBB and the Bank of New
York will continue to administer Orbital's ADS facility. Both organisations
have had a long association with Orbital's securities in the USA.
For those holders of ADSs who may be unfamiliar with the OTCBB,
it is a NASDAQ operated quotation service for securities not listed
on a US national exchange. Further information can be obtained from
the OTCBB web site at www.otcbb.com or from Orbital's web site at
www.orbeng.com
Outlook
In February 2004 Orbital announced a A$2.1
million profit for the half year ended 31 December 2003, including
a foreign exchange gain of A$0.8 million and indicated that the
2nd half would deliver a similar result, excluding any foreign exchange
impact.
Orbital expects to report a result for the
year ending 30 June 2004 in the range of A$3.0 million to A$3.4
million. The forecast includes a second half year to date foreign
exchange loss of A$0.5 million, due to the strengthening US dollar.
Excluding foreign exchange the 2nd half result
will exceed the 1st half highlighting Orbital's improved financial
performance. Orbital remains in a strong cash position. Cash on
hand at 30 June is expected to be approximately A$12.0 million,
also consistent with previous advice to the market.
Forward Looking Statements
This press 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 press release to reflect
events or circumstances after the date of this release.
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