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WALBRO CORPORATION AND ORBITAL ENGINE CORPORATION MODIFY RELATIONSHIP

 CASS CITY, Mich., Jan. 5 /PRNewswire/ -- Walbro Corporation (NASDAQ-NMS: WALB) announced today that it and Orbital Engine Corporation, Ltd., Perth, Western Australia, have reached a new milestone in their long-term, fuel system collaboration.
 Orbital Engine Corporation, Ltd. will acquire Walbro's interest in the fuel injection development and manufacturing joint venture company, Orbital-Walbro Corporation. In exchange for its investment in the joint venture, Walbro will receive shares in Orbital and cash. In addition, Walbro will purchase a license to utilize Orbital's advanced Small Engine Fuel Injection Technology (SEFIS).
 The successful relationship between Orbital and Walbro dates to 1986, and has resulted in the development, for commercial production, of a high-performance, cost-effective, direct-injection system for internal combustion engines.
 In announcing the new relationship, Orbital's chief executive officer, Kim Schlunke, said, "This arrangement is an important step for Orbital because it facilitates licensing and joint venture opportunities with major automotive fuel systems component companies with whom Orbital has been having discussions for some time."
 L.E. Althaver, chairman, president and chief executive officer, Walbro Corporation, stated, "We are pleased with this new arrangement, which allows us to maintain our long-term relationship with Orbital, while opening up new opportunities for Walbro in the manufacture of fuel system components for several important markets. Walbro considers its share ownership in Orbital and the new SEFIS license as a continuing investment in the Orbital technology."
 The SEFIS license provides Walbro with the opportunity to utilize the emissions and fuel economy advantages of Orbital's technology in one of its core markets: small engines for industrial, marine and utility engine applications.
 "In addition, the SEFIS technology has excellent potential for two- cycle engines used in the two-wheel industry," Althaver noted. "This represents a new market for Walbro, one which offers significant growth opportunities as emerging countries seek to improve fuel economy and emissions performance for this important form of transportation."
 The arrangement for the exchange of shares was developed nearly two years ago. Orbital will issue Walbro approximately 3.7 million Ordinary Shares in Orbital Engine Corporation, Ltd. with an approximate market value of $7.8 million and $5.5 million in cash for Walbro's 50-percent interest in Orbital-Walbro Corporation.
 Orbital-Walbro Corporation will become a wholly owned subsidiary of Orbital, with operations based in Cass City, where it has recently relocated to larger premises. Orbital-Walbro is currently involved in producing fuel systems to support Orbital's licensees and Orbital's engine manufacturing operations in Tecumseh, Mich.
 Walbro Corporation is a designer and manufacturer of automotive and small engine fuel system components. Walbro Corporation is headquartered in Cass City, and has subsidiaries and joint ventures throughout the world, including the United States, Mexico, Japan, Singapore, Korea and France. Walbro Corporation common stock is traded on the NASDAQ National Market System under the symbol WALB.
 -0- 1/5/93 R
 /CONTACT: L.E. Althaver, chairman, Walbro Corporation, 517-872-2131/
 (WALB OE)


CO: Walbro Corporation; Orbital Engine Corporation, Ltd.;
 Orbital-Walbro Corporation ST: Michigan IN: AUT SU: TNM


533 01-05-93 14:19 EST SM -- DE022R -- 1983 01/05/93 22:51 EST
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Publication:PR Newswire
Date:Jan 5, 1993
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