June 10, 2009

Antonov Signs Joint Venture Agreement with Landai

Press Release

The Company is pleased to announce the successful conclusion of negotiations to secure a partner for its manufacturing joint venture (“JV”) in China with the signing of an agreement to form a Joint Venture with Chong Qing Landai Industries Co., Ltd. (“Landai”).

Under the terms of the agreement the JV will develop Antonov's 6-speed automatic transmission (“TX-6”) for start of production, planned to begin during the course of 2011. The TX-6 will be manufactured in the JV's facilities, which will provide capacity for a minimum 200,000 transmissions per year. The manufacturing plant will be established at Landai's new site in Chong Qing, reducing the level of investment originally anticipated. Consequently, additional funding will be available to focus on accelerating the development program to achieve production at the earliest possible date.

Each party will hold 50% of the shares in the JV, which will involve investment of RMB 150 million (around Euro 15 million) by each party, totaling RMB 300 million, or approximately Euro 30 million. The registered capital of the JV will be RMB 50 million (around Euro 5 million), of which each party will contribute its RMB 25 million (approximately Euro 2.5 million) share in cash. This funding will be brought into the company as soon as it is legally established, which is expected to occur in the next few weeks.

Landai recorded turnover of USD 70 million in 2008 and employs 1,400 people in the Chong Qing province,. with a well established customer base among Chinese vehicle manufacturers including Geely, Chery, Lifan, YuAn and FAW. It also has established long term partnerships with companies in Iran, India and Korea. Further information on Lan Dai is available at http://en.cqld.com.

Mr Zhu, chairman of Landai, commented: “After visiting the Antonov Technical Centre in Warwick and assessing its technical capabilities and organization, I am very happy to have signed the agreement for the joint venture and look forward to working closely with our new partner”.

Dr. Jos E. Haag, Executive Chairman of Antonov Plc commented: “I am delighted that Antonov is now at the point where we can work towards production with the best possible partner in China, considering that Landai already has good relationships with customers like Lifan, Geely and Chery”.

We will keep the market informed of further progress.

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