VOLGA-DNEPR REPORTS 48.8% INCREASE IN REVENUES TO US$172 MILLION IN FIRST NINE MONTHS OF 2003

Volga-Dnepr Group, the world's leading outsize and heavyweight cargo airline, has reported a 48.8 per cent increase in revenues to US$172 million for the first nine months of 2003.

In the period ended September 30th 2003, the airline's fleet of Antonov 124-100 freighters transported more than 46,000 tonnes of cargo, a 34 per cent improvement on the same period a year earlier.

Volga-Dnepr Group has now earned a 51 per cent share of the global market for outsize and super-heavy cargo transportation.

The size of the outsize and heavyweight air cargo market over the nine-month period rose by $110 million to an all-time record $338 million, the airline reported.

Commenting on the results, Alexey Isaikin, President of Volga-Dnepr Group, said:

" Our success is the success of the whole managing team and our employees, united today under the one name - Volga-Dnepr Group. We are continuing to improve our competitive advantages, which distinguish Volga-Dnepr from other market players: customer orientation and management professionalism in the Group's strategy realisation in conjunction with the high quality of the products and services we offer."

The sector's record growth since the start of the year is attributed to the high level of demand for Antonov 124-100 services to support humanitarian and peace-making missions to regions all over the world.

As a result of the increased volume of cargo transported on behalf of government organisations worldwide, Volga-Dnepr's strongest route sectors over the nine months were Europe-Middle East (23%), North America-Middle East (14%), and Europe-Asia (10%).

At the same time, Volga-Dnepr Group maintained its leading position in the civil segment of the outsize and super-heavy cargo industry, though this market experienced a considerable reduction over the previous year. Volga-Dnepr's biggest civil customers in 2003 to date include Exxon Mobil, Bedford Group, Lockheed Martin, Ericsson Air Crane, The Boeing Company and Starsem.

The company's strong market position is the result of the high quality of the airline's project fulfilment, supported by the effective work of the Group's offices all over the world and professionalism of Volga-Dnepr's international team.

Under a strategic development plan, Volga-Dnepr is today an international group of companies with offices and subsidiaries all over the world, including the UK, USA, China, Ireland, and UAE.

Volga-Dnepr is the world's leading outsize and heavyweight cargo airline and operates a fleet of nine AN-124-100s, two IL-76s and six Yak-40s. Today, the Group employs over 1200 people worldwide.