VOLGA-DNEPR GROUP - AVIASTAR-SP:NEW STAGE OF COOPERATION

Ulyanovsk, June 11 2003. - Annual general meeting of the Aviastar-SP shareholders took place in Ulyanovsk. Victor Mikhailov was re-elected as a general director and a new board of directors was also elected. Sergey Kirienko, plenipotentiary representative of the Russian President in the Privoljskiy federal region, was nominated chairman of the board. Among other members of the board are Igor Shevchuk, Tupolev president; Valeri Voskoboinikov, deputy general director of the Russian aerospace agency; Aleksey Isaikin, president of Volga-Dnepr Group; Vladimir Shamanov, governor of the Ulyanovsk region; Victor Mikhailov, general director of Aviastar-SP, and others.

"In my opinion, a newly-elected board of directors is the strongest for the last years. The team of professional managers led by its chairman Sergey Kirienko, is capable to solve many problems that the aircraft manufacturing plant is facing today. Combination of precious experience of re-elected general director Victor Mikhailov, from one side, and energy of the newly-elected board of professional managers, from the other, will certainly provide positive results. Common understanding of management procedures by the members of the board of directors will allow to give a go-ahead to start forming a new management team by selecting from the most highly-qualified specialists in different areas, including foreign managers. Experience of Volga-Dnepr Group in this area proves high efficiency of such steps", said Aleksey Isaikin, a member of Aviastar-SP board of directors and Volga-Dnepr Group president.

For its history Volga-Dnepr has been closely connected with the Ulyanovsk aircraft manufacturing facility. Aviastar-SP is the supplier of unique An-124-100 aircraft, a major freighter in Volga-Dnepr fleet, the plant provides aircraft modernisation and airworthiness works. Aviastar-SP development and current situation of the aircraft manufacturing plant has a strategic influence on Volga-Dnepr activities. A problem of high level of management meeting all international standards becomes crucial for Aviastar-SP in the conditions of a large export contract.

That's why two months earlier Volga-Dnepr management team working in marketing, economy and finance, post-sale aircraft maintenance started for work in the Aviastar-SP to work out a long-term development strategy. The programme was presented and approved at the board of directors. It will become a basis for further development of the strategy taking into consideration remarks and comments from members of the board.

The fact that Aleksey Isaikin has joined the Aviastar-SP board of directors and Volga-Dnepr management team has started working in the aircraft manufacturing plant is a prove that both companies have a common strategy aimed at further developing and increasing competitiveness of the Russian civil aviation and aviation industry on the domestic and international markets.