MANAGERS OF VOLGA-DNEPR GROUP IN THE AVIASTAR-SP MANAGING TEAM:FIRST RESULTS

June 4 2003, Ulyanovsk (Russia). - Two months has passed since several leading managers of Volga-Dnepr Group in finance and economy, marketing, development strategy, post-sale maintenance service, quality assurance started to work in the Aviastar-SP managing team.

Delegation of Volga-Dnepr specialists to Aviastar-SP management is a first step in consolidating efforts of a manufacturer (Aviastar-SP) and an operator (Volga-Dnepr), which has a strategic interest in keeping and developing the existing potential at Ulyanovsk-based aircraft manufacturing facility.

Since its foundation Volga-Dnepr has been closely connected with Ulyanovsk aircraft manufacturing facility, the Group has gained a broad experience in operations on the international market and today is ready to share it. The main task of new managers is to help the largest aircraft manufacturing facility to get to a new management level complying with requirements of the world's aviation market and international financial organisations, to contribute to finding more effective solutions for the problems that Aviastar-SP is facing today.

It's possible today already to talk about first results of the group of managers. The major task for the first two months has been achieved ? a large-scale strategic development programme has been worked out and sent to Aviastar-SP board and share-holders. The programme is aimed at developing the existing Tu-204 and An-124 production lines, putting new types of aircraft into production, and joining co-operation with the international aircraft manufacturers.

According to Victor Mikhailov, general director of the aircraft manufacturing facility, the management team has succeeded to demonstrate its efficiency for such a short period of time. The strategic development programme has been evaluated and received a positive attitude from Sergey Kirienko, Aviastar-SP board chairman. It will be presented to a newly-elected board of directors on June 10.