IRKUT CORPORATION AND EADS HAVE CLOSED DEAL TO PURCHASE 10% STAKE OF IRKUT

On December 16, 2005, IRKUT Corporation and EADS (European Aeronautic Defence and Space Company) have closed the deal by signing a sale contract to purchase 10% of IRKUT stake by EADS, which makes out as many as 97 813 162 shares. Amount of the transaction totaled USD 65.3 million.

In result of the deal, the Parties agreed to include Oleg Vlasov, OOO “EADS” Director General, into IRKUT Board of Directors, as well as signed an Agreement of Cooperation defining new principles of two companies’ interaction.

Cooperation of IRKUT and EADS started in 2002 by signing a Strategic Partnership Agreement at ILA International Air Show. Within the frames of the agreement, “EADS IRKUT Seaplane” joint venture was established in 2005 to carry out marketing of the Be-200 multi-purpose amphibian in the international market and provide its certification according to the international standards. Further more, in December 2004, IRKUT and Airbus, a subsidiary of EADS, signed a contract for manufacture of “A320 family” components at production facilities of Irkutsk Aviation Plant (IRKUT main processing center). Currently, both companies are in process of negotiations to extend the amount of products to be manufactured in Irkutsk.

Head of the Russian Federal Agency for Industry Boris Alyoshin said that “the deal between IRKUT and EADS is of principal importance for us since it’s the first time in the history of the Russian defence industry when a one of world leading concerns purchased a stake of a Russian aerospace enterprise. We consider this deal to a significant progress towards integration of Russian companies into international aerospace industry”.

According to Oleg Demchenko, President of IRKUT Corporation, “Acquisition of IRKUT shares by EADS is another evidence of our company stability and bright prospectives as well as high reputation of IRKUT with the global aerospace industry. I believe that uniting efforts with EADS we will be able to achieve successful implementation of our joint programs”.

Vadim Vlasov, CEO of OOO EADS, stated: “It is part of the global strategy of EADS to form partnerships with leading aerospace companies world wide. The Russian aerospace is currently preparing for consolidation and international partnerships. EADS and Irkut are both leaders in global cooperation and committed to achieve further success on the world market together.”

16.12.05