Antonov plc (Antonov or the Company)

Successful fundraising enables final stage development of Antonov
Automatic Drive (AAD) technology
Production of the Antonov 4-speed AAD expected end 2004

Antonov plc is pleased to announce that it has successfully secured Euro 1,050,000 of new funding at Euro 0,70 (48 pence) per share. This funding will support Antonovs development costs associated with its recently announced heads of agreement with a tier 1 manufacturer for its AAD 6-speed technology. Part of the funds raised will also be used to support a separate development project not involving the tier 1 partner. Brief details of the two projects, both of whos budgeted costs are fully covered by the fundraising, are as follows:

- the design and manufacture of six prototype AAD 6-speed gearboxes for delivery to the tier 1 partner; and

- final development work on the 4-speed AAD, which Antonov expects will lead to initial series production of this gearbox before the end of 2004. Antonov will announce further details about this development in due course.

The fund raising, via a loan note facility is being supported by the same Dutch/German investment Group that underpinned the Companys November 2003 fundraising.

Antonov may draw down the loan, which bears interest of 7.5% per annum, in agreed instalments. The first such draw down is expected almost immediately and the final draw down must be made by 30 September 2004. The loan note may be converted into ordinary Antonov shares, based on a conversion price of Euro 0.70 per share, in defined circumstances at the option of either Antonov or the lender at any time after 30 September 2004. The loan note is repayable at the option of either Antonov or the lender at any time after 30 March 2005.

The Dutch/German investment group also has the right to subscribe for 2.5 million new ordinary Antonov shares at a price of Euro 0.60 per share at any time during the period ending on 31 March 2006.

Roumen Antonov (Chairman) said:
I am delighted that our Dutch/German investors group has provided rapid and whole hearted support to the Company at this key stage in its development. These new funds will enable Antonov to complete final stage development of both the four and six speed versions of the AAD and brings forward the date when commercial production of both units will begin.