Oboronprom Corporation, AgustaWestland Sign Heads of Agreement for AW139 Helicopter Final Assembly in Russia

Released on Tuesday, July 15, 2008

Oboronprom Corporation and AgustaWestland, a Finmeccanica company, have signed a Heads of Agreement at Farnborough-2008 to set up an industrial Joint Venture for the final assembly of the AgustaWestland AW139 civil helicopter in Russia. The agreement has been signed within the framework of the large-scale & long-term co-operation between Oboronprom Corporation and AgustaWestland in the helicopter business, which was announced during the Moscow International Exhibition HeliRussia-2008 in May 2008. The initial step of such co-operation was the signing of a Distribution Agreement between AgustaWestland and Oboronprom Corporation, together with Loyd's Investments Corp., for AgustaWestland civil helicopters in Russia and CIS countries. A second stage is the joint activity of Oboronprom Corporation and AgustaWestland to establish a network of maintenance centres for AgustaWestland products in Russia. The industrial Joint Venture will be set up on a parity basis between the parties involved. The civil AW139 Final Assembly project foresees that the production line will be built in a green-field location in the Moscow area. The civil AW139 produced in Russia will be primarily used to satisfy the requirements of the markets in Russia and CIS countries and - through the AgustaWestland network � for the rest of the world.

"We highly appreciate the outcome of our collaboration with Oboronprom, which has enabled the signing of the Heads of Agreement at Farnborough" said Giuseppe Orsi, Chief Executive Officer, AgustaWestland. "Establishing an AW139 Final Assembly line in Russia will allow us to better satisfy the constantly growing AW139 demand in the commercial market for this helicopter and to further expand our presence in the Russian and CIS civil markets." "Signing of this Agreement features consolidation of the Russian position in the world co-operation system in the aviation sphere. In the framework of this mutually beneficial co-operation the Russian helicopter engineering sector can gain access to the advanced production technologies and high quality standards of the product support. We will strive to expand our collaboration, and by means of localization of production in Russia as well" said Andrey Reus, Director General, Oboronprom.

AW139 � a medium twin helicopter of 6400kg take-off weight, is capable to carry up to 15 passengers. It is used as a corporate-transport and VIP helicopter as well as for offshore, in emergency situations, for rescue and fire-fighting operations. AgustaWestland, a Finmeccanica company, is a major force in commercial and military helicopter markets around the world and offers an unrivalled range of helicopters, training and support solutions to satisfy customer's mission requirements. AgustaWestland's main facilities are located in Italy, the United Kingdom and the United States of America. Oboronprom Corporation is multi-profile industrial investment group, founded in 2002. Major activities of the corporation: helicopter production, engine production, air-defen�e systems and complex radio-electronic systems, leasing.