ANTONOV REVEALS FURTHER DETAILS OF ''OPTION AGREEMENT'' WITH GREAT WALL MOTOR
06 February 2006 - Antonov plc

Following the announcement on the 9 January 2006 that automotive technology company Antonov plc had granted an ''option agreement'' to Great Wall Motor Company Limited (GWM) the board of Antonov has provided additional information relating to this agreement.

Under the terms of the agreement GWM may, at any time prior to the expiration of the six month period, enter into a ''licence agreement'' for the Antonov''s six-speed automatic transmission patents. The terms of the licence agreement will be negotiated reasonably to the satisfaction of GWM.

During the period of the option agreement, Antonov will work with GWM to create a full business plan for the development of the transmission development and its production launch. Antonov will also create transmission designs to GWM specifications.

GWM is one of the largest pick-up truck and SUV manufacturers in China. It currently has production capacity for 170,000 vehicles and 200,000 engines a year at its state-of-the-art facility in Baoding. In its last reported full-year figures, revenue was RMB 3,184,614,000. Profit before tax was RMB 552,969,000.

Mr Wei, Chairman of GWM, commented: ''We are very pleased to have this opportunity to strengthen our involvement with Antonov and the company''s six-speed automatic transmission patents. The collaboration is of great significance to both parties.''

John Moore, CEO of Antonov, commented: ''This is a significant step towards the production application of our six-speed automatic transmission technology. The sale of the option will facilitate our support for GWM and demonstrates their commitment to develop an independent transmission manufacturing capability in China. As a profitable and independent manufacturer, they are uniquely placed to progress this opportunity rapidly and effectively.''

Note to editors: Antonov was founded in 1990 to exploit the driveline inventions of Roumen Antonov. It was listed on the Alternative Investment Market of the London Stock Exchange in May 1995 and the Amsterdam Stock Exchange in 1997. It has invested more than £28 million in automotive research, product development and continuing innovation to bring its inventions to market.

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