AIRCRAFT BUILDING CORPORATION IRKUT PLACES FIRST-EVER SHARES WITH SHARE MARKETS

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MOSCOW, MARCH 29, 2004. (RIA NOVOSTI). -- The Russian aircraft building corporation Irkut has, for the first time in the history of the Russian military-industrial complex, placed shares with domestic share markets.

"I'd like to laud above all the MDM-bank and the Irkut Corp. management for having risen from the level of managers to proprietors. For the state it is the first swallow", Boris Aleshin, head of the Russian Federal Agency for Industry, told the press conference.

"We have found the compromise between the interests of the state and private business", he said.

Aleshin voiced confidence that other Russian aircraft manufacturers will follow the Irkut example.

Boris Aleshin stressed that the state has okayed the transaction, observing all the legislative canons in the world aircraft-making industry.

"The placing of Irkut shares with the Moscow Interbank Currency Exchange and the Russian Trade System is unprecedented", Vladimir Rashevski, chairman of the board of the MDM-bank, said.

For other Russian companies this can become the model of entering share capital markets from the viewpoint of the transaction technology and its financial results.

Proceeding from the established price, the cost of the Irkut block of shares bought by investors will be 127 million dollars. The Irkut proposal is the first major project of placing shares with the Russian share market.

All of the Irkut-proposed 204.7 million shares will be placed with the investors at the 0.62-dollar per share cost.

"We as the general managers have undertaken a huge responsibility before the state, for which the aircraft-making industry has eventually assumed priority", Irkut Corp. president Alexei Fedotov said. "We are glad that our shares have provoked so much interest. Our further efforts will be directed above all towards increasing our company's cost for shareholders", he said.

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