AW And Oboronprom Declare Launch of Cooperation in Heli Business

(May 16, 2008) -- Within the frame work of the first Moscow International Exhibition HeliRussia-2008 Oboronprom Corporation and AgustaWestland, a Finmeccanica company, declare commencement of the large-scale & long-term co-operation in the helicopter business. The basis for the cooperation was the Letter of Intent signed in summer 2007, providing for promotion of relations of the two companies in various sectors of the helicopter business. Oboronprom Corporation and AgustaWestland have agreed upon a stage-wise consolidation of the two companies' cooperation.

The first step resulted in the signing in May 2008 of a long-term contract and a distribution agreement between AgustaWestland, Oboronprom Corporation and Loyd's Investments Corp. The agreement provides for the acquisition of AgustaWestland helicopters to the approximate value of EUR 450 million up to 2012. Commitments for 2008 includes 10 helicopters to the total value of around EUR 65 million comprising two AW119 Ke single engine, two AW109 Power, four Grand light twin and two AW139 medium twin helicopters.

The agreement also provides for marketing of AgustaWestland helicopters in Russia as well as in the majority of CIS helicopter markets for various applications, e.g. in the VIP market segment, corporate-transport, oil/energy activity support as well as EMS. The second stage of the cooperation will be the establishment by Oboronprom Corporation and AgustaWestland of a number of maintenance centers for AgustaWestland helicopters in Russia.

Oboronprom Corporation and AgustaWestland envisage that the third stage of the evolving cooperation will be a joint production agreement of AgustaWestland helicopters in Russia for both domestic and international markets. A joint team of experts is working in order to define how to best implement this project and will select a production site in the European part of Russia. The helicopters produced in Russia will be marketed both within Russia and CIS area, and through AgustaWestland all over the world.

Giuseppe Orsi, Chief Executive Officer, AgustaWestland: "We are delighted to have launched this multifaceted cooperation with Oboronprom Corporation and we expect it to grow in the future and facilitate development of high-technology industries in our countries. We see the Russian and CIS markets as very important with the potential to generate significant future business opportunities. Already, prior to this agreement, we have won orders for 14 AgustaWestland VIP-configured helicopters from various Russian customers, comprising five AW119 Ke, five AW109 Power and four Grand helicopters".

Andrey Reus, General Director, Oboronprom Corporation: "Multilayer cooperation with AgustaWestland means involvement of the Russian helicopter industry into the international aviation cooperation system, a possibility of sharing expertise and technologies in helicopter production and high servicing standards, as well as boosts marketing of the helicopters produced in Russia throughout the world".

Source : AgustaWestland

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