International Paris Air Show

National Reserve Corporation (NRC) has concluded a number of agreements relative to the delivery of aircrafts and aircraft engines as well as to the financing of the member companies of the NRC Group at the 47th Paris Air Show at Le Bourget Airport near Paris. The total value of these agreements amounts to more than USD 700 million.

On the first day of the Air Show, NRC supported a proposal made by Eurocopter Vostok (a subsidiary of European Aeronautic Defence and Space Company, EADS) and AMT Limited (UK) to establish a company engaged in the leasing of the helicopters manufactured by the Eurocopter group of companies for the CIS and Eastern Europe markets. It is the intention of the parties, once the enterprise establishing procedures are completed and the potential partners will have joined the project, to have the joint venture established by the end of 2007 and to announce "pilot" business transactions in Russia and the Ukraine.

NRC and International Aero Engines AG (IAE) have entered into an agreement on June 18, considered to be among the most important agreements signed at the Show, for the supply of 40 modern aircraft engines of the V 2500 series for 20 Airbuses A 320 and ? 321 under the existing agreement between Airbus and Alpstream AG, a subsidiary of NRC in Switzerland, with effective date from 2009.

At the same time, consultations were conducted with Ilyushin Finance Co. OAO (IFC) (NRC holds 26% of the shares) with a view to extending the supply of these aircraft engines and incorporating them into the TU 204 aircraft configuration. The resulting agreement will be ready for signing in August 2007 during the MAKS-2007 Moscow Air Show.

IFC and Blue Wings AG (Germany, Dusseldorf, NRC ZAO holding 48% of the shares) have completed at the Paris Air Show at Le Bourget Airport the preliminary stage of negotiations for the supply of 5 Russian aircrafts (TU 204) in 2009. The resulting agreement will be drafted at the MAKS Russian Show. Joern Hellwig, General Manager of Blue Wings AG, disclosed the company plans relative to the extension of the aircraft fleet in the nearest future: The Company plans to increase its Airbus A 320 fleet to 12 aircrafts before the end of 2008. At the moment, the Company operates 6 aircrafts of this type.

At the end of the week, NRC has signed the agreements relative to the financing of its aircraft leasing projects. Standard Bank (London) has accepted the mandate of arranging the financing of the aircrafts operated by Blue Wings AG for a period of 12 years. Deutsche Bank (London) which is interested in developing the aircraft leasing business in Russia is analysing the option of financing certain NRC projects in this field, as well as a number of common projects envisaged by NRC and IFC.

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