RNS Number:7942R
Antonov PLC
06 November 2003


Antonov plc ("the Company" or "Antonov")


Progress of commercial partner negotiations and new convertible loan note
facility


Last June the Company announced that rather than continuing to seek funding from
the stock market, it would seek a major business partner to back the development
of its next-generation six-speed "Antonov Automatic Drive" (AAD).  Antonov
reports that it is in positive and ongoing discussions toward this objective
with a number of Tier 1-gearbox manufacturers and OEMs. However, the need to
involve both Tier 1 manufacturers and the OEM's in this process - which in
itself indicates the depth of interest shown - is proving more time consuming
than anticipated.


The Company has addressed, and is dealing with, a number of engineering queries
raised by both Tier 1 manufacturers and their customers, the major OEMs. The
Company's negotiations with both of these parties have clarified their
requirements to an unprecedented degree. The findings have reinforced Antonov's
view that from both technical and cost perspectives the AAD is the only viable
long-term alternative to a manual gearbox in mass-produced small cars.


Martin Schinzig Antonov's CEO stated that he "expected to be in a position to
report back to shareholders about progress in entering into a
commercial-partnership agreement in the near future".


In order to meet its near term cash requirements Antonov is pleased to announce
that it has secured funding of up to Euro 1,250,000 through a convertible loan
note facility with a Dutch/German investment group.  Antonov may draw down the
loan, which bears interest of 7.5% per annum, in five equal instalments of Euro
250,000 each.  The first such draw down is expected in December 2003 and the
final drawdown must be made by 30 June 2004. The loan note may be converted into
ordinary Antonov shares, based upon the current Amsterdam Stock Exchange price
of Euro 0.30 per share, in defined circumstances at the option of either Antonov
or the lender at any time after 30 June 2004. The loan note is repayable at the
option of either Antonov or the lender at any time after 31 December 2004.


The same Dutch/German investment group also has the right to subscribe for 1.5
million new ordinary Antonov shares as follows:

Number of shares    Subscription price per Share        Option expiry date

          500,000   0.30 Euros                          30 June 2004
          500,000   0.45 Euros                          30 September 2004
          500,000   0.60 Euros                          31 March 2005

Commenting on the fund raising David Bovell Antonov's FD said "while we
previously believed that as a result of commercial progress and cost-cutting
measures the Company would not need to mount another fund raising exercise, our
expectations proved to be overly ambitious. The timing of commercial progress is
largely determined by our customers and not ourselves. We are therefore very
pleased to have secured this funding, especially on such advantageous terms when
compared to previous funding rounds. This fund raising is also introducing an
entirely new group investors in an important marketplace where we have not been
previously represented. At the same time, we are taking other steps to secure
the long-term funding that will see the AAD through to royalty-generating
production".


For further information please contact:

David Bovell (Finance Director) at Antonov plc. - Tel no: 00 31 10 412 6046; or

Mark Brady or Richard Evans at Brewin Dolphin Securities Ltd. - Tel no: 0161 214
5547


ENDS






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