Antonov plc ("Antonov" or the "Company"), the developer of the Antonov Automatic Drive (AAD), announces that it has completed the initial development phase for a new automatic gearbox, to be known as the DCA ("Dual Clutch Antonov"). The DCA encompasses fundamental new inventions for which patent protection has been applied. It is designed for larger (+2 litre) automatic drive motor vehicles and can have six, seven or even more speeds if required.

The DCA is now in the prototype development stage. The Company will launch a prototype fitted in a car at the Paris Motor Show in late September 2004.

The Company is now positioned to offer the motor industry a complete range of automatic gearboxes, i.e.:

· the AAD range for smaller cars with torque capacities of less than 250 NM’s.

· the DCA range for motor vehicle with torque capacities greater than 250 NM’s.

The new automatic gearbox, which is based on a dual clutch design, is expected to be both smaller and lighter than existing offerings. These advantages translate into a wider application base and lower manufacturing costs. The design is also easily adaptable to four-wheel drive applications, which will for the first time allow Antonov to target the expanding SUV market. It is also suitable for installation in high-speed direct injection diesel engined motor vehicles, another rapidly expanding market segment.

As part of the Company’s evolving strategy, the DCA will also be developed as a manual gearbox, again with the option of six, seven or even more speeds. The main attraction of the manual DCA will be its small size and lower weight when compared to existing manual gearboxes. From a manufacturing point of view an important advantage will be the large number of common components that it will share with the automatic DCA, which will positively influence the costs of both units.

Roumen Antonov, the Company’s Chairman, said: "With the launch of the DCA gearbox we will for the first time be targeting the larger car market, an area where automatic gearboxes already predominate. We also expect that automatic dual clutch gearboxes, because of their inherent advances over conventional automatic gearboxes, will increasingly replace conventional gearboxes. This new development therefore strengthens our commercial position considerably and more than doubles our potential customer base".