Issue of Equity
The Company announces that at a board meeting held today, 800,764 ordinary shares of 20p each were allotted at prices ranging from €1.43 to €1.65 per share under the terms of existing convertible loan facility arrangements dated 21 January and 7 June 2005 and also as a result of a debt to equity swap arrangement with certain creditors. Application will be made at the earliest practicable opportunity for admission of the new ordinary shares to trading on the Alternative Investment Market of the London Stock Exchange and with Euronext Amsterdam.

The enlarged issued share capital of the Company now consists of 30,341,889 ordinary shares of 20p each.

As was reported in the Company's interim results on 30th September 2005 the Company's balance sheet showed a negative equity position at 30th June 2005. This position reflects the accounting treatment for convertible loan note stock as a liability as required under IFRS, which the Company adopted for the first time for its recent interim results.

The Directors are confident that the loan note holders will convert these instruments into equity and since 30th June 2005 1,008,261 shares have been issued pursuant to such conversions.

The Company has already begun discussions with the holders of loan notes issued under the existing convertible loan facility arrangements dated 21 January and 7 June 2005 with a view to varying the conditions thereof such that the Company can in its 2005 year end financial statements account for these as equity under IFRS.

Following today's issue of shares together with the above-mentioned conversion of convertible loan notes into equity the Company has now returned to a positive equity position.
For further information, please contact:
David Bovell, Finance Director
Antonov plc Tel: 00 31 10 412 60 46
Richard Evans
Brewin Dolphin Securities Ltd. Tel: 00 44 161 214 5547