· Antonov's TX-6 automatic transmission project has reached a major milestone on the final stages towards production. The first production design transmissions (B-samples) are presently being assembled and tested at Antonov's Warwick facility, followed by vehicle installation and calibration. EFA, the Antonov and Landai Joint Venture, will launch the transmission to Chinese vehicle OEMs in order to secure serious commitments for production volume orders. This means also that having reached B-sample level, EFA will be the organisation to bring the transmission to SOP (start of production in October 2011) and will be a paying customer for the majority of future Antonov activities regarding the TX-6.

· The development of Antonov's 3-speed powershifting transmission for electric and hybrid vehicle applications continues on schedule. Hardware will be available in September and the transmission will be installed into Jaguar's Limo-Green range extending electric vehicle later in the year. A recent Autocar feature announcing the installation of Antonov's 3-speed transmission into the Jaguar vehicle has raised significant interest in the market and has increased the potential for commercial opportunities for this product.

· Antonov's 2-speed alternator project in conjunction with Prestolite and the MoD also continues on schedule. Increased business development of this product and the recent exhibition of this technology at the DVD Defence Equipment event organised by the MoD has led to several additional opportunities for the commercialisation of this combined Antonov and Prestolite system.

· As part of the revised strategy, Antonov continues to concentrate significant business development activity to the commercial engineering services part of the business. This has led to the winning of several profitable projects, like an epicyclical transmission for an unmanned vehicle for UAV Engines Ltd with military applications.

We will keep the market informed of further progress.