Chongqing EFA Transmission Co., Ltd. ("EFA"), the 50/50 joint venture company between Chongqing Landai Industry Co., Ltd. and Antonov, has signed a commitment to a Purchase Agreement with LIFAN Motors for a minimum of 20,000 units of the TX-6 automatic transmission. This is the minimum number to be supplied to LIFAN in the calendar year 2012.

LIFAN Motors, which is part of the LIFAN Group based in Chongqing, will provide EFA with 10 LIFAN LF620 vehicles free of charge for the installation and calibration of the TX-6 transmission.

The minimum quantity of the TX-6 transmission can go up to 5,000 units per month.

Being EFA's first customer LIFAN will receive a special treatment as far as mechanical installation and vehicle calibration of the TX-6 transmission into the LF620 vehicle are concerned.

The level of acceptance and the drivability of the TX-6 transmission in the present test vehicles being high, the agreement is as usual conditional on the satisfactory acceptance by LIFAN Motors of the drivability and durability performance of the installation of the TX-6 transmission within the LIFAN Motors'LF620 vehicle application.

Mr Ni Hongfu, President of LIFAN's Powertrain Division said:

"We have been working with Antonov for some time, and after seeing the TX-6 transmission successfully installed into our LF620 vehicle, we are now happy to make a commitment to purchase 20,000 transmissions during 2012 for our LF620 programme. This will make this vehicle much more marketable to both our domestic and export customers."

Jos E. Haag, Antonov's Chairman and CEO, commented:

"I am very happy to have come now to the point where we can be commercially successful with Antonov's TX-6 in China. It is excellent that we have the first agreement with LIFAN, the company we have already two ongoing projects with and which is one of the OEM's in the automotive industry in China with a strong growth. Furthermore it is great to have the first customer in Chongqing, the home of Landai as well as EFA. Now that we have secured the first agreement, we are in a very good position to win additional clients for the TX-6."