Antonov is pleased to announce that on 9th September 2004 it completed a placing
("the Placing") of 800,000 new ordinary shares of 5p each in the capital of the
Company at a price of Euro 0.45 per share raising Euro 360,000 to fund the
continued working capital of the Antonov business. The shares were subscribed
for by Zuidschroef B.V., a Dutch investment holding company.

Under the terms of the Placing for every two shares placed Zuidschroef B.V will
receive one warrant to subscribe for a further share at Euro 0.60 per share,
exercisable until 30th September 2006.

In addition, Antonov is pleased to announce that the Dutch/German investment
group from whom it secured funding of Euro 1,250,000 through a convertible loan
note facility granted in November 2003, which has been fully drawn down by the
Company, has requested that the full amount of the loan be converted into new
ordinary shares of 5p each in the capital of the Company. Under the terms of the
convertible loan note facility this will require the Company to issue 4,166,667
new shares.

In the case of both of the above-mentioned placings the shares issued will rank
pari passu in all respects with existing ordinary shares of the Company.
Application for these shares to be admitted to trading on the Alternative
Investment Market of the London Stock Exchange will be made at the earliest
practicable opportunity.

Roumen Antonov, chairman, commented:

"The placing announced today will assure the working capital of the Company as
it accelerates the commercialisation of its technology, with a working prototype
of its innovative AAD gearbox to be demonstrated with our tier 1 partner at the
Paris motor show later this month. The decision of the Dutch/German investment
group to convert the full amount of their loan into shares demonstrates their
ongoing commitment to the Company."