Le Bourget, June 16, 2005

Dominique Perben, French Minister of Transportation, Equipment, Tourism and the Sea, and Marc Ventre, Chairman and CEO of Snecma, signed a Memorandum of Understanding yesterday at the Paris Air Show, for the French government to support the development of a new jet engine, the SaM146, designed to power regional aircraft with 65 to 95 seats, such as the Russian Regional Jet (RRJ).

Jean-Paul Béchat, Chairman of the Executive Board of the SAFRAN group, was present during the signature, and said: “We are very pleased with this partnership with the aircraft-maker Sukhoi and the engine-maker NPO Saturn. We especially wanted to thank the French government for showing their confidence in us on this new program, which will help strengthen the international reach of our group.”

Financial support from the French government will be in the form of a repayable advance of 140 million euros. The MoU reflects a commitment to expanding collaboration on major aviation programs between France and Russia.

French minister Dominique Perben added: “The signature of this agreement is solid proof of sustained collaboration with the Franco-Russia aviation industry, a sector that creates jobs and fosters exports. This repayable advance will help Snecma cover R&D investments, and also reflects the government’s policy of enhancing regional development and industrial capabilities.”

Note to editors

The SaM146 engine, in the 14,000 to 17,500 lb thrust class, is specifically designed for the regional transport market. Sukhoi chose this engine in 2003 to power its family of Russian Regional Jets (RRJ), being developed with support from Boeing.

The SaM146 is being developed in partnership with NPO Saturn through the equal joint venture PowerJet, established in 2004. The SaM146 will power all versions of the RRJ, from 65 to 95 seats, providing substantial savings for operators because of commonality across the range. A number of airlines have already expressed their interest in this regional aircraft.

***