RUSSIAN SIBERIA SELLS 68% OF ITS SHARES IN ARMAVIA

YEREVAN, JUNE 9. ARMINFO. The Russian air carrier CJSC Siberia
Aviacomany, the second large air carrier in Russia, which is a
signatory of an investment agreement with Armavia company, expresses
desire to transfer the rights and obligations under this agreement to
LTD Mika Armenia Trading. The Armenian Government press-service
informs ARMINFO.

Taking into account the agreement of the parties, the Armenian
Government has instructed today the Chief Civil Aviation Department of
Armenia to negotiate, prepare and sign an agreement within a month
between the Government of Armenia, OJSC Siberia Aviacompany and LTD
Armavia company and LTD Aviafin on transfer of the rights and
obligations after agreeing them with the Justice, Transport and
Communication and Finance and Economy Ministries. The press-service of
Armavia has not provided information on the forthcoming transaction.

The investment agreement between Siberia and Armavia was signed 14
March 2003. 68% of Armavia’s shares belong to the LTD Aviafin
registered in Armenia and belonging to the leadership of Siberia as
natural person, and 32% to the Armenian company LTD Mika Armenia
Trading belonging to the Armenian businessman Mikhail Baghdasarov.

In 2004 Siberia transported 3.748 mln people by 29,780 flights, which
is 10.3% more than in 2003. In 2004 the national air carrier of
Armenia – Armavia – transported 430.9 thous. passengers carrying out
5.375 flights, which is more than the indicator of 2003 42%.