LIMITED LIABILITY COMPANY VOSTOKAVIAPROM

ОSА SINGLE-ENGINE AMPHIBIAN AIRCRAFTPROGRAM

I. GENERAL AVIATION I. GENERAL AVIATION ((GAGA)) MARKET ANALYSISMARKET ANALYSIS

*Source: “General Aviation Manufacturing Association (GAMA), 2005”, “Analysis and forecast: Amphibian aircraft Be-103 in the Chinese market (AVIC II)”

In 2005, the General Aviation (GA) World fleet numbered 320 000 units of aircraft (A/C). Today the fleet’s main share is in the U.S. – 219 780 units of A/C, about 70% of the World’s total GA.*

Dynamic of the GA in the USA and its diversification by type of A/C is typical for the whole world’s GA fleet.

*Source: “General Aviation Statistic Databook, General Aviation Manufacturing Association (GAMA), 2005”

Structure of the GA fleet in the U.S. (219 780 units) by type of A/C (units, % of the total) in 2005*.

Development of the U.S.’ GA and its structure by A/C types is illustrative of the GA World fleet in general.

Diversification by type of A/C (240.070 un.) in the USA (un., % of the total number) based on forecast for 2016 *

In 2005 the GA World fleet of piston-engine aircraft made 73% of the total GA fleet in the U.S. According to forecasts, in 2016 the total share of the GA fleet in the U.S. will make 69%.

Applying this percentage ratio to the GA World fleet, we will receive the following:Estimated number of the GA World fleet of piston-engine aircraft in 2005 is 233 600 units of A/C.Estimate of the GA World fleet of piston-engine aircraft in 2016 is 240 582 units of A/C.

In 2005, the GA World fleet of naval aircraft accounted for 23 000 units of A/C (10% of the GA World fleet of piston engine aircraft). According to the forecast, keeping the proportion (10%), in 2016 it can total 24 000 units of A/C.

Projected increase in the GA fleet in the U.S. in the period from 2005 until 2016 inclusively reaches 9.2%, 20 290 units of A/C.

Applying a 9% upward trend to the existing GA World fleet (320 000 units of A/C in 2005), we will have 349 000-350 000 units of A/C in the GA World fleet in 2016.

Structure of the U.S.’ GA fleet (240 000 units) by A/C types (units, % of the total) based on forecast for 2016

The World fleet of hydroplanes is divided into four sections, according to the aircraft type:1. Amphibian;2. Boat planes;3. Float-type landplanes;4. Landing craft & и aerodynamic ground-effect craft.

Forecast of the GA World fleet of seaplanes in 2016 (24 000 units of A/C)

The GA World fleet of seaplanes, 2005 (23 000 units of A/C)

Provided the existing rate of 10% to the GA World fleet of seaplanes, the amphibian world fleet can total 2400 units of A/C in 2016.

The World fleet of amphibian aircraft reaches 9-10% of the World fleet of seaplanes and numbered 2 300 unites of A/C in 2005, according to the estimate.Other

hydroplanes

20 700

90%

Amphibian

aircraft

2 300

10%

Significant part of the GA World fleet of amphibian aircraft has a substantial working lifespan. Aircraft that were developed 40-50 years ago continue to operate today. Their share in the GA amphibian fleet accounts for 50% (1150 units of A/C). Therefore, we can expect their gradual phase-out in the coming few years, which will generate a need for replenishment of this part of the fleet. Demand of the GA World fleet in 2006 – 2016 accordingly can make about 1200 – 1300 NEW AMPHIBIAN AIRCRAFT.

Single-engine aircraft account for 90% of the GA World fleet and, compared to two-engine aircraft, have lower price and operating costs as well as higher load ratio.

Production of the OSA amphibian will allow Vostokaviaprom LLC to enter the world amphibian aircraft market and occupy not less than 30% of it.

In 2000-2005, JSC KnAAPO had designed, constructed and tested the experimental amphibian aircraft SA-20P that became the OSA amphibian aircraft’s prototype.

1000Range with 3 passengers onboard, km660

670Useful load, kg480

Motor petrolUsable fuel100LL

800Price per aircraft, USD thous.1,250

OSASpecificationBe-103

Forecast of GA amphibian aircraft’s market structure (1300 units of A/C) in 2006-2016

Others35027%

OSA26020%

Be-10313010%

Centavr1058%

Seawind45535%

CHINA’S GA MARKET DEMAND FOR NEW A/C, ACCORDING TO AREAS OF USE (8000 A/C, in 2005-2020)*

Considering multiple operating features of the light amphibian aircraft Be-103 and OSA, demand for these aircraft in China by the year 2020 can reach up to 250 units of A/C with the use in the following areas:

● Air tourism – 50 units; ● Maritime patrolling – 50 units; ● Military application – 50 units; ● Aerial survey – 20 units; ● Business – 20 units;

● Private use – 30 units; ● Training – 30 units.

*Source: “Analysis and forecast: amphibian aircraft Be-103 in the Chinese market (AVIC II)”

Due to China’s rapid economic growth, Chinese GA market is dictating requirements that differ from global trends.

II. EXPERIMENTALII. EXPERIMENTAL AMPHIBIAN AIRCRAFTAMPHIBIAN AIRCRAFT

ASAS-20-20PP

PRINCIPAL DIFFERENCE OF THE SINGLE-ENGINE AMPHIBIAN AIRCRAFT SA-20P DESIGN FROM BE-103

Power plant with engine М-14, new nacelle, feeder tank and pylon

Canopy emergency release mechanism

THE MAIN STRUCTURE DIFFERENCE OF THE SINGLE-ENGINE AMPHIBIAN AIRCRAFT SA-20P FROM BE-103

Horizontal tail with expanded area and

horn-balanced elevator

Removable hydraulic

rudder

Spray deflector

Attachable arrow-type step

DEVELOPMENT OF THE SА-20P AMPHIBIAN AIRCRAFT (PROTOTYPE OF OSA) PROGRAM

Development of the design documentation and construction of the aircraft.

Start of the aircraft engineering design (Issue of the administrative order by JSC KnAAPO No.520 on 15.05.2000).

2000

2001

2002

Flights with refined horizontal tail, take-offs from water and landing on water.

Performed: 21 flights, 45 take-off and landing operations on artificial runway, 17 takeoff and landing operations on water, three-time in-flight engine cut-off and ignition.

Total flight hours – 20 hours 31 minutes.

Registration of the aircraft with the Uniform Registry of Aircraft under the Federal Aviation Association with the number No.RA-3068К.

2003

Participation of the aircraft in an aquatic festival on 12th of June.

On 16th of October the first flight of the SА-20P (V - 160 km/h, H - 1100 m).

Total flight hours for the first two flights under the first flight program – 1 hour 7 minutes, 11 landings on artificial runway.

DEVELOPMENT OF THE SА-20P AMPHIBIAN AIRCRAFT PROGRAM (continued)

2005

Registration of the aircraft with the Uniform Registry of Aircraft under the Federal Aviation Association as experimental. Getting of the Certificate on the M9F engine. Continued flight development tests on the M9F engine including qualification flights under OSA’s certification, trial performance.

2006

2004 Installation of hydraulic rudder, installation and testing of environmental monitoring system, stall flights.

Performed: 7 flights, 16 takeoff and landing operations on artificial runway, 7 takeoff and landing operations on water. Total flight hours – 5 hours 32 minutes.

Collaboration with the industry’s Technical council. Decision of the Council’s panel on implementation of the first stage of flight development tests.

First stage of the flight development testing.

Performed: 3 flights, total flight hours – 1 hours 37 minutes.

Performed during 2002 and 2005: 33 flights (excluding taxing and runs). Total flight hours made 27 hours 10 minutes.

Installation of reduced glove mid-wing and small arms (PKT).

SА-20P PRODUCTION

DEVELOPMENT OF THE SА-20P AMPHIBIAN AIRCRAFT PROGRAM (continued)

III. SINGLE-ENGINE AMPHIBIAN III. SINGLE-ENGINE AMPHIBIAN AIRCRAFTAIRCRAFT ( (OSAOSA))

GENERAL VIEW OF SINGLE-ENGINE AMPHIBIAN AIRCRAFT OSA & ITS MAIN CONSTRUCTION FEATURES VERSUS SA-20P

SA-20P

Power plant with increased takeoff power – engine M-9F (420 h.p.) with propeller Ø2,6 м

Reduced vertical tail

Nacelle with improved aerodynamic and operational performance

Trapezoidal horizontal tail

Shift of feeder tank to the strut, an increased fuel capacity by 26 kg (to 242 kg)

Modern Russian Flight Navigation System (PNK)

OSA DESIGN DESCRIPTION

WINGS are detachable and consist of a mid-wing and two outer wings. High-strength fasteners connect the wing components. Fuel tanks are located between the front spar, leading edge, medium and hatch-end ribs of the mid-wing. There are hatch removable covers in the fuel tanks and assembling and inspection hatches in leading and trailing wing edges.

EMPENNAGE The amphibian horizontal tail plane is supplied with an elevator mounted in the area of propeller blowing. The empennage consists of the stabilizer, elevator with trimmer, fin, dorsal fin and rudder with trimmer. The design provides for removable covers for the rudder control system assembling. In the rudder’s lower part a hydraulic rudder is installed, due to which the amphibian’s turning radius on water against the aircraft’s center of gravity does not exceed 0.5 of wing span.

AIRFRAME Аaerodynamic design of OSA – a monoplane with low-stab displacing wings provided with root extensions. Traditional hydrodynamic configuration in combination with low-stab wings ensures highest hydro-aerodynamic efficiency during the water takeoff run, while absence of flops increases the aircraft’s aerodynamic performance.

LANDING GEAR of the aircraft is of a tricycle type with nose wheel. The main struts are mounted on the wing ribs and retracted forward into the wing bay. The nose landing gear with castor is fastened to a frame of the nose part of the boat and retracted forward into the nose wheel bay. Retraction and extension of landing gear are performed by hydraulic system securing extension of gears and their downlock. An emergency landing gear extension is carried out manually with the help of control cable by releasing the landing gear. The downlock is carried out under the weight and ram air pressure. The undercarriage doors drive is made by kinematical connection with the corresponding strut.

POWER PLANT OF OSA SINGLE-ENGINE

AMPHIBIAN AIRCRAFT

Engine М9F

Specification:

Cooling system ________________________________ air

Number of cylinders ______________________________9

Power, h.p. ___________________________________420

Cruise consumption, g/HP-h _____________________220

Crankshaft speed, rpm _________________________2950

Basic overhaul time, h _________________________1000

Weight, kg _____________________________________220

Usable fuel: B91/115 GOST 1012-72, 100/100LL, motor petrol of with octane level not lower 85.

MTV-9/Hartzell propeller Type of propeller: controllable pitch, tractor. Specification:Diameter, m _____________________ 2,6Number of blades _________________3Weight, kg ______________________44

Power plant consists of the engine М-9F, manufactured by Voronezh Mechanical Plant (Russia), with MTV-9 type propeller, a subframe, exhaust collector, gears for the engine and units control, and cooling, starting, fuel and oil systems as well.

М9F engine is installed in the aircrafts SU-26, SU-29, SU-31, SU-31М, SU-49 and in other GA airplanes.

CARGO & PASSENGER CABIN VERSIONS OF OSA AMPHIBIAN

3.8 m

1.75 m

CARGO PASSENGER

1.23 m

1.2

6 m

In the cabin passenger seats are located in 6 in a row: 2 seats alongside with the path = 200 mm and spacing 1220 mm and 860 mm); interior volume: 4.6 m3.

MAIN INSTRUMENT PANEL

Installed equipment permits to carry out daylight flights under Visual Flight Rules (VFR) by one pilot according to the aviation regulations JAR-23

PATROLLING VERSION OF OSA, ARRANGEMENT & USE

Patrolling version of the amphibian can be equipped with environmental monitoring data system (EMS) and small arms (PKT) and carry out the following mission:•Patrolling of forestland, sea, river and plain borders; •Environmental monitoring; •Search-and-rescue and antiterrorist operations; •Prevention of illegal activities and defeating personnel from the aircraft.

1 2 3 4 5 6

4 – collimating sight5 – TV and thermal control system6 – airborne radar

1 – Kalashnikov tank machine gun (PKT)2 – ammunition chest3 – storage stand for special equipment

5

Environmental monitoring data system supplies a consumer with operational information on environmental condition and critical environmentally fragile facilities, examines territory to get Remote-Sensed Data (RSD) by carrying out special surveys.

1. Air carrier (OSA type);

2. Inboard measuring complex;

3. Telemetry complex;

4. GIS inboard navigation satellite system;

5. GIS of ground control station;

6. Data processing system.

EMS STRUCTURE

INMARSAT

Information transfer

GPS NAVSTAR

PRINCIPLE OF EMS OPERATION

The GPS satellite system positions the aircraft and together with GIS locates measured environmental data on electronic map. Real-time information is transferred to any remote access point.

Land use monitoring Condition monitoring of waste disposal facilities

Soil landscape monitoring

Forecast & identification of wild fire

Monitoring of mineral resources development

Infrared survey of heating mains

Radar mapping

ACTIVITIES PERFORMED WITH THE USE OF ENVIRONENTAL MONITORING DATA SYSTEM

TRIAL INSTALLATION OF LIGHT ARMS ON BOARD OF SINGLE-ENGINE AMPHIBIAN AIRCRAFT SA-20P

Installing of light arms is a necessary attribute of the OSA amphibian’s patrolling version.

Firing is controlled from the control panel on the instrument panel and by the trigger switch on the aircraft control stick. The machine gun is unmovably fixed and targeting is effected by the aircraft by means of movable collimating sight.

Weapon type:Kalashnikov PKT tank machine gun with electric solenoid trigger, in service of the Defense Ministry of the Russian Federation.

Military characteristics of PKT:Calibre___________________7.62 mmRate of fire___________800 round/minAccuracy range_____________1000 mAmmunition ____________800 rounds

INSTRUMENT PANEL OF THE AIRCRAFT’S PATROLLING VERSION

Installed equipment makes possible daylight and night flights in easy and adverse weather conditions (VFR-IFR) by one or two pilots according to JAR-23.

Aircraft navigation system includes: weather locator and satellite navigator based on MRK-22 with attitude indicator and aviation clock functions. Any iformation received from the navigation system is displayed on left instrument subpanel. Display on the right subpanel duplicates possibilities of the first pilot’s display and can show data received from other systems of the aircraft during such tasks as patrolling, monitoring and management in the air of various activity types.

Attitude indicator AGB-96R

Normal load factor indicator AK-9S HF Radio “Kristall”

VHF Radio “Yurok”

Aircraft transponder SO-94-R

Aircraft wireless intercom SPU-34М (2 pcs.)

Airspeed indicator USBS-350

Power supply check indicator VA-3

First pilot’ and co-pilot’s navigation system indicators

Radio compass ARK-35

Magnetic direction indicator MKB-80 Altitude indicator

VR-10

COMPARATIVE ANALYSIS OF OSA & BE-103 PERFORMANCES

Specification BE-103 OSA

Engine, producer country TCM IO-360ES, USA M-9F, Russia

Quantity and engine (power) 2 x 210 h.p. 1 x 420 h.p.

Usable fuel Aviation gasoline 100LL Motor petrol AI-92, AI-95

Maximum take-off weight, kg 2330 2330

Empty weight, kg 1850 1660

Useful load, kg 480 670

Maximum fuel capacity, kg 245 242

Stalling speed, km/h 112 112

Maximum cruising speed, km/h 240 240

Economic speed, km/h 190 201

Seating capacity, persons 1+4 1+5

Maximum range (with emergency reserve for 30 min), km

1100 1035

Range (3 passengers onboard), km 650 980

Range (5 passengers onboard), km - 745

Maximum wave height, m 0.4 0.5

Fuel cost per one flight hour, USD 100.6 29.6

DISTANCE – PAYLOAD CHART

0

100

200

300

400

500

600

0 200 400 600 800 1000 1200

Gк.н., kgemerg. rsv for 30min

L, км

Бе-103

ОСА

Be-103

OSA

L, km

IV. COMPARISON OF OSA IV. COMPARISON OF OSA WITH AIRCRAFT WITH WITH AIRCRAFT WITH AMPHIBIOUS FLOATSAMPHIBIOUS FLOATS

CESSNA CE-206H CESSNA CE-182S

Fuel consumption, kg/h

Fuel cost per flight hour, USD

Price of basic configuration aircraft, USD thous.

One passenger seat price, USD thous.

Maximal range, km

Number of passengers

Maximal range, km

Medium speed, km/h

OSA COMPARISON VERSUS AIRCARFT WITH AMPHIBIOUS FLOATS

Cessna SkylaneCE-182S

Cessna StationairCE-206H OSA

Take-off engine power h.p. 230 300 420Cruising speed km/h 207 212 201Weight: maximum take-off kg 1406 1633 2330

empty kg 1162 1264 1660including floats kg 280 265 -

useful load (crew, pass., fuel) kg 244 369 670

Ferry range (pilot, maximum fuel load and reserve for 30 min.)Maximum fuel weight kg 167 237 242

Fuel weight excluding emergency reserve kg 147 211 212

Cruise consumption kg/h 27 35 40Maximum range km 1128 1279 1035

Full passenger load range (pilot, passengers, reserve for 30 min.)

Seating capacity (pilot + passengers) person 1 + 1 1 +3 1+ 5

Load weight (pilot + passengers) kg 159 313 468

Maximum fuel capacity kg 85 56 202

Fuel weight excluding emergency reserve kg 65 26 173

Range km 487 154 745

Price of aircraft with standard specification (2005) USD 386 730 523 000 800 000

incl. floats USD 89 230 110 000 -

One passenger seat price USD/pass. 386 730 174 333 160 000

Usable fuel price USD/kg 2.34 2.34 0.74

Fuel cost per one flight hour USD/h 63.2 81.9 29.6

Cabin size (height * length * width m 1.23*2.52*1.07 1.26*2.80*1.12 1.26*3.34*1.23

Max. wave height while takeoff/landing m 0.4 0.4 0.5

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

VOSTOKAVIAPROM LLC

VOSTOKAVIAPROM LLC23 Liteinaya Str., Komsomolsk-on-Amur, 681005, Russia

Telephone: +7 (4217) 54-99-00Fax: +7 (4217) 54-98-55