AeroSvit Ukrainian Airlines Celebrates 10-Year Anniversary; Reports Huge Growth in Revenue and Passenger Traffic.

KYIV, Ukraine -- Ukrainian Passenger and Cargo Carrier Plans To Construct New Terminal In Kyiv's Boryspil International Airport and Expand Transatlantic Service

AeroSvit Ukrainian Airlines celebrates its 10th anniversary in October 2004. Over the past decade, AeroSvit Ukrainian Airlines achieved unprecedented results in the Ukrainian airline industry, evolving from a start-up company operating only one aircraft to Ukraine's leading air carrier with the largest aircraft fleet, the greatest number of passengers carried, the most extensive route network, and the most dynamic growth in operational results.

In the middle of 2004, AeroSvit Ukrainian Airlines became the first air carrier in the history of independent Ukraine to appear among the top 200 airlines of the world rated by the number of passengers carried. Today, AeroSvit Ukrainian Airlines operates flights to 25 countries of the world. It is also the only Ukrainian air carrier that performs flights on long-haul routes (including transatlantic routes) and is one of the largest air carriers in the Ukrainian domestic market.

"The past 10 years have been truly amazing," said Gregory Gurtovoy, AeroSvit Ukrainian Airlines General Director and CEO. "We have been working very hard to make AeroSvit Ukrainian Airlines the premiere airline not just by European standards, but by worldwide standards as well. Our growth in revenue, market share, and passenger traffic worldwide is only surpassed by our relentless commitment to quality, safety, and overall passenger satisfaction."

Indeed, the airline has had a number of significant accomplishments recently. As the largest airline employer in Ukraine with about 1,300 employees, AeroSvit Ukrainian Airlines has more than doubled its market share over the past five year, from 16 to 34 percent, and modernized its entire fleet faster than any other Eastern European airline with the addition of Boeing 767 and 737 aircraft. As of September 2004, AeroSvit Ukrainian Airlines has the largest route network out of all air carriers in Ukraine, comprised of 11 domestic and 45 international routes to 25 countries.

Most impressive is AeroSvit Ukrainian Airlines' growth in North America. With two Boeing 767-300ER aircraft connecting the capital, Kyiv, with New York and Toronto, AeroSvit Ukrainian Airlines is already planning daily transatlantic flights to New York next year. "We are seeing an incredible growth in passenger and cargo demand," stated Kostadin Botev, AeroSvit Ukrainian's regional manager for North America. "As North American airlines are tackling a number of operational and financial challenges, we are posting strong results in passenger and cargo traffic that require increased capacity." Indeed, the airline has already implemented a state-of-the-art eBooking and Purchasing systems available through www.aerosvit.com, and is planning to start the eTicketing system in 2005.

"Since the commencement of our North American operation, the traffic increase--to about 40,000 passengers per year--and our expansion plans demanded implementation of the online system and became a strong impetus for further growth," added Botev.

And grow it has. AeroSvit Ukrainian Airlines' operating revenues in 2003 were US$106.0 million--an increase of 66 percent compared to 2002 results--and the company is predicting a 70 to 80 percent increase in yearly revenue for 2004. Predictable annual passenger traffic (2004) exceeded 1 million passengers, which represents about 60% growth comparing to 2003. And the company is profitable with some of these profits invested back. In addition to considerable investments into modern aircraft fleet and highly - qualified personnel, AeroSvit Ukrainian Airlines has also decided to carry out the construction of a new international terminal in the major airport of Ukraine--Boryspil--that will cost over US$80 million. According to the plan that is already being carried out, the new terminal complex will be put into operation in March 2006.

About AeroSvit Ukrainian Airlines:

As the largest Ukrainian airline carrier, AeroSvit Ukrainian Airlines extends its network which comprises 45 international routes to 25 countries, as well as 11 domestic routes. The airline is one of the leading carriers of the Eastern Europe by all standards - modern western fleet, state of the art reservation systems, direct links to worldwide destinations reaching out to North America, China, India, and Far East. With about 1,300 employees and predictable revenues reaching $150 Million mark, AeroSvit Ukrainian is one of the fastest growing airlines connecting Eastern Europe, rapidly growing market, with the rest of the world.