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BRITISH AEROSPACE PLC AND TAC/TAIWAN AEROSPACE CORPORATION AGREE REGIONAL JET JOINT VENTURE

 WASHINGTON, Jan. 19 /PRNewswire/ -- British Aerospace and TAC/Taiwan Aerospace Corporation (TAC) today signed the contractual agreements to form a joint venture company to design, manufacture, market and support the new Regional Jetliner (RJ) family of aircraft. The new RJ family of aircraft was launched in the summer of 1992 and has already achieved a high level of market penetration.
 The new company will also provide continuing technical support to approximately 200 BAe 146 aircraft which have been delivered to date and from which the RJ family is derived.
 The company is expected to begin trading following completion of certain conditions including regulatory approvals.
 The new joint venture company will be named Avro International Aerospace Limited and will be owned equally by British Aerospace and TAC. In consideration of the 50 percent equity acquisition by TAC, British Aerospace will receive an estimated cash consideration of approximately 120 million pounds on a staged basis. A further US$25 million will be received on delivery of the first RJ aircraft assembled in Taiwan.
 Avro International Aerospace will assemble the new RJ family of aircraft at both Woodford in the United Kingdom and Taichung in Taiwan, with the first Taiwan-assembled aircraft expected to be completed in 1994. Marketing and support facilities will be located in the United Kingdom, Asia Pacific and the United States.
 The establishment of this joint venture will strengthen the overall position of the RJ family in the regional jet market place. The combination of the rationalization already underway and TAC's participation will result in a substantially reduced cost base for the RJ program.
 At the signing ceremony Dr. Denny Ko, president of TAC, said: "Today we have signed an historic agreement establishing a new company, which we intend will be the leader in its class worldwide. We are very pleased to have joined in this venture with British Aerospace, the world's most experienced manufacturer of regional airliners, having produced over 1,500 regional aircraft in this category during the last 40 years."
 John Cahill, chairman of British Aerospace Plc, said: "I am delighted that we have concluded the agreement with TAC and that the joint venture will have very significant resources in both Europe and in the Asia Pacific region, the fastest growing commercial airline market in the world. Taiwan, one of the world's most successful trading nations, will now bring its exceptional capabilities and skills to this highly competitive aerospace market which, combined with our experience, will form an unequalled partnership of complementary strengths. This agreement will be good news to all our many 146 and RJ customers around the world and also to some 4,000 British Aerospace employees engaged upon the RJ program at Bristol, Manchester, Prestwick and elsewhere."
 -0- 1/19/93
 /CONTACT: Mike Jolley, 703-406-1006, or Alan Stiley, 703-406-1013, both of British Aerospace/


CO: British Aerospace; TAC/Taiwan Aerospace Corporation; Avro
 International Aerospace Limited ST: District of Columbia IN: AIR SU: JVN


MH -- DC014 -- 6385 01/19/93 13:11 EST
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Publication:PR Newswire
Date:Jan 19, 1993
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