AvtoKrAZ Increases Production By 59% In 2005 To 3,571 Trucks.

The company (KRAZ: HOLD) sold 3,488 trucks in 2005 – a 54% increase from last year. We expect the company’s sales in monetary terms to increase by 85% to USD 131.6 mln due to an increase in the average price per truck by ~12.6% and growth in the production of spare parts. The company sold 737 trucks in – 70% more than in 2004. Exports made up 78% of KRAZ’s sales. More than 1090 trucks (31% of unit sales) were delivered to CIS, over 700 trucks of which were exported to . Over 260 trucks in total were delivered to and . The company also inked its largest contract ever for the delivery of 2,000 trucks to in 2004-05. Two more contracts for 740 and 1260 trucks to are pending. This year AvtoKrAZ plans to increase production by 26% to 4,500 at most, and leave production at 2005 level if prices for energy carriers and steel increase significantly. The former figure is 8% more than our unit sales projections of 4,871 trucks in 2006.