China Aviation Industry Corporation II and Pratt & Whitney Canada

FARNBOROUGH INTERNATIONAL 2000, 26 July 2000 — China Aviation Industry Corporation II (AVIC II) and Pratt & Whitney Canada (P&WC) have signed a Memorandum of Understanding yesterday confirming AVIC II's choice of the PW150 for its Y8F600 development program.

The Y8 is a four-engine medium transport aircraft developed and manufactured by Shaanxi Aircraft Company, a subsidiary of AVIC II. With a maximum take-off weight of 61 tonnes and maximum payload of 20 tonnes, it compares to the U.S. C-130. The Y-8 series includes 16 successfully developed versions, with a total of 76 aircraft produced. It is mainly used in general transport and postal aviation.

AVIC II has chosen the PW150 in their strategy to widen the Y-8 market, further improve operational performance and reduce direct operating costs. The PW150 engine will power AVIC II's new Y8F600 model. The PW150 is a latest-technology engine developed based on the PW100 engine family's almost 60 million hours of flight experience.

Fitted with the PW150, Y-8 fuel consumption will decrease, take-off performance at "hot and high" airports and high altitude cruise performance will improve, engine life will extend, and operating and maintenance costs will reduce. In addition, interior and exterior noise levels will decrease to meet stringent airport noise restrictions. The Y-8F600 will have broad market appeal and expected sales of more than 100 aircraft.

"AVIC II has already collaborated successfully with P&WC. I hope that both parties will attain further success through theY-8 re-engine program," says Dr. Zhang Yanzhong, President of AVIC II.

Pratt & Whitney Canada Corp., 1000 Marie Victorin Blvd, Longueuil, PQ J4G 1A1. Tel: 800-268-8000; Fax: 450-647-7588.