BEIJING, CHINA -�Media OutReach�-�26�July�2019�-�The
revenue of Rostec State Corporation in 2018 reached $26 billion (RUB 1,642
trillion), with almost two-thirds of it accounting for sales of civilian
products and export of high-tech solutions. The company's consolidated net
profit exceeded $2 billion (RUB 128 billion). This was reported by Rostec CEO
Sergey Chemezov during a meeting with Russian President Vladimir Putin on July
22.

Presenting the Corporation's annual
report, Mr. Chemezov said that in 2018 Rostec fulfilled the State Defense
Procurement Order by 99.6% and is ahead of time in fulfilling the state-set objective
to diversify its production: the share of civilian products in the total
revenue increased by 1.5 percentage points and reached 30%.

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"The past year also set a record in the
export of Russian weapons. The total volume of supply by amounted to $13.7
billion. The stable portfolio of foreign orders for Russian military machinery
has reached $55 billion," Rostec CEO Sergey
Chemezov noted. "Rostec's key financial indicators are growing as
well. We managed to increase our net profit by almost 6% compared to last year.
Our net profit margin�in 2018 amounted to 7.8%."

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In 2018, the Corporation made significant
efforts to rehabilitate distressed industrial assets recently transferred to
Rostec.

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Thus, the Corporation continued its
activity on the integration of Uralvagonzavod (UVZ) holding into its structure.
By the time of the transfer, the company's consolidated loss amounted to $66
million (RUB 4.2 billion). The support from the State Corporation helped UVZ
cut its losses by half - to $33 million in 2018, while its revenue from
civilian products increased (share in the total revenue reached 38.2%) along
with other financial indicators of the holding.

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In addition to that, last year saw the start of the
transfer of United Aircraft Corporation's (UAC) enterprises under the
management of Rostec. The rehabilitation�process and the implementation of
civil aviation programs require significant investments and are aimed at
creating a national-level Russian aircraft producer to encompass design, parts
manufacturing, the final assembly of air- and rotorcraft, and after-sales
service. The aviation cluster will become the most powerful one in the
structure of Rostec: its total revenue will exceed $15.8 billion (RUB 1
trillion) per year.�

About Rostec

Rostec is a Russian State Corporation that was
established in 2007 to facilitate the development, production and export of
high-tech industrial products designed for civilian and military applications.
The Corporation comprises over 700 organizations that are currently part of
eleven holding companies operating in the military-industrial complex and three
holding companies working in civilian industry, as well as over 80 directly
managed organizations. Rostec's portfolio includes well-known brands such as
AVTOVAZ, KAMAZ, Concern Kalashnikov, Russian Helicopters, UralVagonZavod, etc.
Rostec companies are located in 60 constituent entities of the Russian
Federation and supply products to the markets of more than 100 countries.
According to Rostec's strategy, the main objective of the Corporation is to
ensure that Russia has a technological advantage in highly competitive global
markets. Rostec's key objectives include the introduction of a new
techno-economic paradigm and digitalization of Russian economy.