Iran Khodro of Iran and Peugeot of France agreed to produce Peugeot 206 under a joint venture contract.

Based on the contract, 120,000 Peugeot 206 automobiles will be produced in Iran Khodro per year for ten years to start from October 2001. From the very beginning, 65% of the automobile parts will be those manufactured in Iran.

The contract is based on foreign exchange barter, so that manufactured automobiles will be exported against any amount of prefabricated parts (C.K.D) imported.

Therefore, production of this automobile will have no foreign exchange requirements for the Iranian government nor for Iran Khodro. The automobile, which is on sale in Europe at present, is the sixth generation of the French Peugeot automobiles and enjoys very advanced technology.

It was first manufactured in France in 1998.

Existing/Optional Accessories:

• Manual Gearbox

• Hydraulic steering wheel

• Engine catalyst system for prevention of air pollution (Standard)

• Vertical adjustment of driver seat

• BSI system

• Adjustment of headlights from the interior

• Powered window winder

• Air conditioner and seat belt for all passengers

Warranty : 3 years or 60,000 km which ever occurs first .