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Home , Chilean Air Force, Colombian Air Force, Ecuadorian Air Force, Pakistan Air Force

10 th Embraer Day

Embraer Defense Systems

Orlando José Ferreira Neto Executive Vice President Defense Market

March, 2010 Forward Looking Statement

This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: economic, political and business conditions, both in and in our market. The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,” “expects” and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.

EMBRAER PROPRIETARY INFORMATION 2 Retrospective – Embraer Defense in 2009

• Important contracts with the Brazilian Ministry of Defense

• KC-390 Program with the Brazilian (FAB) • A-4 Modernization Program with the Brazilian Navy • Super Tucano

• 100 th production delivered to FAB • First deliveries to the Dominican and Chilean Air Forces • New contracts for two undisclosed customers (9 aircraft) • Deliveries of all Phenom 100 (four aircraft) contracted by the Air Force • Delivery of the two Brazilian presidential aircraft (E190PR) • First flight of the AMX prototype #1 in the A-1M program • Customer Services business expansion • Sales of US$ 1.6 billion and revenues of US$ 499 million AA very very special special year year for for Embraer Embraer Defense Defense with with excelle excellentnt results results andand significant significant achievements achievements

EMBRAER PROPRIETARY INFORMATION 3 Embraer Defense Products and Services

ISR (Intelligence, Surveillance and Advanced Training and Light Attack Reconnaissance) Transport of authorities

Modernization Programs Military Tactical Transport Systems and Services

EMBRAER PROPRIETARY INFORMATION 4 Super Tucano Deliveries to FAB

FAB • A-29 (FAB designation) • Single and twin-seat versions • 99 firm orders • 85 already delivered

Ref.: 12/Mar/2010

EMBRAER PROPRIETARY INFORMATION 5 Super Tucano to Export Market – Delivering on time

Colombian Air Force

• 25 aircraft • 12 aircraft • All delivered • 4 already delivered Dominican Air Force

• 8 aircraft • 24 aircraft • 2 already delivered • 4 already delivered Ref.: 12/Mar/2010 EMBRAER PROPRIETARY INFORMATION 6 Training and Operation Support System

• TOSS: Training and Operation Support System • Flight Simulator • CBT (Computer Based Training) • MPS (Mission Planning Station) and MDS (Mission Debriefing Station)

• Fully developed by Embraer • Customers: , , and Dominican Republic.

EMBRAER PROPRIETARY INFORMATION 7 Super Tucano

• Firm orders: 178 aircraft • Training and COIN aircraft Market • Brazil: 99 Forecast 2020 • Colombia: 25 • 700 aircraft / US$ 8 bi • Dominican Republic: 8 • Chile: 12 • Ecuador: 24 • Undisclosed: 10 • Prospects: • South East Asia • Africa • Deliveries: 121 aircraft Ref.: 12/Mar/2010 • • To be delivered: 57 aircraft AnAn affordable affordable and and comprehensive comprehensive solution solution for for traini trainingng and and COIN COIN missions missions with with excellentexcellent market market acceptance acceptance and and with with promising promising pers perspectives.pectives. EMBRAER PROPRIETARY INFORMATION 8 EMB 145 AEW&C –

Embraer platforms and DRDO/CABS mission systems Mission Systems: • Primary and Secondary Radars • Satcom • COMINT / ELINT • Countermeasure Systems

Platform improvements: Contract: • In-flight refueling system • Three EMB 145 platforms • New electrical generation system • Contract signed in July 2008 • New cooling system • First delivery in 2011

DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems EMBRAER PROPRIETARY INFORMATION 9 Embraer ISR Systems

• Firm orders: 18 aircraft • Deliveries: 15 aircraft in operation

• Brazilian Air Force: 8 EMB 145 AEW&C Airborne Early Warning and Control • : 4 • : 3 • Under development:

• DRDO/CABS: 3 EMB 145 AGS Airborne Ground Surveillance • Prospects: • Multimission Aircraft – India: 9 Legacy 600

• Opportunities in South Asia, South America and Middle East EMB 145 MP Maritime Patrol • ISR Market Forecast 2020 • 370 aircraft / US$ 30 bi

Cost-effectiveCost-effective solutions solutions to to address address a a growing growing marke market t Multimission Aircraft

EMBRAER PROPRIETARY INFORMATION 10 Transport of authorities • Recent deliveries: • 2 EMBRAER 190 PR (FAB) • 1 Legacy 600 (Panama) • 4 Phenom 100 () • 1 ERJ 135 (Royal Thai Army) • Next delivery: EMBRAER 190 PR • 1 ERJ 135 (Royal Thai Navy): 4Q2010 • Prospects: • Opportunities in South America, South Asia, and Africa. Phenom 100 • Market Forecast 2020 • 400 aircraft / US$ 6.5 bi

Legacy 600 ERJ 135

TheThe most most complete complete portfolio portfolio delivering delivering satisfaction satisfaction and and flexibility flexibility to to our our customers customers

EMBRAER PROPRIETARY INFORMATION 11 Modernization programs

Brazilian Air Force – A-1M • 43 aircraft • Three prototypes in ground and flight tests

• A-1 revitalization contract under discussion Brazilian Air Force – F-5M Brazilian Navy – A-4

• 46 aircraft • 33 already delivered • 12 aircraft • Additional batch of F-5s and A-Darter missile integration under discussions • First prototype at GPX-CS Ref.: 12/Mar/2010 Tailor-madeTailor-made to to fulfill fulfill the the Brazilian Brazilian Armed Armed Forces Forces n needseeds EMBRAER PROPRIETARY INFORMATION 12 Customer Support – Defense Market

• Material Support • Pool • CLS (Contractor Logistic Support) • ESSG (Embraer Support Solutions for Government)…

Customer Support Revenue

70 63 60

50 44 39 40 32 30

US$ US$ million 20 10 0 2006 2007 2008 2009

GrowingGrowing business business opportunities opportunities related related to to new new trend trendss in in support support programs programs

EMBRAER PROPRIETARY INFORMATION 13 EMBRAER KC-390

• New tactical military transport aircraft • Payload: 19 ton / Range: 1450 nm (2685 km) • Contract signed with Brazilian Air Force in April 2009 • Currently in “Preliminary Design Phase”

• Market Forecast 2025 • 700 aircraft / US$ 50+ bi

EMBRAER PROPRIETARY INFORMATION 14 EMBRAER KC-390 Three-view

EMBRAER PROPRIETARY INFORMATION 15 EMBRAER KC-390 Master schedule

2009 2010 2011 2012 2013 2014 2015 2016

Preliminary Design Initial Definition Joint Definition Detailed Design and Certification Phase Phase - PD Phase - IDP Phase - JDP DDP

Wind Tunnel PDR CDR Testing LoadsLoads CalculationCalculation

StructuresStructures CalcCalc

DrawingsDrawings Partnership and Supplier Procurement ToolingTooling 1 2

Prototypes

IOCIOC

FOCFOC

StructuralStructural TestingTesting ProgramProgram running running on on schedule, schedule, geared-up geared-up for for full-sca full-scalele development development and and also also for for selectionselection of of the the main main partners. partners.

EMBRAER PROPRIETARY INFORMATION 16 EMBRAER KC-390 Program Update

Preliminary Design Phase • Aerodynamic configuration definition • Structural architecture definition • Systems technologies definition • Several wind tunnel test campaigns performed or KC-390 model for the wind tunnel test under execution • Cockpit mock-up and simulator in use • Cargo compartment volumetric mock-up

Section of the cargo compartment volumetric mock-up

MainMain focus: focus: risk risk mitigation mitigation

EMBRAER PROPRIETARY INFORMATION 17 F-X2 Program Status

• Brazilian F-X program restarted in May 2008 Short-listed contenders: • Multi-role fighter to replace the current fleet of fighters (F-2000, F-5M, A- 1M) • Initial batch of 36 airplanes • Strong emphasis in offset and technology transfer mainly for the Brazilian industry and Government agencies. Boeing F -18 E/F Super Hornet • Embraer preliminary agreements with each of the short-listed contenders covering cooperation in technological areas related to the fighter development, manufacture and support, and other Embraer projects. • In 2009: Proposals delivered in February 2009, and revised in May 2009. • Final decision by the Brazilian Government expected soon. • Negotiations of FAB/winning bidder purchase contract and offset agreements with industry negotiations through 2010.

Saab Gripen NG

EMBRAER PROPRIETARY INFORMATION 18 Embraer C4I System

• Embraer’s experience in C4I System (Mexico) SATCOM Aerial • R&D projects on-going Surveillance Tactical Maritime Patrol related to C4ISR systems Radars • Several solutions for

Command and Control Fighters IntranetIntranet System • Data Link specification and Military and development Civilian Meteorologic Telephone al Information C4ISR – Command, Control, Communication, Net • Customized solutions (e.g. Computer, Information, Intelligence, Link BR2 for Brazil) Surveillance and Reconnaissance

• Data links for Embraer SENEAM InterceptorsInterceptors Civilian ATC aircraft Vehicles and C2 Other Mobile Stations Hangars Command & Radars Control Centers

C4I:C4I: Command, Command, Control, Control, Communications, Communications, Computer Computer and and Intelligence Intelligence

EMBRAER PROPRIETARY INFORMATION 19 Embraer Defense Results

Embraer Defense Results

700 650 14 600 13 505 499 13 12 500 11 400 346 9,1 10 8 9 300 227 8 200

6,6 Participation (%) 6 7 Revenues (US$ million) (US$ Revenues 100 6 0 5 2006 2007 2008 2009 2010 (projection)

2010:2010: entirely entirely based based on on firm firm contracts contracts

EMBRAER PROPRIETARY INFORMATION 20 Embraer Defense

•We are delivering to customers’ satisfaction • … Establishing the future growth basis • AEW India • Super Tucano for the Export Market • Phenom 100 Pakistan • New VIP product (EMBRAER 190 PR) • ERJ 135s Thai Armed Forces • KC-390 (development 2009-2016) + (future serial production) • Super Tucano FAB and Colombia … • Potential offsets and industrial participation in •Revenue stream stable and sustainable the F-X2 program • A-1M (~ US$ 780M – 2002-2015) • C4I • F-5M, additional batch, A-Darter integration • A-4 Brazilian Navy (~ US$ 144M – 2009-2014) •Sound positioning in all business segments we are involved…

2008/2009 2009/2010 Beyond

EMBRAER PROPRIETARY INFORMATION 21 EMBRAER PROPRIETARY INFORMATION 22