DB2 193-A06

DEFENSE AND GOVERNMENT MARKET

EMBRAER DAY 2006 MARKETMARKET NICHESNICHES

ISR

Transport

Training

Sistems And Services

Light Combat

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE 2 BUSINESSBUSINESS MODELMODEL

> Low level of investment no capital risk > Non-recurring investments are paid by first clients > Very positive cash flow programs

It means that Embraer Defense programs have high level of shareholder added value

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 3 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS SUPER TUCANO

Brazilian 99 Deliveries: 44

Colombian Air Force 25 aircraft First export contract 5 will be delivered next December, 7th

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 4 GOVERNMENTGOVERNMENT TRANSPORTTRANSPORT MARKETMARKET ADDRESSABLE MARKET ASSESSMENT Passengers Transport

Latin America (Except ) Fleet of 248 aircraft 80% are older than 20 years

Brazil (4 to 8 pax only) Fleet of 93 aircraft 78% are older than 20 years

Africa Fleet of 245 aircraft 62% are older than 20 years

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 5 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

TRANSPORT > Equador – TAME - Two 170 and one 190 were delivered > Angola – One Legacy 600 contracted > Nigeria – Bauchi – One ERJ 145 contracted > – SATENA – One EMBRAER 170 contracted (plus two ERJ 145 and one EMBRAER 170 in leasing) EMBRAER transport aircraft are being used by 10 governments

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 6 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

BrazilianBrazilianAir AirForce Force operates NationalNationalAir AirMail Mail seven ERJ 145 and two Legacy 600 (pre-owned aircraft)

Santa Cruz de la Siera

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 7 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

TheThe BrazilianBrazilian AirAir ForceForce ISRISR FleetFleet isis presentingpresenting outstandingoutstanding operationaloperational reliabilityreliability levelslevels (99%+)(99%+)

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 8 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

ISR Intelligence Surveillance and Reconnaissance >Greece >Mexico

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 9 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

COMMAND AND CONTROL

Systems Integration capabilities:

>Ground Command Centers

>Data-link systems

>Decision Support Systems

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 10 EXISTINGEXISTING DEFENSEDEFENSE PROGRAMSPROGRAMS

Brazilian Air Force F-5 Modernization Program

>Total Fleet: 46 aircraft >9 were already delivered to Brazilian Air Force >Integration of advanced fire control radar, avionics, new weapons and electronic warfare package

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 11 PROPOSALSPROPOSALS SUBMISSIONSUBMISSION

> 9 multi-mission Legacy India (target towing, aerial photography, sigint) Decision expected in 2007 > 36 Super Tucanos Turkey Decision expected in 2007 > Various Government Transport business opportunities

Total amount ~ US$ 1 billion

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 12 MARKETMARKET COVERAGECOVERAGE

> Worldwide operations > Focus on: >Latin America >Asia (Indian Subcontinent and Southeast Asia) >Africa >Some countries in Europe >USA

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 13 DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 14 DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 15