IMD 239-A08

9th Day

Defense and Government Market

Luiz Carlos Siqueira Aguiar November 2008 Executive Vice President, Defense and Government 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: general 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.

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 2 Business Model

 Low level of investment, no capital risk  Very positive cash flow programs

It means that Embraer Defense programs have high level of shareholder added value. Besides that the Defense Programs generate technological spin-offs

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 3 Defense Products and Market Segments

Intelligence, Surveillance and Training Combat Reconnaissance

Transport Systems & Services

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 4 IMD 239-A08

Defense Programs Update Super Tucano – Brazil

BrazilianBrazilian AirAir ForceForce (FAB)(FAB)

 A-29 ( FAB’s designation)  Two version  Four operational bases: (single and  Natal (advanced twin -seater ) training),  99  , Boa Vista,  59 delivered and AFB (operational squadrons).

Ref.: Oct 2008

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 6 Super Tucano –

Colombian (FAC)

 A-29  25 aircraft (twin -seater )  All aircraft already delivered (the last one in August 2008)  Intensive utilization in COIN (Counter Insurgency) missions and successful operations against the FARC  Two operational bases: Apiay and

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 7 Super Tucano Simulator

 Flight Simulator for the FAC’s Super Tucano  Developed by Embraer  Operational in the 3 rd quarter 2008  In addition to the simulator, other training and operational tools already developed (CBT – Computer Based Training, MPS/MDS (Mission Planning and Mission Debriefing Stations)) and in operation.

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 8 Super Tucano –

Chilean Air Force (FACH)  Contract signed in August 2008  12 Super Tucano ( twin -seater )  Tactical training  First deliveries in the second semester 2009

 TOSS – Training and Operational Support CONTRACT SIGNED IN 2008! System (MPS/MDS (Mission Planning/Debriefing Station ), Flight Simulator))

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 9 Super Tucano –

 24 Super Tucano ( twin -seater )  Advanced training and operational missions  Contract already signed  First deliveries expected in late 2009

CONTRACT SIGNED IN 2008!

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 10 Brazilian F-5 Modernization Program

 F-5M (FAB’s designation)  Air superiority fighter  Fleet: 46 aircraft  Modernization program includes structural modification and upgrade of avionics, sensors and armament system capability.  26 aircraft already delivered  Last deliveries in 2009  Additional batch of 11 aircraft can be considered in the near future

Ref.: October 2008

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 11 Brazilian AMX Modernization Program

 A-1M (FAB’s designation)  Attack and  Fleet to be modernized: 43 aircraft  Modernization program includes upgrade of avionics, sensors and armament system capability, and fleet standardization.  First deliveries in 2012 and the last ones in 2015  First two prototypes already being modified and tested by Embraer, and first flight scheduled to 1Q2009.

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 12 IMD 239-A08

Embraer ISR Systems Embraer ISR Systems

 Cost Effective solutions for ISR  18 airplanes contracted:

 : 8

 : 4

 : 3 EMB 145 AEW&C  DRDO/CABS (India): 3 Airborne Early Warning and Control

EMB 145 AGS EMB 145 MP Airborne Ground Maritime Patrol Surveillance

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 14 EMB 145 AEW&C – India

Embraer platforms + DRDO/CABS mission systems

Platform improvements: Mission Systems:  In-flight Refueling  Primary and secondary radars  Increased power generation  SATCOM / COMINT / ELINT  Increased cooling  Countermeasures Systems

Contract:  Three EMB 145 platforms (firm orders)  Seven optional aircraft  Signature in July 2008 CONTRACT SIGNED IN 2008!  First delivery in 2011

DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 15 IMD 239-A08

Transport – Defense and Government ERJ 145 - Petroecuador

 PetroEcuador ()  Ecuadorian State Oil Company  One ERJ 145  Mission: transport of company’s employees  Delivered in September 2008

CONTRACT SIGNED IN EARLY 2008 AND AIRCRAFT ALREADY DELIVERED!

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 17 ERJ 135 – Thailand – Army  Royal Thai Army  Two ERJ 135 (firm orders)  Mission: transport  Deliveries: the first one in November 2008 and the second one in the second semester 2009

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 18 ERJ 135 – Thailand – Navy

 Royal Thai Navy  One ERJ 135  Mission: Transport and Medical Evacuation  Delivery in December 2008

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 19 Phenom 100 –

 First military customer: Pakistan Air Force  Four Phenom 100  Mission: transport  Deliveries: 1Q2009, 3Q2009 and the last two aircraft in 4Q2010.

CONTRACTS FOR THE THIRD AND FOURTH AIRCRAFT SIGNED IN 2008!

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 20 Legacy 600 – Brazil

 Brazilian Air Force (GTE – Special Transportation )  Fleet: 4 + 2 new Legacy 600  Mission: transport of authorities  First aircraft delivered in October 2008  Second one to be delivered in December 2009

CONTRACT SIGNED IN 2008!

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 21 EMBRAER 190 – Brazil

 Brazilian Air Force (GTE – Special Transportation Group)

 Two EMBRAER 190  Replacement of the B737-200  New internal arrangement  Extra range (additional fuel tanks)  Contractual delivery dates: March CONTRACT SIGNED IN 2008! 2009 and November 2009

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 22 Legacy 600 – Ecuador

 One Legacy 600  Mission: presidential aircraft  Delivery in December 2008

CONTRACT SIGNED IN 2008!

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 23 Customer Support – new contracts  French Armed Forces EMB 121 Xingu: Technical and Logistic Support – 4-year contract signed in September 2008;

 FAB’s Legacy and ERJ 145 fleet: 5-year contract amended to include more aircraft EMB 121 Photo: Stéphane Pichard (total of 15 aircraft);

 (FACH) Super Tucano: 5- year contract already signed and to be

implemented by November 2009. LEGACY 600

! 2008 ED IN SIGN CTS TRA CON

SUPER TUCANO - FACH ERJ 145

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 24 IMD 239-A08

F-X2 Program F-X2 Program

 Brazilian F-X program restarted last May 2008  Multi-role fighter to replace the current fleet of fighters (F-2000, F-5M, A-1M) Short-listed aircraft:  Initial batch of 36 airplanes (up to 120 aircraft)  Strong emphasis in offset and technology transfer mainly for the Brazilian aeronautical industry.  Embraer already started talking to short-listed companies, under FAB coordination Boeing F -18 E/F Super Hornet  In 2008: RFP  In 2009:  RFP analysis  Final decision  Contract signature  In 2015: first F-X2 aircraft in operation

Saab Gripen NG IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 26 IMD 239-A08

EMBRAER C-390 EMBRAER C-390 Program Update

 A comprehensive review of aircraft requirements was performed in 2008, together with the Brazilian Air Force and some other selected potential customers  Some aircraft characteristics were reviewed to better fit such requirements and an even more competitive configuration was defined for the EMBRAER C-390  A proposal is being delivered to the Brazilian Air Force, in response to a RFP issued last month. A contract for the development of the C-390 is expected to be signed soon  Global market prospects remain very attractive  Negotiations with potential partners and suppliers continue and selections are planned for 2009

IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 28 IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 29 IMD 239-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 30