GMS 146-A04

DefenseDefense ProgramsPrograms UpdateUpdate

November, 2004 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.

GMS 146-A04 PROPRIETARY INFORMATION 1 Defense Market Segments

Intelligence, Surveillance and Reconaissance Training Combat Transport Systems & Services

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 2 GMS 146-A04

BrazilianBrazilian AirAir ForceForce

AmazonAmazon SurveillanceSurveillance SystemSystem The Brazilian Amazon Must Be Protected

Natural Illegal Mining Resources

Illegal Loggers

Invasion of Forest Indigenous Fires Lands Drug Trafficking

Agrarian Cattle Ranching Conflicts

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 4 The Brazilian Amazon

The Brazilian Administration Challenge in the Amazon

[ Large area (5.2 million sq.km) [ Border Surveillance and Control [ Illegal Activities Enforcement [ Air and Surface Surveillance and Control [ Land Occupation Control [ Environmental Protection [ Sustained Development

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 5 Amazon Surveillance System

Protection of the Amazon to guarantee its sustained development

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 6 Amazon Surveillance System

SENSORS DATA FUSION AND INTEGRATED GOVERNMENTAL INTEGRATION KNOWLEDGE GOALS

RS SATELLITES

DATA COLLECTION ENVIRONMENTAL PLATFORMS MONITORING PROTECTION

WHEATER OF THE STATIONS LAND USE SURVEILLANCE AMAZON AIRCRAFT SURVEILLANCE TO ATTAIN RADARS SUSTAINABLE COMMUNICATIONS AIR EXPLOITATIONS TRAFFIC CONTROL • • DEVELOPMENT • • • •

DATA BANK TELECOMUNICATIONS

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 7 Amazon Surveillance System

The SIVAM ground segment

[ 3 Ground Surveillance Centers [ 19 fixed and 9 transportable ground radars [ 70 weather stations [ Satellites ground stations [ 200 data collecting platforms [ 900 users

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 8 Amazon Surveillance System

The SIVAM airborne assets

[ R-99A - EMB 145 AEW&C – Airborne Early Warning & Control [ R-99B - EMB 145 RS – Remote Sensing and Ground Surveillance. [ A-29 – Light (Super Tucano)

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 9 EMB 145 AEW&C

R-99A –

[ Airborne Early Warning [ Mission System [ Airspace Management [ Command and Control [ Electronic Intelligence [ COMINT [ ELINT [ Sea Surveillance

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 10 EMB 145 AEW&C (R-99A)

MULTI-MISSION CAPABILITY

Airspace Fighter Airborne Early Management Command and Allocation Electronic Sea and EEZ Warning and Control and Intercept Intelligence Surveillance Border Control Control

SYSTEM CAPABILITIES

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 11 EMB 145 AEW&C – The cost effective solution

US$ x 1000/FH 10

5

1

The EMB 145 AEW&C has the lowest TOC among the other AEW aircraft

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 12 EMB 145 RS

R-99B – Remote Sensing Aircraft

[ Airborne Ground Surveillance [ SAR/MTI [ FLIR [ Electronic Intelligence [ COMINT [ Environmental Monitoring [ ELINT [ Multi-Spectral Scanner

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 13 EMB 145 RS

R-99B – Remote Sensing Aircraft

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 14 Fleet Operational Summary

[ Brazilian Fleet: 5 R-99A (AEW&C) + 3 R-99B (RS) [ Total Hours (accum. from July 2002 to September 2004): 9.300 [ Operational Reliability: 97,99 %

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 15 Super Tucano

A-29 – Light Attack Aircraft The operational needs

[ An operational aircraft to conduct border patrol, counter insurgency and illegal activities enforcement in the Brazilian Amazon [ An advanced trainer to replace old Aermacchi/Embraer EMB-326s jet trainers and enhance the pilot skills and situation awareness capabilities [ EMBRAER was contracted to develop and produce 76 aircraft (25 single and 51 twin seaters) with 23 options

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 16 Super Tucano

A-29 – Light Attack Aircraft

[ Day and night combat aircraft [ Operations from unpaved runways [ 3,000 lb of weapons [ Advanced avionics [ Self-defense system [ Data-link

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 17 Super Tucano A-29 – Light Attack Aircraft

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 18 Amazon Surveillance System

Brazilian Air Force Connectivity

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 19 Surveillance Operations

Air defense operations

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 20 Surveillance Operations Cruzex 2004 7-20 November 2004 [ Natal and AFB (Brazil’s Northeast) [ Multi-lateral Air Exercise involving forces from Brazil, , and (South Africa, and as observers). [ 100+ aircraft (of 20 different types). [ AEWs: [R-99A (Brazilian Air Force) [E-3F (French Air Force) www.cruzex.aer.mil.br

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 21 Surveillance Operations

Drug enforcement operations

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 22 Surveillance Operations

Drug enforcement operations

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 23 Surveillance Operations

Drug enforcement operations 4,600+ unregistered flights were detected entering Brazilian airspace in 2003 according to the Brazilian Air Force

A law that authorizes the Brazilian Air Force to shoot down any aircraft known be transporting illegal drugs came into effect in mid-October 2004

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 24 Surveillance Operations

BAF AEW&C AIRCRAFT PLAYS A ROLE IN FREEING 71 KIDNAPPED WORKERS IN THE JUNGLE.

[ Peruvian guerilla kidnapped 71 workers of a gas pipe building company and held them to q PERUVIAN MAGAZINE ransom. “La República” [ Peruvian Government asked the Brazilian Government for help. [ Brazilian Air Force R-99A was sent to listen guerilla comms and pinpointed the area. [ Peruvian Defense special operations assault forces were directed to the guerilla camp. [ All prisoners were harmless released.

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 25 GMS 146-A04 OtherOther BrazilianBrazilian AirAir ForceForce ProgramsPrograms F-5BR Program

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 27 F-5 BR

Embraer is the prime contractor for Brazilian Air Force’s F-5 upgrade

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 28 F-5 BR

Technological Evolution

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 29 AMX

Ground Attack, Advanced and Fighter Lead-In Trainer

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 30 AMX

A-1M Project – AMX upgrade Program

New avionics system New Weapons New Self Protection System New sensors (radar and E/O Pod)

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 31 GMS 146-A04

HellenicHellenic AirAir ForceForce

EMB 145 AEW&C production and delivery

Greece

Brazil

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 33 GMS 146-A04

MexicoMexico

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 35 GMS 146-A04

ACSACS ProgramProgram ACS – Aerial Common Sensor August 2nd, 2004 – wins the ACS program

Embraer will be responsible to supply the new Inteligence and Reconnaissance Aircraft to the U.S. Army and U.S.Navy.

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 37 GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 38 ACS – Aerial Common Sensor

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 39 ACS – Aerial Common Sensor

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 40 Cost Effective Solutions

EMBRAER offers cost effective solutions for the Intelligence, Surveillance and Reconnaissance ISR Market Intelligence Surveillance Reconnaissance

EMB 145 AGS EMB 145 MP EMB 145 AEW&C Airborne Maritime Patrol Ground Surveillance

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 41 EMB 145 AEW&C

GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 42 GMS 146-A04 EMBRAER PROPRIETARY INFORMATION 43