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 EMBRAER 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 Air Force 99 aircraft 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 Brazil) 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 > Colombia – 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 Brazilian Air 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.