May 17, 2005

1st Quarter 2005 Financial Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

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 Brazil 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.

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1Q05 Highlights

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Republic Airways Holdings added 16 firm and 34 option EMBRAER 170s to its order book. Of the 16 new firm aircraft, two were already accounted for in Embraer’s fourth-quarter 2004 order book.

Harbin Embraer announced on March 24, 2005 the sale of five ERJ 145s to China Eastern Airlines Jiangsu Ltd.

Embraer delivered its 900th jet of the ERJ 145 family to European customer Luxair.

Highlights

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Embraer signed in February a Memorandum Of Understanding with the Indian Defense, Research and Development Organisation to support the Indian Air Force new Airborne Early Warning & Control system development

The consortium formed by Embraer and the European Aeronautic Defense and Space Company (EADS) received approval to acquire 65% of OGMA -Indústria Aeronáutica de Portugal S.A., one of the largest maintenance, repair and overhaul facilities in Europe

Highlights

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Results & Performance

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Jet Deliveries

23

4340 42

30

1Q04 2Q04 3Q04 4Q04 1Q05

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

US$ million

Net Revenues and Gross Margin

626924 937 954

763

32.3%

35.1%37.6%

33.2%32.6%

1Q04 2Q04 3Q04 4Q04 1Q05

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Net Revenue by Segment and Market

1Q04 1Q05

Customer Sevices and Others 8%

Defense 21%

Commercial Airline Market

71%

Business Jet Market4%

Customer Services & Others 10%

Defense 10%

Commercial Airline Market

76%

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

US$ Million

Income from Operations

153123 127 142 125

16.3%14.9%13.6%13.3%

24.4%

1Q04 2Q04 3Q04 4Q04 1Q05

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Net Income

US$ Million

10380

114

8397

12.6%

8.7%

12.1%

16.5%

8.7%

1Q04 2Q04 3Q04 4Q04 1T05

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Accounts Receivable Breakdown

US$ Million

194 157 189 157250

271 315

514 529

607

1Q04 2Q04 3Q04 4Q04 1T05

Others Commercial Airline Market

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

US$ Million

Inventories

1,273 1,2471,390 1,428

1,570

1Q04 2Q04 3Q04 4Q04 1Q05

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Total Debt of US$ 1,037.7 Million

• Average cost in R$ = 14.8 %p/a

• Average cost in US$ = 5.3% p/a

Indebtedness

Long-Term Loan Average Maturity: 3 years and 3 months

Brazilian Currency

2%

Foreign Currency

98%

Long Term 78%

Short Term 22%

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Indebtedness Maturity

US$ million

101

312

191

156 45

232

1,037

Total Short Term 2006 2007 2008 2009 Beyond

2010

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

US$ Million

Net Cash (Debt) Position

178

304220

22

-166

1Q04 2Q04 3Q04 4Q04 1Q05

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Backlog and Delivery Forecast

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

ERJ 145 Family Orderbook

(as of 1st quarter, 2005)

82

47

20

15

FirmBacklog

8161,131233898Total

634892211681ERJ 145

741142094ERJ 140

1081252123ERJ 135

DeliveriesTotalOptionsFirms

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

15-352015EMBRAER 195

301

155

15

116

FirmBacklog

56744387357Total

-385230155EMBRAER 190

-15-15EMBRAER 175

56309137172EMBRAER 170

DeliveriesTotalOptionsFirms

(as of 1st quarter, 2005)

EMBRAER 170/190 Family Orderbook

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Backlog

US$ Billion

10.9 10.5 11.0 10.1 9.9

17.8 18.517.5

15.017.7

1Q04 2Q04 3Q04 4Q04 1Q05

Firm Options

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Jet Deliveries Forecast

4

32

59

96

160 161

131

101

148 145 145

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E 2006E

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