2007* executive aviation embraer day 2007

8TH ANNUAL EMBRAER DAY - EMBRAER EXECUTIVE JETS OVERVIEW

HENRIQUE LANGENEGGER Vice-President, Programs, Executive Jets

November 14th, 2007

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.

All images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last page of this document/presentation.This presentation is the property of Embraer-Empresa Brasileira de Aeronáutica S.A.("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.

MARKET OVERVIEW

Corporate ProfitsGlobal 500 Industries

Profits Evolution


Profits Evolution

Source: Merrill Lynch / Cap Gemini Ernst & Young – 2007 World Wealth Report

2006

Indonesia

16.0%

Russia

15.5%

U.A.E.

15.4%

SouthAfrica

13.3%

Brazil

10.1%

CzechRepublic

12.6%

India

20.5%Germany

4.1%

US

9.4%

MAIN DEMAND DRIVERS


Individual WealthHNWI population growth

Stock market performanceIndex returns

Macro-economicfactors

GDP



GDP


GDP

Individual Wealth

HNWI population growth

MAIN DEMAND DRIVERS



2006

JapanNikkei 225

6.9%

10.7%

UKFTSE 100

13.6%

USS&P 500

32.9%

BrazilBOVESPA

46.7%

IndiaBombay Sensex

70.7%

RussiaRTS Index

96.4%

ChinaShenzhen A Shares


Profits Evolution




GDP

MAIN DEMAND DRIVERS

Source: Fortune 2007 Global 500 List

(US$ billion)

929.5

1,214.9

1,529.2

2004 2005 2006

31%

26%





Profits Evolution

2008-17e

5.2%

4.8%

6.5%

4.7%

4.5%

2.6%2.1%

3.3 %

MAIN DEMAND DRIVERS

Sources: Global Insight – Oct 2007

World

Latin America

6.1%

North America

2.1%

Western Europe

2.7%

Africa

5.9% Middle East

5.3%

Eastern Europe

7.2%

Asia Pacificnot including Japan

8.0%

3.6 %2007e





Profits Evolution


GDP


MAIN DEMAND DRIVERS


2006

Indonesia

16.0%

Russia

15.5%

U.A.E.

15.4%

SouthAfrica

13.3%

Brazil

10.1%

CzechRepublic

12.6%

India

20.5%Germany

4.1%

US

9.4%


MAIN DEMAND DRIVERS


2006

JapanNikkei 225

6.9%

10.7%

UKFTSE 100

13.6%

USS&P 500

32.9%

BrazilBOVESPA

46.7%

IndiaBombay Sensex

70.7%

RussiaRTS Index

96.4%

ChinaShenzhen A Shares



Corporate ProfitsGlobal 500 Industries – Profits Evolution

MAIN DEMAND DRIVERS

Source: Fortune 2007 Global 500 List

(US$ billion)

929.5

1,214.9

1,529.2

2004 2005 2006

31%

26%


Macro-economic factors GDP

2008-17e

5.2%

4.8%

6.5%

4.7%

4.5%

2.6%2.1%

3.3 %

MAIN DEMAND DRIVERS

Sources: Global Insight – Oct 2007

World

Latin America

6.1%

North America

2.1%

Western Europe

2.7%

Africa

5.9% Middle East

5.3%

Eastern Europe

7.2%

Asia Pacificnot including Japan

8.0%

3.6 %2007e


Fewer destinations Longer door-to-door time ��

“PREMIUM” CUSTOMERS ARE UNDERSERVED

76%

54%47%

71%

50%43%

19%

34%39%

18%

33%40%

5%12% 14% 11%

17% 17%

2000 2006 2010e 2000 2006 2010e

RP

K (

%)

Sources: Back AOG, Embraer analysis,

RegionalLow CostNetwork

USA Europe


HASSLE FACTOR: GROWING DELAYS

Congestion

USA

� 73% of pax at 35 hubs

� 80% of delays at main hubs

Europe

� 22% of flights with delays >15 min in 2006

Terrorism threat

� Higher security levels

� Poor passenger services

Sources: FAA 2005 and Eurocontrol 2006Heathrow airport after the London’s terrorist threat


CURRENT OFFER – CHARTER VS. AIRLINE

The right VLJ can fill the gap

$0

$2

$4

$6

$8

$10

0 100 200 300 400 500 600 700

Stage Length (nm)

Rou

nd T

ripP

rice

(US

$ x

1,00

0)

Light bizjet average price

Broad Gap

Preliminary data

Sources: The Air Charter Guide; Expedia; Embraer Analysis

Airline – Full Fare


INDUSTRY ANSWER: BUSINESS MODELS EVOLUTION

� Branded Charter

� Air Taxi

Commercial AviationFra

ctio

nal

Ow

ner

ship

Use

d F

ract

ion

al

Jet

card

s m

emb

ersh

ips

Air

craf

t M

anag

emen

t

Ch

arte

r O

n-D

eman

d

Sch

edu

led

Ch

arte

r

“Biz

av”

Air

line

Tra

dit

ion

al O

wn

ersh

ip

Cost

Source:: Embraer (adapted from Jet Solutions)

WONDAIR


Positive trend for executive jet demand

EXECUTIVE AVIATION – SUMMARY

� Strong economic drivers

� Expansion of non-traditional markets

� Increased acceptance of executive jets as a productivity tool

� Hassle factor driving customer dissatisfaction

� New business models bridging the gap between current alternatives

� New product launches

� Technological advances enabling very light jets


13,150 executive jets US$ 201 billion over the next 10 years��

* Not including new business models demand: 3,500 to 4,400 VLJs Source: Embraer Analysis

2008-2017 MARKET FORECAST – WORLD DELIVERIES


US$Product Categories

Ultra Large

Ultra-long Range

Large

Super Midsize

Midsize

Midlight

Light

Very Light* 26%

22%

9%

12%

11%

11%

7%2%

9%

7%

12%

16%

23%

21%

8%

4%

Units

VISION

To become a major player in the Business Aviation

Market by 2015 through innovative and

differentiating product and service solutions with

added value to our customers and shareholders.


EMBRAER PRODUCT PORTFOLIO

Ultra Large

Ultra-Long Range

Large

Super Mid-size

Mid-size

Mid-light

Light

Very Light


LEGACY 600®

THE WORLD DISCOVERS THE LEGACY 600®

(October 2007)

120 aircraft, 22 countries, the right choiceAll images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last

page of this document/presentation.This presentation is the property of Embraer-Empresa Brasileira de Aeronáutica S.A.("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.

2008 availability

LEGACY 600® – ENHANCED INTERIOR

� 6ft – 1.83m cabin(2" – 5 cm taller)

� Slim valance

Illustrative purposes only - some items may be optional


2008 availability

New seats





15" (4:3) Current 17" (16:9 ) New

� Widescreen 17” monitors

� Portable audio input


2008 availabilityAll images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last


2008 availability

� Increased food storage space

� Counter-top level ovens

� Two large retractable tables

� Larger trash container

� Single ice drawer (dual compartment)

� Larger water tank

� Relocated sink

� Wine Chiller and Refrigerator Option


LEGACY 600® – ENHANCED GALLEY


More than 30 a/c expected to be delivered in 2007.

2002 2003 2004 2005 2006 2007-2016

(December 2006)

15%

13.6%

13%

12%12%

10%

13 a/c13 a/c10 a/c

27 a/c

20 a/c

MARKET SHARE – SUPER MIDSIZE CATEGORY


Price: US$ 25.41 million as of Jan 1st, 2008** Jan 2008 economic conditions , FAA certification

PHENOM 100®

PHENOM 100® – FIRST FLIGHT

Illustrative purposes only


PHENOM 100® – CERTIFICATION & MATURITY CAMPAIGNS

� Total of 4 aircraft

� 2 fully instrumented

� 1 with interior for Function & Reliability

� 1 for Maturity campaign

� Approximately 1,200 flight test-hours for

Certification Tests

� Over 600 flight-hours for Maturity Campaign

� Full-scale Static and Fatigue tests

� Environmental, avionics, electrical

distribution & generation rigs


FIRST PHENOM 100® – FLIGHT TEST CAMPAIGN

On Going Tests

� Hydraulic, Environmental and Avionics testing

� Initial Performance and Flying Qualities Evaluation

� Stall Tests

Accomplished

� Preliminary GVT

� First Flight

� Initial Envelope Expansion

� Anemometric Calibration


SECOND PHENOM 100® – FLIGHT TEST CAMPAIGN

On Going Tests

� IFTD (In Flight Thrust Determination)

Accomplished

� First Flight

� Ground Test Vibration


Entry into Service: 2nd half 2008

FAA Price: US$ 2.98 million as of July 1st ** Jan 2005 economic conditions, FAA certification

PHENOM 300®

Greater comfort with no performance compromise

9 OCCUPANTS CONFIGURATION

PHENOM 300® – CABIN EXPANSION

17 ft 2in (5.23 m)

14 ft 9 in (4.50 m)

Original

New

14 in (0.35 m)

Illustrative purposes only – some items may be optional


Added flexibility – new interior options

Illustrative purposes only – some items may be optional

Entry-facing divan

Entry-facing seat

NEW CONFIGURATIONS TO BE OFFERED

PHENOM 300® – CABIN EXPANSION


THE WORLD ALSO DISCOVERS THE PHENOM JETS

(October 2007)

Phenom Jets – close to 600 firm orders in 40 countriesAll images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last


Entry into Service: mid-2009

FAA Price: US$ 6.65 million** Jan 2005 economic conditions, FAA certification

LINEAGE 1000®

LINEAGE 1000® – INTERIOR

Zone 1

Crew Lavatory

Galley

Zone 2

Zone 3

Zone 4

Zone 5

Baggage Compartment

Lavatory

Produced by

Designed byIllustrative purposes only

Welcome Area &

Crew Lounge


PATS AircraftPATS AircraftPATS AircraftPATS Aircraft

LINEAGE 1000® – INTERIOR FLEXIBILITY

Illustrative purposes only


LINEAGE 1000® – INTERIOR

Produced by Designed by

Preliminary data – illustrative purposes only


PATS AircraftPATS AircraftPATS AircraftPATS Aircraft

Entry into Service: 2nd half 2008

Price: US$ 42.95 million** Jan 2006 economic conditions, baseline configuration, FAA certification

EMBRAER PRODUCT PORTFOLIO

Ultra Large

Ultra-Long Range

Large

Super Mid-size

Mid-size

Mid-light

Light

Very Light


TWO NEW EXECUTIVE JET CONCEPTS PRESENTATION

Ultra Large

Ultra-Long Range

Large

Super Mid-size

Mid-size

Mid-light

Light

Very Light


EMBRAER MIDSIZE JET AND MIDLIGHT JET CONCEPTS

� Real Coast to Coast Capability

� 3,000 nm with 4 pax @ LRC

� 2,800 nm with 8 pax @ M 0.80

Concept Study

THE CONCEPTS

MSJ Performance

� Clean sheet design

� New generation concept incorporating extensive customers’ input

Design

� Unsurpassed cabin comfort and style

� Full stand up, flat floor cabin

The Interior Advantage

� Advanced and integrated cockpit

� State-of the-art avionics

� Embraer’s heritage in high dispatch reliability

Systems & Technology

A New Paradigm for the Segment

� Perfect for regional flights

� 2,300nm with 4 pax @ LRC

� 2,200nm with 8 pax @ M 0.78

MLJ Performance


Full stand-up cabin with flat floor

CROSS SECTION

6 ft

Concept Study


Unsurpassed Cabin Comfort in its Class

INTERIOR

FLOOR PLAN

1 – Galley

2 – Club Seat (3)

3 – Divan

4 – Lavatory

5 – Baggage Compartment (accessible in-flight)

6 – Climatized Baggage Compartment

Flight Direction

1

Concept Study


23

7

1

2

4

5

2

66

The Next Step in Intelligent Luxury

INTERIOR DESIGN

Concept Study


PERFORMANCE

RANGE CIRCLES - LOS ANGELES AND TETERBORO

8 Pax @ 200 lb, Mach 0.80, 2 Pilots @ 200 lb, 85% annual winds, SL, ISA, NBAA res., 3% allowance Concept Study


Unsurpassed Cabin Comfort in its Class

INTERIOR

1 – Galley

2 – Dual divan

3 – Club seats (2)

4 – Lavatory

5 – Baggage Compartment (accessible in-flight)

6 – Climatized Baggage Compartment

FLOOR PLAN

Concept Study


76

2

3

4

5

1

Flight Direction

PERFORMANCE

4 Pax @ 200 lb,LRC, 2 Pilots @ 200 lb, 85% annual winds, SL, ISA, NBAA res., 3% allowance

RANGE CIRCLES – LOS ANGELES AND ATLANTA

Concept Study


CUSTOMER SUPPORT& SERVICES

EMBRAER CUSTOMER SUPPORT & SERVICES - VISION

To become a leading Support & Services provider in the

Business Aviation Market by 2008 through a solid network,

genuine customer relationship and best practices.


CUSTOMER SUPPORT SOLUTION

Preliminary data� Service Centers Network - global coverage

� 3 Embraer service centers

� 4 new wholly-owned service centers: 3 in US, 1 in Europe; Authorized service centers network expansion

� Logistics and Parts Support

� Embraer Distribution Centers and third-party Logistics

� Phenom Jets Partner: UPS

� Field and Product Support

� Maintenance Tracking and Planning Service

� Call Center evolution into a Contact Center model by mid-2008

� Training Programs

� Phenom Jets: Embraer & CAE Joint Venture

� Phenom Jets Training Centers in USA and in Europe on entry-into-service

� Executive Care Programs


All 3 new facilities investment will total about us$ 40 million

GROUND BREAKING CEREMONIES – JULY 2007 Preliminary data – illustrative purposes only

Williams Gateway Airport, Mesa, AZ Bradley Int'l Airport, Windsor Locks, CT

EMBRAER OWNED SERVICE CENTERS NETWORK (USA)

Third New Executive Jets dedicated Service Center in Fort Lauderdale, FL


SERVICE CENTERS NETWORK

Contracted / Planned Authorized Network

Embraer Service Center

Worldwide Network (middle 2008): 45 Service Centers


PHENOM 100® & PHENOM 300® TRAINING LOCATIONS

USA Europe

First Training CenterUSA 2008DALLAS, TX

First Training CenterEurope 2009Burgess Hill, UK

Fourth FFS2012

Location TBD

Preliminary data

Second Training CenterUSA 2010TBD

Full Flight Simulator available at Phenom EISAll images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last


RESULTS

RESULTS – EMBRAER EXECUTIVE JETS

2005 2006 2005 2006 2005 2006

Revenues (US$ billion) Executive Aviation Share of Total Embraer

Renevue (%)

Bookings (US$ billion)

0.3

0.6

7.3%15.3%

~ 0.6

~2.0

Firm order backlog close to US$ 4 billion All images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last


US GAAP audited numbers

THANK YOU !

This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent. Embraer reserves the right to revise this document whenever occasioned by product improvements, governmental regulations or other good cause. All images: figures, finishing materials and colors are for illustration purpose only, and may not represent the real and final product accurately. Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis. All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical description and represent the only binding guarantee. In the event of any conflict between this presentation and the technical description, the technical description shall govern. Embraer midsize jet and midlight jet concepts are not being officially launched and they do not imply in any commitment by Embraer.

2007* executive aviation embraer day 2007

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