DB2 070-A08

Defense and Government

Market

March 2008

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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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�Low level of investment, no capital risk

�Non-recurring investments are paid by first client

�Very positive cash flow programs

Business Model

It means that Embraer Defense programs have

high level of shareholder added value. Besides that the

Defense Programs generate technological spin-offs

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Defense Products and Market Segments

Intelligence, Surveillance andReconnaissance

Training Combat

Transport Systems & Services

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DefensePrograms

Update

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SUPER TUCANOBrazilian Air Force (FAB)

� A-29 (Brazilian Air Force designation)

� 99 firm orders

� 58 delivered (44 twin-seater and 14 single-seater)*

� Four operational bases: Natal (Advanced training), Porto Velho, Boa Vista and Campo Grande AFB (operational squadrons).

Super Tucano FAB

* Feb 2008

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SUPER TUCANOColombian Air Force (FAC)

SUPER TUCANOSUPER TUCANOColombianColombian AirAir Force (FAC)Force (FAC)

� Fleet: 25 aircraft (twin-seater) (17 already delivered*)

� Two operational bases (Apiay and Barranquilla)

� Intensive utilization in COIN (Counter Insurgency) missions against the FARC

� Successful operations and attacks against the FARC’s leadership

� Fleet: 25 aircraft (twin-seater) (17 already delivered*)

� Two operational bases (Apiay and Barranquilla)

� Intensive utilization in COIN (Counter Insurgency) missions against the FARC

� Successful operations and attacks against the FARC’s leadership

Super Tucano FAC

* Feb 2008

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Super Tucano Flight Simulator

� Flight Simulator for the FAC’s Super Tucano

� Developed by Embraer

� Operational in the 1st semester 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)).

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� 8 firm orders (twin-seater version)

� First delivery: 12 months EDC

� Contracts already signed – pending Congress final approval.

� 8 firm orders (twin-seater version)

� First delivery: 12 months EDC

� Contracts already signed – pending Congress final approval.

SUPER TUCANODominican Air Force

SUPER TUCANOSUPER TUCANODominicanDominican Air ForceAir Force

Super Tucano – Dominican Air Force

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� Fleet: 46 aircraft

� F-5M (FAB’s designation)

� Air superiority fighter

�Modernization program

includes structural modification and upgrade of

avionics, sensors and armament system capability.

� 22 aircraft already delivered*

F-5BR

* Feb 2008

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� A-1M (FAB’s designation)

� Fleet: 53 aircraft

� Attack and reconnaissanceaircraft

� Contract: US$ 600M

� Modernization program includes upgrade of avionics, sensors and armament system capability, and fleet standardization.

� First deliveries in late 2010 and the last ones in 2014

� First prototype already in Embraer for modifications and initial tests, and first flight scheduled to late 2008.

AMX

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Transport aircraft

GreeceBelgium

India Colombia

Brazil

Brazil Ecuador

Nigeria

Thailand Angola

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Transport aircraft – new contracts

� Thailand Armed Forces (Army and Navy)

�2 ERJ 135 LR

�Royal Thai Army

�Royal Thai Navy

�Deliveries in the 2nd half 2008

� Pakistan Air Force

�2 Phenom 100 firm orders

� First delivery in Dec 2008

�2 other Phenom 100 under negotiation

� PetroEcuador (Ecuador)

�Ecuadorian State Oil Company

�ERJ 145 LR

�Delivery in September 2008

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Customer Support – new contract

� Package of maintenance services to theBrazilian Air Force� EEC – Legacy / EMB 145 fleet�CLS – EMB 120 Brasilia fleet

� Contract expected to be signed by1Q2008

� Contract value: around US$ 40M for 5 years

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DefenseProgramsProspects

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Super Tucano

FACh (Chilean Air Force)

� Up to 12 aircraft for advanced training

� RFP released in Jan2008

� Proposal delivered in Feb 2008

� Expected contract award in 2008

� Contract value: around US$ 150M

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Transport aircraft

� 2 EMBRAER 190 PR (Presidential Aircraft)

� Replacement of the B737-200

� New internal arrangement

� Extra range (additional fuel tanks)

� First delivery in early 2009

Brazilian Air Force

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Multimission Aircraft – Indian Air Force

�Decision expected until March 2009

� Contract value: around US$ 350M

�Proposal submitted in 2006

�9 Legacy 600 platforms:� 7 for COMJAM + target towing + aerophotogrametry + passenger transportation

� 2 SIGINT + passenger transportation

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EMB 145 AEW&C – DRDO/CABS – India

� Proposal submitted in 2007

�3 EMB 145 AEW&C platform modified to meet DRDO/CABS specific requirements

�Decision expected in 2008.

� Contract value: around US$ 250M

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

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EMBRAERC-390

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C-390

� Medium-sized military transport aircraft in development phase

� Derived from the EMBRAER 190 commercial jet.

� Capable to transport up to 19 ton (41,888 lb) of cargo

� Missions

�Troops and cargo transport

�Troops and cargo air delivery

�In flight refueling

�Medical evacuation

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C-390 – Status

� The C-390 Program was included in the Brazilian National Budget.

� Brazilian Air Force (FAB) already included this project in the Strategic Planning for thenext 4 years

� The total amount for the program’s budget is under discussion with the BrazilianGovernment

� Industrial partner countries and suppliers definition are under way and expected to befinalized by July 2008.

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