DB2 193-A06

DEFENSE AND GOVERNMENT

MARKET

EMBRAER DAY 2006

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 2

Light Combat

Transport

Training

ISR

SistemsAnd Services

MARKET NICHESMARKET NICHESMARKET NICHES

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 3

BUSINESS MODELBUSINESS MODELBUSINESS MODEL

Low level of investmentno capital risk

Non-recurring investments are paid by first clients

Very positive cash flowprograms

It means that Embraer Defense programs havehigh level of shareholder added value

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 4

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

SUPER TUCANO

Brazilian Air Force99 aircraft

Deliveries: 44

Colombian Air Force25 aircraft

First export contract5 will be delivered next

December, 7th

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 5

GOVERNMENT TRANSPORT MARKETGOVERNMENT TRANSPORT MARKETGOVERNMENT TRANSPORT MARKETADDRESSABLE MARKET

ASSESSMENTPassengers 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

AfricaFleet of 245 aircraft

62% are older than 20 years

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 6

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

TRANSPORT Equador – TAME - Two 170 and one 190 were deliveredAngola – One Legacy 600 contractedNigeria – Bauchi – One ERJ 145 contractedColombia – SATENA – One EMBRAER 170 contracted (plus two ERJ 145 andone EMBRAER 170 in leasing)

EMBRAER transport aircraft are being used by 10 governments

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 7

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

Santa Cruz de la Siera

Brazilian Air Force National Air Mail

BrazilianBrazilian AirAir Force Force NationalNational AirAir MailMail

Brazilian Air Force operatesseven ERJ 145 and two Legacy600 (pre-owned aircraft)

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 8

The Brazilian Air Force ISR Fleet is presentingoutstanding operational reliability levels (99%+)TheThe BrazilianBrazilian AirAir Force ISR Force ISR FleetFleet is is presentingpresenting

outstandingoutstanding operationaloperational reliabilityreliability levelslevels (99%+)(99%+)

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 9

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

ISRIntelligence Surveillanceand Reconnaissance

Greece

Mexico

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 10

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

COMMAND AND CONTROL

Systems Integration capabilities:

Ground Command Centers

Data-link systems

Decision Support Systems

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 11

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

Brazilian Air Force F-5 Modernization Program

Total Fleet: 46 aircraft9 were already delivered to Brazilian Air ForceIntegration of advancedfire control radar, avionics, new weapons andelectronic warfare package

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 12

PROPOSALS SUBMISSIONPROPOSALS SUBMISSIONPROPOSALS SUBMISSION

9 multi-mission Legacy India(target towing, aerialphotography, sigint) Decision expected in 200736 Super Tucanos TurkeyDecision expected in 2007

Various Government Transportbusiness opportunities

Total amount ~ US$ 1 billion

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 13

MARKET COVERAGEMARKET COVERAGEMARKET COVERAGE

Worldwide operationsFocus on:

Latin AmericaAsia (IndianSubcontinent andSoutheast Asia)AfricaSome countries in EuropeUSA

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 14

DB2 193-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 15