Embraer Day 2006

November 17th,2006

Luís Carlos AffonsoExecutive Vice-President, Executive Jets

Embraer Day 2006Executive Aviation Overview

November 17th,2006

Luís Carlos AffonsoExecutive Vice-President, Executive Jets

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.

Market

Main demand driversStock market performance

Corporate Profits Individual Wealth

Macro-economic factors (GDP)

Source: Global Insight – May & September 2006

WORLDAsia Pacific

not including Japan

6.4%

Latin AmericaAfrica

Middle East

Eastern Europe

2006e

North America

3.4%

Western Europe

2.6%

4.8%

5.6%7.2%

5.3%

3.9 %

4.0%

5.1%5.8%

4.2%

4.5%

2007-16e

3.0%2.1%

3.2 %

Worldwide deliveries of new executive jets2006e: + 16% 2007-2016e: + 3.7% (cagr)

Shifting Demand

Russia: 70 aircraft expected to be sold by year-endMiddle East: 5.2% fleet growth since 2000Eastern Europe:19,1% fleet growthLatin America: significant light jets demandAsia: 50% deliveries increase in 2005

*Source: Honeywell Survey**Source: AMSTAT, Embraer Analysis

Significant demand shifting towards non-traditional markets

5 year buying expectations*

Europe12.6%

North America

60.7%

M East &Africa 4.0%

Asia12.8%

L. America9.8%

85%76%

64%51%

12%19%

27%37%

3% 5% 9% 12%

Lower number of destinations Greater door-to-door elapsed time

RegionalLow CostNetwork

“Premium” customers are under servedUSA Europe

Source: Embraer analysis.

1995 2000 2005E 2010E

5%

11% 19%35%

8% 17% 16% 15%

72% 65%50%

87%

1995 2000 2005E 2010E

Increased hassle factor Benefits Business Aviation

Hassle factor: Growing delays

USA73% of pax at 35 hubs

90% of delays at main hubs

Sources: FAA 2005Eurocontrol 2006

Europe13% flight delays increase in 2005

20% more than 15 min delay

AVIÔES EM FILA

MIA

Heathrow airport after the London’s terrorist threat

Source:: Embraer (adapted from Jet Solutions)

Year

ly To

tal C

ost

Frac

tiona

l Own

ersh

ip

Used

Fra

ctio

nal

Jet c

ards

mem

bers

hips

Airc

raft

Mana

gem

ent

Char

ter O

n-De

man

d

Sche

duled

Cha

rter

“Biza

v” A

irlin

eTrad

ition

al Ow

ners

hip

Commercial Aviation

Cost

Industry answer: business models evolution

0

WONDAIR

Branded CharterNew Business modelsAir Taxi

State of Fractional Industry

2006E: 111 aircraft to be delivered Shares: 30% more flying hours since 2004Cards: 5,000 cards sold in 4 years

ChallengesOperational productivity – profit margins on operationShaping demand of cards – peak time vs. blackouts and discounts, higher pricesService improvements – customers seek elimination of hidden costsAccommodate labor costs – unionized pilots and escalating salaries

Fractional market is evolving

Flight Options Operations Center

Forecast

Business Aviation Market Size

Significant Expansion

15,7

1,12,4

4,2

4,7

2,2

19,5

1,22,7

4,8

6,7

3,9

2005 2016e

Airframe / OEM

Completion + Refurbishment

MRO

FBO

Charter + AircraftManagement

Fractional Ownership

Source: AT Kearney and Embraer estimates

(2005 US$ billion)

US$ 27.1 bi

US$ 38.9 bi

Historic Delivery Profile

Bizjet market is posed to set a new record

0

100

200

300

400

500

600

700

800

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

870+ULTRA LARGE

ULTRA-LONG RANGE

LARGE

SUPER MID-SIZE

MID-SIZE

MID-LIGHT

LIGHT

VERY LIGHT

Forecast

Forecasted Delivery Profile

Very Light Jets will drive an increased demand in industry deliveries

0

200

400

600

800

1000

1200

1400

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

ULTRA LARGE

ULTRA-LONG RANGE

LARGE

SUPER MID-SIZE

MID-SIZE

MID-LIGHT

LIGHT

VERY LIGHT

2,715*2,390

1,0801,305 1,250 1,310

850

215

2007-2016 Market Forecast (deliveries) - World

Very Light Light Midlight Midsize SuperMidsize

Large Ultra-longRange

Ultra-Large

11,115 executive jets US$ 169 billion in the next 10 years

Very Light23%

Light22%Midlight

10%

Midsize12%

Supermidsize11%

Large12%

Ultra-Long Range8%

Ultra-Large2%

* additional air taxi demand of 2,500-3,000 units

23%

22%

10%

12%

11%

12%8%2%

2007-2016 Market Forecast (deliveries) - WorldProduct Categories

11,115 executive jets US$ 169 billion in the next 10 years

ULTRA LARGE

ULTRA-LONG RANGE

LARGE

SUPER MID-SIZE

MID-SIZE

MID-LIGHT

LIGHT

VERY LIGHT

US$

* additional air taxi demand of 2,500-3,000 units 4%9%7%

11%

16%

24%

23%

6%

Units

Vision

To become a major player in the Business Aviation Market

within 9 years by providing innovative and differentiating

product and service solutions with added value to our

customers and shareholders.

Very Light

Light

Mid-light

Mid-size

Super Mid-Size

Large

Ultra-Long Range

Ultra Large

Embraer Product portfolio

Legacy™ 600

Phenom™ 300

Phenom™ 100

Lineage™ 1000

Legacy™ 600 Program Update

Competitive Analysis – Floor Plans

Superior Privacy and Comfort

The world discovers the Legacy™ 600

87 aircraft, 18 countries, the right choice

87TOTAL1AFRICA3LATIN AMERICA5MIDDLE EAST8ASIA32EUROPE38USA

08 Nov 2006

Legacy™ 600 Landmarks

Promises made … promises delivered

CTA / FAA / JAA / CIS

2002

Certification

Enhancements

2003 20052004

41,000 ftCeiling

New InteriorRange

LCYOperation

MaintenancePlan

Short Runway

Performance

HSD

9,500 ft Take-offLandingAltitude

SoundQuality

Improvement

2006

ICE – Air Show

System update

Avionics -New

weather radar

antenna

Interior enhancement

FMS - USB Data Loader

PDA Performance

SoftwareWhite LED

lighting

CTA / FAA / JAA / CIS

2002

Certification

Enhancements

2003 20052004

41,000 ftCeiling

New InteriorRange

LCYOperation

MaintenancePlan

Short Runway

Performance

HSD

9,500 ft Take-offLandingAltitude

SoundQuality

Improvement

2006

ICE – Air Show

System update

Avionics -New

weather radar

antenna

Interior enhancement

FMS - USB Data Loader

PDA Performance

SoftwareWhite LED

lighting

CTA / FAA / JAA / CIS

2002

Certification

Enhancements

2003 20052004

41,000 ftCeiling

41,000 ftCeiling

New InteriorNew InteriorRangeRange

LCYOperation

LCYOperation

MaintenancePlan

MaintenancePlan

Short Runway

Performance

Short Runway

Performance

HSDHSD

9,500 ft Take-offLandingAltitude

9,500 ft Take-offLandingAltitude

SoundQuality

Improvement

SoundQuality

Improvement

2006

ICE – Air Show

System update

ICE – Air Show

System update

Avionics -New

weather radar

antenna

Avionics -New

weather radar

antenna

Interior enhancement

Interior enhancement

Interior enhancement

FMS - USB Data Loader

PDA Performance

SoftwareWhite LED

lighting

Legacy™ 600 Landmarks

and more on the way

Bulkhead17” Monitor

Towbarless Tug

Enhancementsto come

EVS

EFB

Baggage compartmentenhancement

Operation in Cannes

DELIVERED

13%

12%12%10%

2002 2003 2004 2005 2006 2007-2015

25-30

Market share - super midsize category

Deliveries growth of 54% in 2005

1013 13

20

15%13.5%

July 2006

Phenom™ 100 and Phenom™ 300 Program Update

Integrated Development

Models from CATIA are used in CFD analysis…

Integrated Development

Digital Mock-ups & Virtual Reality Center

The Digital Mock-up is a high precision model that reproduces the final aircraft with high fidelity.

Phenom™ 100

Phenom™ 100

Preliminary data

Interior design - seamless cockpit & cabin design

Phenom™ 100Prodigy™ - Avionics based on Garmin system Preliminary data

45 cu.ft.45 cu.ft.

5 cu.ft.5 cu.ft.

Floor Plan

1 – Storage Area or Refreshment Center2 – Seats

3 – Work Tables4 – Storage Area5 – Lavatory

42

531

Preliminary data

3

Phenom™ 100

Performance Data

1,320 nmRange VFR**

3,400 ftTakeoff Field Length (ISA, SL, MTOW)

Phenom™ 100Characteristics

41,000 ftM 0.70

380 KTAS

1,160 nm

Maximum Operating AltitudeMMOHigh Speed Cruise

Range *

* NBAA IFR reserves (35 min) with 100 nm alternate; 4 occupants @ 200 lb

** VFR 45 min reserves; 4 occupants @ 200 lb

Preliminary data

Phenom™ 100

Air Taxi(20,000)

Fractional(12,000)

(8,000)

Charter &BrandedCharter

Preliminary data

Favors residual value

Phenom 100

Cycles

(2,000)Private Owner

EXTENDED LIFE35,000

Economic Life – 10 years typical utilization

Phenom™ 100Direct Operating Costs

Preliminary data

Phenom™ 100 DOC: US$ 440 / FH *20% lower than an entry level jet (CJ1)12% lower than King Air C90B for a 600 nm mission**

* Per B&CA assumptions – Typical Bizjet Operation** B&CA Operations Planning Guide – August 2005

Phenom™ 100 – Wind Tunnel Test Campaign

Design specifications confirmed

Phase I - USAUWAL - University of

Washington Aeronautical Laboratory Phase II - Brazil

CTA - General Command for Aerospace Technology Phase III - Russia

TsAGI – Central Aerohydrodynamic Institute

COMPLETED

2Q - 2006

4Q - 2005

2Q - 2005

Phenom™ 100 – Engine first flight

Successfully completed 4.2 hours of flying

COMPLETED

Pratt & Whitney Canada PW 617F

Oct 2006

Phenom™ 100 and Phenom™ 300 – Infrastructure

Phenom 100 sub-assemblies production hangar reconfigured

3Q - 2006BRAZIL

Construction of a 130,000 sq.ft. hangar began for Phenom 100

and Phenom 300 final assembly lines

Botucatu

BRAZIL

3Q - 2006

GaviãoPeixoto

Phenom™ 100 – Master Phase Plan

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42004 2005 2006 2007 2008

Entry Into Service

Business Plan Approval (Official “Go-Ahead”)

Business Plan Preparation

Business Case Approval

Joint Definition Phase

First Metal Cut

First Flight

Sub-Assembly

Final Assembly

Detailed Design and Flight Test Campaign

15.6 m50 ft 16 in

Phenom™ 300

by

Preliminary dataInterior designPhenom™ 300

76 cu.ft of baggage capacity – 66 cu.ft in a single compartment

Baggage Compartment - 66 cu.ft

FWD Baggage Compartment - 5 cu.ft

PhenomTM 300 - Baggage Capacity

Wardrobe - 5 cu.ft

The best baggage compartment in the category Preliminary data

PerformancePerformance Data

3,700 ftTakeoff Field Length

Phenom™ 300Characteristics

45,000 ftM 0.78

450 KTAS1,800 nm

Maximum Operating AltitudeMMOHigh Speed CruiseRange *

* NBAA IFR reserves (35 min) with 100 nm alternate; 6 occupants @ 200 lb each

Preliminary data

Phenom™ 300

Preliminary data

Totally new designed aircraft

45,000 ft ceiling6,000 ft cabin altitude @ 41,000 ft

7,000 ft cabin altitude @ 45,000 ft

Data link capability (road map)Trend and exceedance

Remote Diagnostic

Two way high speed

Phenom™ 300

Preliminary data

Totally new designed aircraft

High Availability - Low Turn-Around Time (TAT)Single Point RefuelingExternally Serviced LavatoryBrake-by-wire with standard anti-skid

Phenom™ 300 DOC: US$ 700 / FH *20% lower than a light jet (Hawker 400XP)*

16% lower than a mid-light jet (Citation Encore)*

Preliminary data

* Per B&CA assumptions – Typical Bizjet Operation

Direct Operating Costs

Phenom™ 300

Phenom™ 300

Preliminary data

Expert opinion

Phenom™ 300 – Wind Tunnel Test Campaign

End of test campaign

TsAGI – Central Aerohydrodynamic Institute - Russia

3Q - 2006

Phenom™ 300 – Master Phase Plan

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42004 2005 2006 2007 2009

Entry Into Service

Business Plan Approval (Official “Go-Ahead”)

Business Plan Preparation

Joint Definition Phase

Business Case Approval

Detailed Design and Flight Tests

Embraer LineageTM 1000 Program Update

Embraer LineageTM 1000 - Interior

illustrative purposes only

Embraer LineageTM 1000Preliminary dataLayout Configuration – flexibility

LineageTM 1000 Performance

Preliminary data* NBAA IFR reserves (35 min) with 200 nm alternate; 8 passengers @ 200 lb, ISA. Range circles consider 85% annual winds,, 3% allowance

Range: 4,200 nm*MMO : Mach 0.82

Priestman Goode is a design consultancy specializing in 3D branding.

They work in many different sectors, ensuring that the final design genuinely adds to the customer experience.

Embraer LineageTM 1000 - Interior

Design Office

Source: Priestman Goode website

Embraer LineageTM 1000 - Interior

DeCrane Aircraft is committed to providing the most effective, leading-edge solutions available.

PATS Aircraft, LLC. provides innovative solutions in response to the aviation industry's distinctive needs.

Interior Provider

Sources: DeCrane Aircraft & PATS Aircraft websites

Customer Support & Services

Vision

To become a leading Support & Services provider in the

Business Aviation Market within 3 years through a solid

network, genuine customer relationship and best practices.

Building Up Experience

37 years of customer support

Reputable Maintenance Services Excellent Parts Support & RepairsOutstanding Field & Tech. Support Comprehensive Training ProgramEmbraer Executive Care programs

Integrated Solutions

Embraer Service Centers Network in the U.S.

Exisiting Service Center

Embraer Owned Service Centers

Fort Lauderdale International, FL

Williams GatewayMesa, AZ

BradleyHartford, CT

New Service Centers

EAMSNashville, TN

Revamped Service Centers Network in the U.S.13 Authorized Service Centers

Cahokia, IL

Cleveland,OH

Wheeling, IL

Phoenix, AZ

Houston, TX

Augusta, GA

West Palm, FL

LAX, CA

Legacy 600 Authorized Service CentersLegacy 600 Authorized Service Centers

Enlarged and reconfigured network

Bedford, MA

Teterboro, NJ

Hillsboro, OR

Phoenix, AZ

Lincoln, NE

Lincoln, NE

Reputable Service Centers Network in the U.S.

Phenom 100 & 300Phenom 100 & 300Authorized Service CentersAuthorized Service Centers

From line to overhaul services

Hillsboro, OR

8 Authorized Service Centers

Moline, ILIndianapolis, IN

Grand Junction, CO

Dallas, TX

Greenville, SC

Enhanced Service Center Network in Europe

PT

FR

FranceLe Bourget

New

PortugalOGMA

Existing

TO BE APPOINTED.

Enhanced Service Center Network in EuropeLegacy 600Legacy 600

Phenom 100 & 300Phenom 100 & 300

More options, greater flexibility

Munich, GYMunich, GY

Zurich, SWZurich, SW

London, UKLondon, UK

Prague, CRPrague, CR

5 Authorized Service Centers

LuganoLugano, SW, SW

Broader coverage, greater convenience

Service Network for Embraer Executive JetsWorldwide Network (middle 2008): 45 Service Centers

7 Embraer Wholly Owned

38 Authorized Service Centers

Logistic Provider – PhenomTM 100 & PhenomTM 300

Rapid response

Outstanding Field and Product Support

20062006

Field SuportTeam 40%

growth

Field SuportTeam 40%

growth

Call Center at Embraer

headquarter fully dedicated to Legacy

technical support

Call Center at Embraer

headquarter fully dedicated to Legacy

technical support

Web Portal improvements

towards customer-centric focus

Web Portal improvements

towards customer-centric focus

Call Center evolution into a Contact Center

concept

Call Center evolution into a Contact Center

concept

Customer Care confirmation2008200820072007

Phenom 100 EISPhenom 100 EIS

Call Center

Web Portal

FieldSupport

Embraer Customer Care

Outstanding Field and Product Support

Maintenance Tracking and Planning Service

EMBRAER selected and contracted Flightdocs as the provider (august 2006)

Five Legacy are already taking advantage of the new service

Embraer Executive Care

Scheduled + basic unscheduled airframe parts

Parts freight

Parts for Service Bulletins, AD related

Embraer Maintenance Tracking & Planning SystemScheduled heavy checks labor (24 MO)

Labor, all scheduled tasksLabor, basic unscheduled tasksLabor on Service Bulletins, AD related

Mobile Rescue Team, AOG

Standard Intermediate EnhancedLegacy 600*Legacy 600*

* Only airframe. No engine included.

More levels of coverage

Embraer Executive Care

Standard Enhanced

Scheduled + basic unscheduled airframe parts

Airframe parts freight

Airframe parts for Service Bulletins, AD related

Embraer Maintenance Tracking & Planning SystemEngine CoverageAirframe Labor, Scheduled and Basic Unscheduled

Airframe Labor, Service Bulletins, AD related

Airframe Mobile Rescue Team, AOGEngine Life Limited Parts Coverage OPT.OPT.

OPT.OPT.

OPT.OPT.

High Utilizationabove 400 FH/y

Low Utilizationbelow 400 FH/y

Phenom 100 & 300Phenom 100 & 300

Different Levels of coverage

PhenomTM 100 & PhenomTM 300 Training

JointVenture

Commitment to deliver best training solution

69

First Training First Training Center USA Center USA

20082008

Second Training Second Training Center USACenter USA

20122012

First Training First Training Center Europe Center Europe

20092009

PhenomTM 100 & 300 Potential Training Locations

USAUSA EuropeEurope

Full Flight Simulator available at Phenom EIS

Sales and Production Plan

Sales in 2006

Lineage 1000Legacy 600

Phenom 100Phenom 300

US$ 1.8 billionTotal Sales (as of November 15th, 2006)

Phenom Family - more than 340 firm orders in 22 countries

The world also discovers the Phenom Family

(as of November 15th, 2006)

2007

Expected Production Plan – LegacyTM 600

Legacy™ 600

200620052004

25 - 3025 - 302013 (units)

Expected Production Plan – PhenomTM 100 & PhenomTM 300

2009

2008

120 - 150

15 - 20 (units)

(units)

Phenom™ 100

Phenom™ 100 & Phenom™ 300

2009

Expected Production Plan – LineageTM 1000

2008

3 - 4up to 2 (units)

Lineage™ 1000

Thank You !

Due to time span between the date of this document/presentation and the entry into service of

the aircraft, Embraer reserves the right to revise this document/presentation whenever

occasioned by product improvement, government regulations or other good cause.

The information contained herein is the property of Embraer S.A. and shall not be copied or used in any manner except with Embraer´s written consent.