InstitutionalPresentation

November 2003

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.

Company Highlights

Highlights

One of the world’s major commercial

aircraft manufacturers

Significant market share

Global customer base

Renamed international partners

Excellent financial performance

Brazil’s largest exporter in 1999, 2000

and 2001

Global PresenceGlobal Presence

Located in São José dos Campos, BrazilDesigns and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales supportFloor space: 3.05 million sq.ft Number of employees in São José dos Campos: 10,464

Parent Company

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

São José dos Campos

Global PresenceGlobal Presence

Located in Eugênio de Melo, a district of São José dos CamposThis unit has a total area of 3.6 million sq. ft., of which 527.050 sq.ft. are industrial buildings used in the development and manufacturing of tooling equipment, piping, as well as for performing welding, milling and wire looming operations

Embraer Eugênio de Melo

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

São José dos Campos

Global PresenceGlobal Presence

Located in Gavião Peixoto, BrazilManufacturing facility that will host the final assembly activities of the company´s corporate and defense aircraft, as well as a runway for flight testsSite area: 4.12 million sq.ft.Number of employees: 329Start-up of operations in October 2001

Embraer Gavião Peixoto

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

BRAZILBolivia

Argentina

Peru

Colombia

Urugua y

Paci

fic O

cea

n

São P aul o

Venezuela

Chi

le

Paraguay

Atla

ntic

Oce

an

Gavião Peixoto

Global Presence

Operations in Brazil, USA, Europe, Asia and Austrália

BrasilGavião Peixoto

BotucatuSão José dos Campos

EUANashville

AtlantaPalm Beach Gardens

Fort LauderdaleFrança

Le Bourget

GBWeybridge China

BeijingHarbin

AustráliaMelbourne

CingapuraCingapura

April / 97: minimum of 3,200 people

12,227

6,087 4,319 4,4946,737

11,048

8,302

3,849

94 95 96 97 99 00 01 02

10,334

98

12,607

BRAZIL 11,779*

USA 484

CHINA 126

SINGAPORE 10EUROPE 199

AUSTRALIA 09

Sept 03

Number of Employees

* ELEB employees included

BusinessSegment

Diversification

Current SalesDistribution

FY2002

Expected Sales DistributionIn Five Years

Defense

Revenue Diversification

30%30%

CommercialCommercial70%70%

CorporateJets

CustomerService

Defense5%

Customer Services

6%Corporate Aviation

6%

Commercial83%

DefenseMarket

Defense Products

Today

Embraer’s Airline Customers

&Orderbook

193

156

20

17

FirmBacklog

6871,371491880Total

5091,130465665ERJ 145

741142094ERJ 140

1041276121ERJ 135

DeliveriesTotalOptionsFirm

ERJ 145 Family Orderbook

(September 2003)

ERJ 145 Order Book (as of August 2003)COUNTRY CUSTOMER FIRM OPTIONS TOTAL DELIVERED FIRM

ORDERS BACKLOGAustria RHEINTALFLUG 3 0 3 3 0Brazil RIO-SUL 16 0 16 16 0China SICHUAN 5 0 5 5 0England MANX 23 3 26 23 0

BRITISH MIDLAND 11 5 16 9 2BRYMON 7 14 21 7 0

France REGIONAL 17 0 17 14 3FLANDRE AIR 7 6 13 5 2PROTEUS 11 1 12 8 3

Germany CIRRUS 1 0 1 1 0Greece AXON 3 0 3 3 0Guadaloupe AIR CARAIBES 2 0 2 2 0Italy ALITALIA 14 7 21 13 1Holland KLM EXEL 3 2 5 3 0Luxembourg LUXAIR 9 2 11 9 0Poland LOT POLISH 14 0 14 14 0Portugal PORTUGALIA 8 0 8 8 0Sweden SKYWAYS 4 10 14 4 0Switzerland CROSSAIR (SWISS) 25 15 40 25 0U.S.A. EXPRESS JET (COEX) 245 100 345 187 58

AMERICAN EAGLE 136 42 178 56 80WEXFORD 38 0 38 38 0REPUBLIC (Chautauqua) 9 70 79 7 2TRANSTATES 15 17 32 12 3MESA 36 45 81 32 4GATX 1 0 1 1 0GECAS (PB Air - Thailand) 2 0 2 2 0US AIRWAYS 0 132 132 0 0

T O T A L 665 471 1136 507 158

EMBRAER 170/190 Family Orderbook

260150110EMBRAER 190

553308245Total

453015EMBRAER 195

248128120EMBRAER 170

TotalOptionsFirm

(September 2003)

In 3Q03 - US$ 27.7 billion in total orders, including US$ 10.4 billion in firm orders

Backlog

US$ billion

10.410.37.99.010.711.4

6.44.13.01.2

17.316.8

11.313.2

12.712.7

11.3

0

5

10

15

20

25

30

1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03

OptionsFirm Orders

1.23.0

4.1

17.7

24.1 23.4 22.2

19.2

27.1 27.7

Airline Market Trends and

Outlook

Orlando José Ferreira NetoDirector of Market Intelligence

Scheduled airline services (aircraft from 19 up to 120 seats):Capacity share % by region

NorthAmerica54%North

America54%

Latin America

& Caribbean9%

Latin America

& Caribbean9%

Europe26%Europe26%

China1%

China1%

Africa &Middle East

4%Africa &

Middle East4%

Regional Airline Market

Fleet in Service

Turboprop 6262 Regional Jet 2402Total Fleet Turboprop 3047 Regional Jet 2292Total Fleet Turboprop 6262 Regional Jet 2402Total Fleet Turboprop 3047 Regional Jet 2292Total Fleet

1293Regional Jet

1244Turboprop

1293Regional Jet

1244Turboprop

168Regional Jet

348Turboprop

168Regional Jet

348Turboprop

66Regional Jet

181Turboprop

66Regional Jet

181Turboprop94Regional Jet

532Turboprop

94Regional Jet

532Turboprop

55Regional Jet

12Turboprop

55Regional Jet

12Turboprop

616Regional Jet

730Turboprop

616Regional Jet

730Turboprop

Asia/Pacific6%Asia/

Pacific6%

Source: OAG (Jan/2003), Fleet PC (Dec/2002)

Market Evolution - USA

Share of US Domestic Passenger Enplanements

Source: AvStat Associates, Inc. analysis of U.S. DOT data.

91%84%

71% 65%

7%16%

19%

5% 9% 13% 16%3%

0%

20%

40%

60%

80%

100%

1980 1990 2000 2002

Majors Low Cost/New Entrants Regionals

Share of Intra-European RPKs

86% 82% 82% 81% 79% 78% 73% 73%

8%

14% 17% 17% 17% 18% 17% 19% 19%

8%1%

1% 1% 2% 4% 5%

0%

20%

40%

60%

80%

100%

1995 1996 1997 1998 1999 2000 2001 2002

Majors Low Cost Regionals

Source: AEA, ERA, ATI2002 Low Cost Data Estimated

Low Cost: easyJet + Go + Ryanair

Market Evolution - Europe

-3% -1% -1% -3% -2%

-33%

-18%-13%

-6%-12% -10% -7%

-11% -8% -7% -7% -7%

29%

13%

2%

14%

-2%

17%9% 7%

2% 2% 1%6%

13%5%

14%

2%

15% 18%23%

34% 32% 34%27%

20%

71%

37%

28%

41%

31%

-21%

3%0%5%

-23%

-2%

Jan/

01 Feb

Mar

Apr

May

Jun/

01 Jul

Aug Se

p

Oct

Nov

Dec

/01

Year

200

1

jan/

02 Feb

Mar

Apr

May

jun/

02 Jul

Aug Se

p

Oct

Nov Dec

Year

200

2

RPM

Gro

wth

- Yr

/Yr %

Cha

nge

Domestic ATA Regional RAA

Source: Top Regionals, RAA, ATA

Airline Market - USA

12%

4% 4%5%

-1%

5%4% 4%

-3%

-12%-13%-13% -12%

-9% -9% -9%

-6%

-9% -10%-7%

-2%

8%6%

9%

-5%

13%

7%9%

4%

9% 8% 8%

4%6% 6% 8%

10% 10%8%

4% 4% 4%6%

13%

18%

13%15%

9%

0,3%

5%

2%

-5%

Jan/

01 Feb

Mar Ap

r

May

Jun/

01 Jul

Aug

Sep

Oct

Nov

Dec/

01

Year

200

1

Jan/

02 Feb

Mar Ap

r

May

Jun/

02 Jul

Aug

Sep

Oct

Nov

Dec

Year

200

2

RPK

Gro

wth

- Yr

/Yr %

Cha

nge

Intra European+Domestic AEA Regional ERAA

Airline Market - Europe

Source: ERAA, AEA

Source: Back OAG (American, Continental, Delta, United, and US Airways)

Turboprop ReplacementJet Replacement

Industry in Transition after Sep 11th

Rightsizing Capacity vs. Demand: Routes Transferred to RJs

Source: Back OAG Air France, Alitalia and British Airways

Rightsizing Capacity vs. Demand: Routes Transferred to RJs

Turboprop ReplacementJet Replacement

Industry in Transition after Sep 11th

Source:

US Domestic Yield Evolution

10

11

12

13

14

15

16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Yiel

d (U

S¢/R

PM)

1998 1999 2000 2001 2002 2003

An Industry in Transition

• Fundamental Correction – Not a Traditional Cycle

• Decreasing Average Fare Values

• Decreasing Capacity (USA)

• Increasing Low Cost Carrier Critical Mass

• Increasing Regional Jet Critical Mass

• Pressure on Existing Worldwide Airline Model

• Major USA Airlines re-inventing themselves

• Regional affiliates strongly being used as defensive tools (point-to-point X hub and spoke)

• Low cost carriers being inserted in the current airline model

3. Optimization of Old and Inefficient NarrowbodyServices

• Rightsizing aircraft capacity with demand

• Long & thin routes• New market opportunities• Profit potential

Sustaining Regional Jet Growth

1. Turboprop Substitution• Productivity improvements

• Passenger jet preference

2. Frequency, Frequency . . .

Regional Jet Networks - USA

Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)

Jan 1995 – 76 Routes

Jan 2003 – 1874 Routes

Jan 1995 – 104 Routes

Jan 2003 – 1072 Routes

Regional Jet Networks - Europe

Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)

High Frequency Services

From Manchester, UK Airlines: BDTo Edinburgh, UKDate Jan/2003

Days Depart Arrive Eqp Stop Duration

xSaSu 7:00a MAN 07:55a EDI ER3 0 00:55

xSaSu 8:55a MAN 09:50a EDI ER4 0 00:55

xSaSu 12:15a MAN 01:15p EDI ER4 0 01:00

xSaSu 5:00p MAN 06:00p EDI ER4 0 01:00

xSaSu 7:55p MAN 08:50p EDI ER4 0 00:55

Jet Complement

From Düsseldorf, Germany Airlines: AZTo Milan, ItalyAircraft type: 50 seats Regional Jets January 2003

Origin Destination Range Eqp Days of Departure Arrival(km) Operation

07:45p

05:30p

11:45a

07:00a

08:35p

04:10p

11:45a

07:00a

daily

daily

daily

daily

daily

daily

daily

daily

09:20p

07:05p

01:15p

08:30a

10:10p

05:45p

01:20a

08:35a

DUS

DUS

DUS

DUS

DUS

DUS

DUS

DUS

ERJ 145644MXP

A319644MXP

A319644MXP

ERJ 145644MXP

ERJ 145644MXP

ERJ 145644MXP

ERJ 145644MXP

MD80644MXP

07:45p

05:30p

11:45a

07:00a

08:35p

04:10p

11:45a

07:00a

daily

daily

daily

daily

daily

daily

daily

daily

09:20p

07:05p

01:15p

08:30a

10:10p

05:45p

01:20a

08:35a

DUS

DUS

DUS

DUS

DUS

DUS

DUS

DUS

ERJ 145644MXP

A319644MXP

A319644MXP

ERJ 145644MXP

ERJ 145644MXP

ERJ 145644MXP

ERJ 145644MXP

MD80644MXP

Janu

ary

2002

Janu

ary

2003

Jet Replacement (Rightsizing)

Orig Dest Duration Range Eqp Monthly FrequenciesJan 02 Aug02 Jan03

BHX FRA 01:40 766 A319 49 47 0ER4 56 26 76

BHX GLA 01:00 415 A319 127 114 0ER4 54 58 57

BHX AMS 01:15 443 B737 4 43 0RJ 95 61 84

BHX DUS 01:20 597 B737 79 74 0ER4 26 33 29

BHX EDI 01:00 402 A319 149 152 0ER4 32 0 34

From Birmingham, UK Airlines: BATo EuropeDate Jan/2003

Responding to Market Needs

37 Seats

44 Seats

50 Seats

• Same engine (AE 3007) hardware

• Same systems and components

• Same ERJ crew type rating

• Common maintenance and training procedures

• Common ground support equipment

Aircraft Commonality

ERJ’s share 95% parts, systems and training commonality within the aircraft family

FA 05/May/03

The ERJ 135/140/145 Family Operators havethe necessary infrastructure to support

ERJ 145XR operations

Interior – Cross-Section

(.41 m)

(.44 m)

17.3 in

16.1 in

73.0in(1.85 m)

(2.53 m)99.5 in

CRJ200

(.44 m)

17.0 in

(.43 m)

83.0 in(2.10 m)

72.0 in(1.82 m)

17.3 in

ERJ 145

Exclusive businessman’s dream premium single seats.One additional inch in aisle width allows easier passenger access.11% more cabin width per seat provides more shoulder clearance.

ERJ 145 advantages:

3 abreast grants passengers their most desirable seat.

Typical OEWTypical Mission ReservesA1/3 EnginePax @ JAR-OPS RulesISANo wind

ERJ 135: Steep Approach CapableRange from LCY 350 – 600 nm

Field Performance

“Overall, the ERJ 145 has the lowest per trip costs (of all compared aircraft in its class) ...”

AIRCRAFT ECONOMICS -issue 47 - Jan/Feb 2000

As seen from the Aircraft Economics final comparison chart the ERJ 145 has 8.8% lower DOC per trip than the CRJ200.

Operating Cost

Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.

The Aircraft Commerce magazine article confirms the operating costs advantage of the ERJ 145 to be around 10% better than the CRJ200.

The ERJ 145 offers aircraft-mile costs between 9% and 11% better than the CRJ.

AIRCRAFT COMMERCE issue 6 - Jul/Aug 1999

Operating Cost

Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.

Aircraft Economics magazine article credits again operating costs advantage to the ERJ 145 over the CRJ200.

The ERJ 145 offers 7% better aircraft-mile costs than the CRJ200.

AIRCRAFT ECONOMICS issue 61 - Jan/Feb 2002

Operating CostMajor airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.

2002

2001

2000

1999

199819971996

19950

100.000

200.000

300.000

400.000

100 300 500 700 900 1100 1300

Sector Distance (Miles)

Annual Flights

Evolution to Longer Stage Lengths

Embraer’s answer to the market request for longer range missionsEmbraer’s answer to the market

request for longer range missions

First Delivery 24th October 2002

First Delivery 24th October 2002

Introducing the ERJ 145 XR Version

FA 05/May/03

ERJ 145 XR2,000 nm Range

ERJ 145 XR2,000 nm Range

RJ Network – USA (Oct/2003)

Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)

< 2 Hours

2 to 3 Hours

> 3 HoursRegional Jets

Routes< 2 Hours

2 - 3 Hours> 3 Hours

Total68%23%

GrowthJan - Oct 2003

9%78%

• lower fuel consumption• superior single engine ceiling• VMO, MMO and VFE increases

• increased range • better field performance• improved hot & high operation

AE3007A1E engineAE3007A1E engine

WingletWinglet

Supplementary fuel tank insidewing to fuselage fairings

Supplementary fuel tank insidewing to fuselage fairings

Reinforced fuselage structureto allow higher design weightsReinforced fuselage structureto allow higher design weights

ERJ 145 XR Design Features

ERJ 145 XR2,000 nm

Houston

Evolution of RegionalNew Nonstop Market Opportunities

FAR Reserves

Taxi allowance14 minutes

Air Maneuvers3 minutes

Long Range Cruise

Pax Weight & Baggage 90.7 kg (200 lb)

85% Annual Winds

Range Capability from Denver

BOW with thrust reverser

Airp. temp. @ 36ºC (99% summer reliability)

Airp. temp. @ 28ºC(85% summer reliability)

ERJ 145 XR

ERJ 145 Family offers outstanding performance from Hot & High airports

1340 nm

.

Maximum Take Off Weight 24,100 kg 22,000 kg 24,041 kg

Maximum Landing Weight 20,000 kg 19,300 kg 21,319 kg

Maximum Zero Fuel Weight 18,500 kg 17,900 kg 19,958 kg

Basic Operating Weight 12,838 kg ¹ 12,361 kg ¹ 13,834 kg

Maximum Fuel Load 6,032 kg 5,187 kg 6,489 kg

Maximum Payload 5,662 kg 5,539 kg 6,124 kg

Maximum Useful Load 11,262 kg 9,639 kg 10,207 kg

Structural Design Efficiency ² 0.88 0.78 0.74

Standard Single Class Seating 50 50 50

Design Weights

†

¹ Includes reinforced cockpit door and all typical options such as thrust reversers, navigation equipment, etc.² Structural Design Efficiency = Max Useful Load / Basic Operating Weight

ERJ 145 LR CRJ200 LRERJ 145 XR

6% better

19% better

ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency. ERJ 145XR is 19% better than CRJ200 in SDE, leading therefore to lower operating costs.

Engines AE3007 A1E AE3007 A1 CF34-3B1

Block Time 80 min 80 min 80 minISA enroute, max pax @ 90.7 kg14 min taxi, FAR reserves, 100 nm alternate

Block Fuel 1,309 kg 1,304 kg 1,315 kgISAenroute, max pax @ 90.7 kg14 min taxi, FAR reserves, 100 nm alternate

Take Off Field Length 1,460 m 1,435 m 1,455 mISA, SL, max pax @ 90.7 kgFAR reserves, 100 nm alternate

Landing Field Length 1,315 m 1,315 m 1,415 mISA, SL, max pax @ 90.7 kgFAR reserves, 100 nm alternate

ERJ 145 XR CRJ200 LR50 pax 50 pax

ERJ 145 LR50 pax

400 nm sector

Performance - Mission

Block Times and Block Fuels are about the same for all models.

234 234 234

155 155 155

271 281 310

39 4043

0

100

200

300

400

500

600

700

800

ERJ 145 LR50 seats

ERJ 145 XR50 seats

CRJ200 LR50 seats

CO

C/T

rip (U

S$)

CREW FUEL MAINTENANCE FEES

COC per Trip

699 710742

500 sm sector

ERJ 145 XR offers further advantages at no additional operatingcost with regard to LR version.

Economic Assumptions (USA)Utilization 2,500 FH/yearFuel price 0.75 USD/USGalFuel density 6.7 lb/USGalCrew Function of Block TimeLanding fees Function of MLWMaintenance Period 5 yearsMaint, Labor 25.00 USD/MH

ERJ 145 XR Compared to CRJ 200 LR - SUMMARY

List Prices (K US$ - e.c. Dec 2002)

Performance

• Lower Basic Operating Weight

• Better SDE (Structural Design Efficiency)

• More integrated systems

• ERJ 145 XR : 21,300• CRJ 200 LR : 23,200

• Higher range @ 50 pax• Better Hot & High performance

Design

• Lower approach speeds

• Better short field performance

Operational Characteristics

Economics• Better Operating Costs

Range*1,750 nm

CRJ200 LR

ERJ 145 XR

Range*2,000 nm

* @ MTOW, LRC, 50 pax @ 90.7 kg.

0

50

100

150

200

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

ERJ145LR

Source: US DoT O&D data, 2Q, 2002, EmbraerStage Length – Miles

US Domestic Passenger DemandPa

ssen

gers

per

Day

Eac

h W

ay

ERJ145ER

ERJ135 ER ERJ135 LR

ERJ 145 Family Positioning

ERJ145 XR

Opportunities Beyond the

Current Airline Model

Seat Capacity

25 50 75 100 125 150 175+

B75

7

B73

7

A32

0

A31

9

CR

J

B75

7

B73

7

B73

7

B73

7

ERJ

B75

7

B73

7

MD

80

ERJ +

CR

J

B75

7

B73

7M

D80

B73

7

ERJ +

CR

J

B75

7

A32

0

MD

80B

737

A32

0

B73

7A

319

ERJ +

CR

J

B75

7

A31

9

A32

0

ERJ +

CR

J

70 to

110 Seats

Widening Seat Capacity Gap - USA

No Artificial Constraints in Europe

25 50 75 100 125 150 175+Seating Capacity

37 – 8037 37 –– 8080 103 – 270+103 103 –– 270+270+

37 – 8537 37 –– 8585 112 – 206+112 112 –– 206+206+

50 – 7050 50 –– 7070 109 – 169+109 109 –– 169+169+

44 – 7044 44 –– 7070 131 – 283+131 131 –– 283+283+

50 - 8050 50 -- 8080 108 – 189+108 108 –– 189+189+

110 – 180+110 110 –– 180+180+50 50 –– 111111

50 – 213+50 50 –– 213+213+

70 to110 Seats

70 to110 Seats

34% of flights depart with loads

appropriate

for 100-110 seat aircraft27% of flights depart

with loads appropriate

for 70-80 seat aircraft

The Need for 70-110 Seat Jets

Passengers per Departure<50<50 5050 100100 140140

17%

3%

2%

4%

9%

14%

17%

13%

8%7%

4%

2%

Per

cent

age

of

Tota

l Dep

artu

re

6060 7070 8080 9090 110110 120120 130130 >150>150Source: Back (US DOT T100 Jan-Sep 2002)

Rightsizing and Frequency IncreaseAverage Daily Frequency by City-pairRoutes operated by Jet Aircraft from 91 – 175 seats up to 2000 nm

Source: OAG (Jan/2003)

Market Opportunities - Global

33%

27%

20%

12%

7%

0 - 0,5 0,5 - <2 2 - < 5 5 - <10 >=10

Average Daily Frequency

City

Pai

rs

5150 city pairs with less than 2 average daily frequency

Replacement of Ageing AircraftFleet in Service (61-120 seat segment - Dec/2002)

Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)

Market Opportunities - Global

372

208

108

277

330

453

304

0

100

200

300

400

500

0 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30

Aircraft Age (Years)

Num

ber o

f Airc

raft

689 aircraft with more than 20 years(34 % of total fleet in service)

70 – 78 Seats

78 – 86 Seats

98 - 106 Seats

108 – 118 Seats

Introducing the E- Jets

E-ngineering – 21st Century Aircraft

Applying Technology . . .

• Virtual reality tools

• On-board CMC

• Fly-by-wire

• Full redundant FADEC

• Fully digital “quiet&dark” cockpit

• Top systems/avionics integration

• World-class parterships

• Smart use of composite materials.

…to create value to Customer• Reduced time to market

• Reduced pilot workload

• High strutural design efficiency

• Minimum down time (TAT, checks)

• Easy maintenance diagnosis

• Low maintenance cost

• Reduced fuel consumption

• Cross crew qualification (CCQ)

• Easy aircraft handling

• Optimized mission performance

• High schedule realiabilty.

Two’s Company – Three’s a Crowd

Everyone gets a window or aisle seat.

E-rgonomics – Cabin Spaciousness

Everything you expect…

… in a First Class cabin

• Single seat

• Exclusive environment

• Partition

• Stowage

• Catering

• Seat comfort

• Exclusive lavatory

Everything you DON’T expect…… in an Economy cabin

• Middle seat X

X• Cramped seating

X• Narrow aisle

X• Single lavatory

X• Limited baggage space

X• Limited catering capabilities

• “Cattle” feeling X

E-conomics – Profitable by Design

*Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98

USA Environment

EMBRAER 170 78 seat

EMBRAER 17586 seats

EMBRAER 190106 seats

EMBRAER 195118 seats

PROFITBREAK-EVEN*

40 PAX (51%) 38 PAX

44 PAX (51%) 42 PAX

57 PAX (54%) 49 PAX

62 PAX (53%) 56 PAX

*Based on Total Operating Cost500 sm for EMBRAER 170/175600 sm for EMBRAER 190/195

EC 05/May/03

EMBRAER 190

EMBRAER 170

EMBRAER 195

EMBRAER 175

FAR Domestic Reserves

Taxi allowance14 minutes

Air Maneuvers3 minutes

CruiseISA

Wind85% Annual Reliability

Pax Weight & Baggage90.7 kg (200 lb)

E-fficiency – Range from Dallas

Typical European OEWTypical Mission ReservesE5A1 EnginePax @ 90.7 kg (200 lb)ISANo wind

EMBRAER 170: The best field performerRange from LCY 600 nm

E-fficiency – Field Performance

EmbraerMarket

Forecast

World (30-120 seat segment): 8,610 jets (US$180 billion)

4,750

1,7001,6001,450

2014 - 2023

8,450

2,9502,9002,600

2004 - 2023

3,700TOTAL

1,25091 – 1201,30061 – 901,15030 - 60

2004 - 2013Segment

World Deliveries by Segment - Jets

Market Forecast 2004-2023

AsiaPacific

4806%

AsiaPacific

4806%

China6358%

China6358%

USA, Canada& Caribbean

4,74056%

USA, Canada& Caribbean

4,74056%

30 - 120 Seats: 8,450 Jets

Europe, Middle East

& Africa1,97023%

Europe, Middle East

& Africa1,97023%Latin

America6257%

LatinAmerica

6257%

Market Forecast 2004-2023

2004-2023Sources 30-60 61-90 91-120 Total 30-60 61-90 91-120 Total TotalAirclaims 1794 1135 914 3843 1071 2428 1886 5385 9228

Bombardier 1677 1555 3232 2183 3152 5335 8567Rolls-Royce 1394 1113 589 3096 1510 1799 932 4241 7337

Snecma 1786 805 899 3490 1867 904 1075 3846 7336GE 1194 797 950 2941 1250 898 1134 3282 6223

Boeing 1337 562 1300 3199 1399 659 1554 3612 6811Average 1530 995 930 3455 1547 1640 1316 4503 7958

Embraer 1150 1300 1250 3700 1450 1600 1700 4750 8450

2004-2013 2014-2023

Market Forecast (Jets)

Embraer forecast is more conservative whencompared to other forecast sources

World (Total Deliveries)External Sources

30 - 60 Seats: 2,600 Jets

Embraer Market Forecast 2004-2023

Europe, Middle East

& Africa355

14%

Europe, Middle East

& Africa355

14%

USA, Canada& Caribbean

1,870 (840 + 1030)71%

USA, Canada& Caribbean

1,870 (840 + 1030)71%

China2008%

China2008%

AsiaPacific

803%

AsiaPacific

803%

LatinAmerica

954%

LatinAmerica

954%

45%

50%

5%

Embraer Bombardier Others

North America

30-60 SegmentCurrent Market Share

ERJ 145 XR Potential Market in 10 years

North America

New DeliveriesTotal 30-60 Segment

840 to 1100 Aircraft

380 to 500ERJ 145 Family

North America

New Deliveries

ERJ 145 XR Market Potential

25% - 30% of total ERJ 145 Family Deliveries

100 to 150 Aircraft

210 to 300 Aircraft in 20 years