2007 - 7th Annual U.S. Analyst & Investor Meeting Market Orverview Executive Aviation

7th Annual U.S. Analyst & Investor

Meeting

Luís Carlos AffonsoEmbraer Executive Vice-President, Executive Aviation

New York - April 11th, 2007

Market Overview

Industry - New Jets Deliveries in 2006

N/A1-Eclipse

225%134Boeing

13%213188Bombardier

24%307247Cessna

20%6151Dassault

35%2720Embraer

27%11389Gulstream

-0,7%140141Raytheon

18%885750*Total

11%109Airbus

20062005 Var. (%)OEMs

2 years backlog for most popular modelsSource:: GAMA *Considers 1 AvCraft Envoy 3 delivery

Shifting demand towards non-traditional markets

Sources: AMSTAT, Embraer Analysis and Honeywell

Europe12.6%

North America

60.7%

M East &Africa

4.0%

Asia

12.8%

L. America9.8%

� Russia

70 aircraft expected to be sold by year-end

� Middle East

5.2% fleet growth since 2000

� Eastern Europe

19,1% fleet growth

� Latin America

significant light jets demand

� Asia

50% deliveries increase in 2005

Honeywell Survey

5 years buying expectations

Embraer Forecast - Main Demand Drivers

Stock Market Performance

Corporate Profits Individual Wealth

Macro-economic factors (GDP)

Sources: Global Insight – May & September 2006 and GAMA

World

Asia PacificNot including Japan

6.4%

Latin America

Africa

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 jets

2006: + 18% 2007-2016e: + 3.7% (cagr)

“Premium” customers are under served

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

Sources: Back AOG, Embraer analysis,

USA Europe

76%

54%47%

71%

50%43%

19%

34%39%

18%

33%40%

5%12% 14% 11% 17% 17%

2000 2006 2010e 2000 2006 2010e

Network Low Cost Regional

RP

K (

%)

Hassle factor: growing delays

Sources: FAA 2005 and Eurocontrol 2006

Terrorism threat

Higher security levels

Poor passenger services

AVIÔES EM FILA

MIA

Heathrow airport after the London’s terrorist threat

Congestion

USA

73% of pax at 35 hubs

90% of delays at main hubs

Europe

13% flight delays increase in 2005

Current Offer – Charter vs. Airline

The right VLJ can fill the gap

Preliminary data

$0

$2

$4

$6

$8

$10

0 100 200 300 400 500 600 700

Stage Length (nm)

Ro

un

d T

rip

Pri

ce(U

S$

x 1,

000) Light bizjet average price

Airline – Full Fare

Sources: The Air Charter Guide; Expedia

Huge Gap

Industry answer: business models evolution

Source:: Embraer (adapted from Jet Solutions)

Fra

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

lineTra

dit

ion

al O

wn

ersh

ip

Commercial Aviation

Cost

WONDAIR

� Branded Charter

� New Business models

� Air Taxi

2007-2016 Market Forecast (deliveries) - World

23%

22%

10%

12%

11%

12%

8%

2%

Product 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

* additional air taxi demand of 2,500-3,000 units4%9%

7%

11%

16%

24%

23%

6%

US$Units

Source: Embraer Analysis

Forecast

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

2007-2016 Forecasted Delivery Profile

* additional air taxi demand of 2,500-3,000 units Source: Embraer Analysis

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.

Legacy 600®

Embraer Product Portfolio

Very Light

Light

Mid-light

Mid-size

Super Mid-Size

Large

Ultra-Long Range

Ultra-large

Phenom 100®

2008

Lineage 1000®

2008

Phenom 300®

2009

illustrative purposes only

Legacy 600®

Legacy 600® – Floor Plan and Performance

Cabin Volume 1,650 ft3

Cabin Length 49.8 ft

Zone 1 Zone 2 Zone 3Galley

Range* 3,250 nm

MMO Mach 0.80

Max ceiling 41,000 ft

TOFL** 5,551 ft

Baggage

compartment

volume: 240 ft3

*8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternate, 35 min of holding @ 5,000 ft) ** MTOW; ISA; Seal Level

Legacy 600® – Differential Features

LCY Operation (range: 1,800 nm)

HSD – Wifi Sound Quality Improved

EFB Class IICertified for Cannes

Outstanding Hot & High capability

100 aircraft, 19 countries, the right choice

The world discovers the Legacy 600®

March 2007

13%

12%12%10%

2002 2003 2004 2005 2007-2016

27

Deliveries growth of 35% in 2006

1013 13

20

15%

13.6%

December 2006

2006

Market share - super midsize category

Phenom 100®

Phenom 100® - Interior Design


Phenom 100® - Floor Plan and Performance

Preliminary Data - illustrative purposes only

Baggage Compartment - 45 cu.ft

FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft

Range* 1,160 nm

VFR range ** 1,320 nm

MMO Mach 0.70

Max ceiling FL 410

TOFL*** 3,400 ft

* 4 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** 4 occupants @ 200 lb, VFR 45 min reserves *** MTOW, ISA, Sea Level

Clients Testimony

Source: Embraer press-releases

“Combined with their great reputation for quality and durability,the Phenom’s fit our business model extremely well.” said Jim Burns, Magnum Jet’s CEO.

Mr. Jim Burns, CEO

“We are delighted to have Embraer as a key stakeholder in our business given its exemplary track record of innovation in aircraft design and production. ”

Mr. Dómhnal Slattery,Founder and Chairman

“The Phenom 100 is a perfect addition to our fleet ”

Mr. Matt Doyle,VP of Sales


First Phenom 100® Assembly

Fuselage & wing arrival at Main Plant (SJK)


Fuselage & wing junction

28 Mar 2007

First Phenom 100® Assembly


Phenom 300®

by

Phenom 300® - Interior Design


Phenom 300® - Floor Plan and Performance

Baggage Compartment - 66 cu.ft

FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft

Range* 1,800 nm

MMO Mach 0.78

* 6 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** MTOW, ISA, Sea Level

Max ceiling FL 450

TOFL** 3,700 ft


Phenom 300® - Totally New Designed Aircraft

High Availability - Low Turn-Around Time (TAT)

Single Point Refueling

Externally Serviced Lavatory

Brake-by-wire with standard anti-skid


Phenom 300® - Expert Opinion


27 Mar 2007

Phenom 300® - First Metal Cut


More than 350 firm orders in 24 countriesDecember 2006

The world also discovers the Phenom Jets


Lineage 1000®

Lineage 1000® - Interior


Preliminary dataLayout Configuration – flexibility illustrative purposes only

Lineage 1000® - Interior Flexibility

Lineage 1000® - Interior

Produced by

Designed by


Lineage 1000® - Performance

Range* 4,200 nm

MMO Mach 0.82

* 8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternative, 35 min of holding @ 5,000 ft)) ** MTOW, ISA, Sea Level

Max ceiling 45,000 ft

TOFL** 6,660 ft


Customer Support & Services

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

� Maintenance Services � Parts Support & Repairs� Field & Technical Support � Training Program� Embraer Executive Care programs

Integrated Solutions

Service Centers Network - global coverage4 new owned service centers: 3 in US and 1 in Europe; in addition to 3 existing ones

Authorized service centers network expansion to up to 38 locations

Logistics and Parts SupportDistribution Centers with mixed own and third party Logistics

Phenom Jets Partner: UPS

Field and Product SupportMaintenance Tracking and Planning Service unveiling (Flightdocs)

Call Center evolution into a Contact Center concept by middle 2008

Training ProgramsPhenom Jets: Embraer x CAE Joint Venture

Training Centers: 2 in USA and 1 in Europe

Executive Care Programs

Customer Support Solution (NBAA 2006)

Preliminary Data

Service Network for Embraer Executive Jets

Worldwide Network (middle 2008): 45 Service Centers

7 Embraer Wholly Owned

38 Authorized Service Centers

Preliminary Data

Sales Financing Solutions

Sales Financing Solutions

Embraer announced a joint referral program with

Bank of America to finance business jets for

Embraer’s customers.

� Phenom and Legacy jets financing

� expedited credit decisions

� promotional events & materials joint work

Deal with U.S. Bank includes customized

financing for Embraer’s U.S. business jet

customers along with a Multi Service Aviation

Affinity Card.

� Custom financing solutions for Phenom,

Legacy and Lineage buyers

� Multi Service Aviation Affinity Card with

rewards program

Sales and Production Plan

Results and Production Plan

2005 2006 2005 2006 2005 2006

Bookings(US$ billion)

Results - Embraer Executive Jets

Revenues(US$ billion)

0.3

0.6 ~ 0.6

~ 2.0

US GAAP unaudited numbers

Executive Aviation Share of Total

Embraer Revenue(%)

7.3% 15.3%

2007

Legacy 600®

200620052004

25 - 30272013 (units)

Expected Production Plan - Legacy 600®


Expected Production Plan - Jatos Phenom

2009

2008

120 - 150

15 - 20 (units)

(units)

Phenom 100®

Phenom 100®& Phenom 300®


20092008

3 - 4up to 2 (units)

Lineage 1000®

Expected Production Plan - Lineage 1000®


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.

2007 - 7th Annual U.S. Analyst & Investor Meeting Market Orverview Executive Aviation

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