Embraer - Empresa Brasileira de Aeronáutica S.A.

Embraer is the fourth ranked aircraft manufacturer in the world, behind Airbus, Boeing, and Bombardier. Embraer jets have carved a niche in the commercial airline market with their regional jet aircraft in the late 1990s and now they plan to do the same in the business jet, private jet, and Air Taxi markets.

According Embraer, (also known as Empresa Brasileira de Aeronáutica S.A.) they are “a leading manufacturer of Commercial jets up to 110 seats with 37 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the commercial aviation, executive aviation, and defense and government segments. Headquartered in São José dos Campos, State of São Paulo, Brazil, Embraer has offices and customer service bases in the United States, France, Portugal, China and Singapore. Embraer is among Brazil’s leading exporting companies. As of September 30, 2006, Embraer had a total workforce of 18,336 people, and its firm order backlog totaled US$ 13.3 billion.

Embraer entered the Very Light and Light Jet segments with the launch of the Phenom series (including the Phenom 100 and Phenom 300) in May 2005 and introduced the Lineage 1000, an ultra-large executive jet based on the Embraer 190 commercial jet platform, in May 2006. Embraer is enhancing its Executive Jets customer support and services offering. The company is adding four wholly-owned service centers and revamping the authorized service center network. By 2008, 45 service centers will support Embraer´s Executive Jets fleet. A joint-venture is being established with the Canadian company CAE to develop training for the Phenom jets. Embraer is also investing heavily in parts inventory and logistics, as well as in the enhancement of its special maintenance programs.

Embraer’s commitment to business jet aviation has produced significant results in 2006. As of today, the Executive Embraer Jets division has added US$ 1.8 billion of new contracts. Firm orders for the recently-launched Phenom 100 and Phenom 300 Very Light and Light Jets stand at over 340. Currently Embraer legacy fleet includes 87 Legacy 600 executive jets operating in 18 countries. Embraer expects to deliver 25 to 30 Legacy 600 jets per year in 2007 and 2008, up from 20 units in 2005 and 13 in 2004. In mid-2008, deliveries of the Phenom 100 will commence, totaling 15-20 units in the second semester. In 2009, when deliveries of the Phenom 300 begin in the second semester, the production rate of the Phenom 100 and Phenom 300 is projected to reach 120-150 units combined. Delivery of up to two Lineage 1000 jets is expected for the second semester of 2008, in its first production year. In 2009, three to four Lineage 1000 jets are planned to be delivered.

Embraer expects to deliver, in 2007, between 160 and 165 Embaer aircraft in the commercial aviation, executive aviation and defense and government (sate-owned airliners and government authority transportation) segments. For 2008, the Company estimates delivery of 195 to 205 Embraer aircraft, including 15 to 20 Phenom 100 Very Light jets with deliveries expected to begin in the second half of the year.