GMS 120-A06

DEFENSE AND GOVERNMENT

MARKET

Farnborough 2006 Investors Meeting

July 19th, 2006

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 2

Light Combat

Transport

Training

ISR

SistemsAnd Services

MARKET NICHESMARKET NICHES

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 3

BUSINESS MODELBUSINESS MODEL

[Revenues around 10%

[ Low level of investmentno capital risk

[Non-recurring investmentsare paid by first clients

[Very positive cash flowprograms

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

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 4

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

SUPER TUCANO

Brazilian Air Force99 aircraft

Deliveries: 41

Colombian Air Force25 aircraft

First export contract5 will be delivered this year

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 5

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

TRANSPORT [ TAME – Equador

Two 170 and one 190 were delivered this year

[ AngolaOne Legacy was contracted

EMBRAER transport aircraft are being used by 10 governments

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 6

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 PROGRAMS

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 7

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

ISRIntelligence Surveillanceand Reconnaissance

[Greece

[Mexico

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 8

EXISTING DEFENSE PROGRAMSEXISTING DEFENSE PROGRAMS

Brazilian Air Force F-5 Modernization Program

[Total Fleet: 46 aircraft

[7 were already delivered to Brazilian Air Force

[ Integration of advancedfire control radar, avionics, new weapons and electronic warfare package

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 9

PROPOSALS SUBMISSION PROPOSALS SUBMISSION

[ 9 multi-mission Legacy India(target towing, aerialphotography, sigint) Decision expected in 2007

[ 18 Super Tucanos SingaporeDecision expected in 2006

[ 36 Super TucanosTurkeyDecision expected in 2007

Total amount ~ US$ 1 billion

GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 10

MARKET COVERAGE MARKET COVERAGE

[Worldwide operations

[ Focus on:

[Latin America

[Asia (IndianSubcontinent and Southeast Asia)

[Some countries in Europe

[USA