Airline Marketing EMBRAER DAY 2007

Embraer Day 2007 Mauro Kern
Exec. VP Airline Market

Nov
Nov 14th,
14th, 2007
2007
Airline Market & Embraer Programs Overviews

A perspective from the 30 to 120-seat segment
Nov/2007
Contents
Air Transport Industry Review
50-seat Regional Jet Market & the ERJ145 Family
70 to 120-seat Market Evolution & the E-Jets
Embraer Market Forecast
The information contained herein is property of Embraer and shall not be copied or used without Embraers written consent
Strong Air Transport Demand
RPK Average Annual Growth Rates
5.0 3.5% 6.2% -0.4% 9.5% 5.7%
4.5
4.0
3.5
Total RPK (Trillion)
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007F
2008F
Source: ICAO - Contracting States - Scheduled Airlines
Strong Effort to Reduce Costs vs. Fuel Increase
US CASM data
14
Total Cost
12
Total Cost (excl. Fuel)

10
CASM (US/ASM)
4
Labor
2 Fuel
0
00
00
00
00
01
01
01
01
02
02
02
02
03
03
03
03
04
04
04
04
05
05
05
05
06
06
06
06
07
07
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
2Q 2007 Fuel costs = 24% & Labor = 25% of Ops Cost, while 12% & 34% in 2Q2000.
Fuel costs are offsetting labor cost restructuring savings.
Cost Control: Total Cost (Excluding Fuel) has remained flat since 2002.
Source: ATA (Airline Cost Index)

Positive Net Results Projected for 2007 & 2008
North America
-10 -6.7 -2.7 2.7 2.5
World
-5.6 -4.1 -0.5 5.6 7.8
Europe
1.1 1.6 1.8 2.1 3.0
2004 05 06 07F 08F
Middle East
0.2 0.2 0.2 0.2 0.3
2004 05 06 07F 08F

Asia Pacific
2004 05 06 07F 08F
3.4 1.2 0.8 0.7 2.0
Africa
Latin America
-0.3 -0.4 -0.4 -0.1 0.0 2004 05 06 07F 08F
0.1 -0.1 -0.2 -0.1 0.1
2004 05 06 07F 08F
2004 05 06 07F 08F
2004 05 06 07F 08F
Values in US$ Billions

US net results includes restructuring costs and
Source: IATA Economics Sep/07 (ICAO data to 2006 and IATA Forecast 2007-2008) excludes United Airlines fresh-start accounting losses and gains
WW Fleet Profile - 18,914 aircraft
Scheduled Airlines, All Passenger Configuration and Active in Service
Age (years)
> 30
4,000
3,563 26-30
3,531
3,500
21-25
Number of Aircraft (Units)
3,000 16-20
2,500 11-15
2,057 6-10
2,000
1,751 0-5
1,630
1,500 1,421
1,088 1,040
1,000 941 921
462 509
500
0
TP < 30
TP 30-60
TP 61-90
Jet 30-60
Jet 61-90
Jet 91-120
Jet 121-145
Jet 146-175
Jet 176-210
Jet 211-300
Jet 301-400
Jet >400
Source: BACK (Sep/07)
Environment: becoming a Critical Issue
Increasingly negative public but

image >> a pollution symbol
Aviation is currently responsible for
2.9% of all CO2 emissions, and expected
to increase to 3.3% by 2050*.
Current main focus from NGOs,
media, and politicians
2006 2050
2.90% 3.30%
The main driver for next

generation engines and aircraft
Industry working to present real 97.10% 96.70%
All Other Sources All Other Sources

facts, based on technical and
Aviation Aviation
economic arguments
*IPCC Report Aviation and the Global Atmosphere (1999; scenario FE1); IPCC Report on Emissions Scenarios (2000; Scenario A1F1) and BACK (2006)
Air Transport Industry Main Drivers
Driver Consequence
New Passenger Profile Different Set of Values (pricing, comfort,

more frequencies and direct services)
Increased Competition Pressure for Differentiated Services
Weak Revenue Environment Requires Continuous Cost Reductions,
Improved Productivity and Efficiency
Regulatory: Liberalization Opportunities for New Entrants
Regulatory: Environment Increased Costs may reduce demand
Old Fleet Additional Costs: Fuel & Maintenance
Fuel Prices Increased Costs may reduce demand

Demand vs. Capacity Need of a Better Match of Market
Demand and Aircraft Capacity
ERJ 145 Family
ERJ 145 Family Order Book
(September 30th., 2007) Firm Firm

Options Deliveries Backlog
Orders
ERJ 135 108 - 108 -
ERJ 140 74 - 74 -
ERJ 145 733 131 682 51
Total 915 131 864 51
1,000 ERJ145 Platforms Already Delivered
Dec
Dec 1996
1996
First
First Delivery
Delivery
Dec
Dec 1998
1998
Dec
Dec 1999
1999
Aug
Aug 2000
2000
September, 2007
Mar
Mar 2001
2001 Sep
Sep 2001
2001 May
May 2002
2002 May
May 2003
2003 May
May 2004
2004 Feb
Feb 2005
2005
Market Share - World (30-60 seats)
100
Embraer: ERJ 145/140/135
93
Bombardier: CRJ100/200/440
90
83
80
68
70
60 55 54
56 55 52 53 53 53
52 52
(%)
50
45
48 48
45 48 47 45 47 47
46
40
32
30
17
20
7
10
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07
RJ50s Current Situation
Worldwide FIS (Sep/07): 2057 aircraft
66% in the US; 13% in Europe; 9% in the CIS and 12% in ROW
Parked aircraft (in storage): 22 CRJs; 2 ERJs; 17 others
only 2% of the total fleet a stable market
RJ50s: responsible for nearly 30% of US domestic departures
Chinas regional airline industry starts to develop; FIS = 73 RJ50s
Secondary market being developed: Mexico, Eastern Europe and

Africa
Source: BACK (Sep/07; FIS=Scheduled airlines and A/C active in service)

China: New Opportunities for Regional Airlines
Grand China Express (Hainan)
Will operated 50 145s+ 50 E190s.

Started operation with 328s, which will be gradually
phased out along the introduction of ERJ145
Kunpeng (Shenzhen & Mesa JV)
Started operation in September 2007 with used RJ50s

leased from Mesa
Looking for a fleet of 160-200 aircraft including 50 and
100 seaters
China Express
Started operation in September 2006 with used RJ50s
leased from Shandong airlines that also provides pilots.
Plan a fleet of 50-100 aircraft in the long term.
RJ50 Market Opportunities Russia/CIS
Old fleet replacement is needed in the short term: 524 aircraft affected
200
Number of Aircraft
150 50 seats 30 seats

Avg. Age Avg. Age 76 seats
35 years 32 years Avg. Age
29 years
100 187 188
An-24 Yak-40 149
50 Tu-134
0
Source: BACK (Mar/07)
Turboprop Jet 30-60 Jet 61-90
Replacement already started: Dniproavia / ERJ145; Soyuz / EMB120
ERJ135 / ERJ140 Higher Density Studies
ERJ 135 = 37 seats ERJ 135HD = 41 seats
ERJ 140 = 44 seats ERJ 140HD = 48 seats
Removal of aft lavatory and Installation of a

new lavatory at aircraft fwd.
Add one four abreast row where lavatory was
originally installed.
ERJ 145 Family Shedule Reliability Status
ERJ145 - SCHEDULE RELIABILITY AND COMPLETION RATE
100.00
99.50
99.00
SR & CR (%)
98.50
98.00
97.50
97.00
FEB
DEC
FEB
DEC
FEB
DEC
MAY
SEP
MAY
SEP
MAY
SEP
JAN
MAR
APR
JUN
JAN
MAR
APR
JUN
JAN
MAR
APR
JUN
AUG
AUG
AUG
JUL
OCT
JUL
OCT
JUL
OCT
NOV
NOV
NOV
2005 2006 2007
SR CR
Residual Value Evolution (RJ50s)
RV@ 12 years
10,00
9,00
8,00
7,00
6,00
US$ Millions
5,00
4,00
3,00
2,00
ERJ-145
1,00 CRJ-200
0,00
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
4
Q
Q
02
03
03
03
03
04
04
04
04
05
05
05
05
06
06
06
06
07
07
07
07
20
Source: average of 12 representative industry Appraisers

RJ 50s Future Market Trends
Market entered a mature phase in the US and Europe
RJ50s will remain the backbone of US hub feeding system
Some new market opportunities (long and thin) in the US and EU
Potential for regional aviation development in China and Russia
Secondary market will keep expanding
E-Jets Family
Helping airlines
to improve efficiency
E-Jets Family
EMBRAER 170/175
EMBRAER 170
70 to 80 Seats
2,100 nm Range
Certification February 2004
EMBRAER 175
78 to 88 Seats
2,000 nm Range
Certification December 2004
EMBRAER 190/195
EMBRAER 190
98 to 114 Seats
2,400 nm Range
Certification August 2005
EMBRAER 195
108 to 122 Seats
2,200 nm Range
Certification June 2006
E-Jets Family - Main Applications
Natural evolution for existing 50-seat markets
Right-sizing of low load-factor narrow-body flights

Capacity, range & seamless service
Enhancing services by increasing frequencies
New market opportunities low risk development

Medium density and long/thin markets
Replacement of old & inefficient jets
US Regionals: Trend towards high capacity aircraft
Capacity Share by Segment - Jets
30-60 61-90
100%
80%
ASM Offered
60%
40%
20%
0%
00
07
00
07
00
07
00
07
00
07
00
07
20
20
20
20
20
20
20
20
20
20
20
20
Source: BACK
World Market Opportunities Replacement
World Fleet Age Profile (61-120 seats): 2,454 jets / 15 years average age
800 Avg.
Region # Acft.
30% of 61-120 fleet Age
700
(735 acft) with more North America 846 10
600 Latin America 285 23
Number of Aircraft
than 20 years
500 Europe 617 11
Russia & CIS 231 23
400
Africa 148 22
300
Middle East 48 16
200 Asia Pacific 241 19
100 China 38 8
World 2,454 15
0
0-5 6-10 11-15 16-20 21-25 26-30 31-35 >35
Age (Years)
735 aircraft will be eligible for replacement in the coming years;

retirement may be antecipated due to fuel costs
Source: BACK (Oct/06)
Comparison: Fuel / CO2 Emissions
The E-Jets Family offers substantial fleet renewal benefits with fuel /
emission reductions up to 50%.
CO2 Emissions*: 61 to 90-seat segment

160%
140%
120% +53%
100%
80%
60%
40%
20%
0%
E170 E175 BAe 146- BAe 146- F70 RJ85 DC9-10
100 200
*500 nm sector, 100% Load Factor.

Comparison: Fuel / CO2 Emissions
The E-Jets Family offers substantial fleet renewal benefits with fuel /
emission reductions up to 50%.
160%
CO2 Emissions*: 91 to 120-seat segment
140%
+50%
120%
100%
80%
60%
40%
20%
0%
E190 E195 B717 B737- B737- B737- F100 MD87 RJ100 DC9-30
200 300 500
*500 nm sector, 100% Load Factor.

Short Term Fleet Renewal Benefits
E-Jets can bring immediate fuel / emissions savings of up to 50%
E-Jets Joint Certification means Flexibility
Same Type Design for ANAC, FAA and EASA
FAA EASA
ANAC FAA EASA
EMBRAER 170 February 2004 February 2004
EMBRAER 175 December 2004 August 2006 January 2005
EMBRAER 190 August 2005 September, 2005 June 2006
EMBRAER 195 June 2006 July 2007 July 2006
Market swap flexibility

Increased residual value
E-Jets Commonality
Training 70% of the potential Spare Parts 30% of the potential

benefits benefits
same cockpit, common systems and fly-by- E170
wire technology mean maximum training 100%
commonality within the family
E175
EMBRAER 170 175 190 195
86%
170 ------- A/A/A A/A/A A/A/A
175 A/A/A ------- A/A/A A/A/A E190

190 A/A/A A/A/A ------- A/A/A 100%
195 A/A/A A/A/A A/A/A ------- E195
Training Qualification Differences : According to FAA AC 120- 53, grades Based on the aircraft RSPL (Recommended Spare Parts List)
range from A (best) to E (worst) in 3 categories: Training Differences, Check Note: Airframe and Ground Servicing Equipment only (Engines are not included).
Differences and Recurrent Training
E-Jets have the maximum training commonality (A/A/A)

E-Jets offer an outstanding parts commonality (86% to 100%)
The Comfort Factor
E-Jets: Narrowbody airplane comfort in more convenient sizes
CRJ700/900 EMBRAER 170/190 A318/320

17.3 18.25 18.0
16 19.75 19
E170/190 advantages:
0.95 (2.4cm) wider seats Widest seats 0.25 (0.6 cm) wider seats
3.75 (9.5cm) wider aisle (+23%) Widest aisles 0.75 (1.9 cm) wider aisle
16% more volume per seat No middle seats Equal volume per seat
Passengers love this aircraft for its spacious interior design and in particular the
absence of a middle seat. Bryan Bedford, CEO Republic Airways (Jul/06)
The comfort of the E175 aircraft is important to our customers and the
economics of the aircraft make good business sense. Scott Kirby, US Airways EVP Sales
and Marketing (Jul/06)
The Trip Cost Factor
E-Jets: Lower trip costs than comparable airplane sizes
8000 7563
- 20%
- 32%
7000
6310
6058
6000 US Domestic
5368
5135
Network Airline -
US$ per Trip
5000
800 sm trip
4000
3000 Airplane Variable

plus Ownership
2000 Costs per Trip
1000
0
E170 E175 E190 E195 A319 /
B737-700
2-class seating: 70 78 94 104 124
Costs exclude: revenue related costs and system (overhead) costs
Costs include: variable: fuel, crew, maintenance, landing fees, handling fees ; ownership: lease cost, hull insurance, spares inventory costs
Air Canada Merrill Lynch Global Transportation Conference (Jun/2007)
Domestic
International
OPY
C
E-Jets Family Order Book
(September 30th., 2007) Firm Firm

Options Deliveries
Orders Backlog
EMBRAER 170 163 123 137 26
EMBRAER 175 106 136 46 60
EMBRAER 190 391 432 99 292
EMBRAER 195 52 65 10 42
Total 712 756 292 420
Embraer: 170/175/190/195
Bombardier: CRJ700/900/1000
100 100 Airbus: A318
100 Boeing: B737-600
99 AVIC I: ARJ-21
90
Sukhoi: Superjet 100
Antonov: An-148
80
70
60 60
(%)
50 46 46
44 44 44
42
40 40 38 39
36
33 32 34
30 38
30 29
25
23
28 22 21
20 17
21 16
12
17 16 16 9
10 11 79 6 5
8 5 4 5
2 2 2 2 2
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07
E-Jets Customer Base Evolution
Customers/
Operators 1 2 3 4 9 14 19 29 40
800
712
700
619
600
Accumulated Firm Orders
500 440
400 343
300 245
200
110 112 118
100
60
0
1999 2000 2001 2002 2003 2004 2005 2006 Sep/2007
Deliveries
Source: Embraer
E-Jets Worldwide Distribution
Customers Firm Orders

Asia Pacific /
China
19% Middle East / 14%

19% Africa 5%
Europe 53%
19% 17% 18%
26% Latin America 10%
North America
Growing and diversified customer-base across five continents.

Increased presence in emerging markets with established carriers.
Source: Embraer (Sep/07)
E-Jets Delivery Pace Evolution
1st Delivery -
Mar/2004 100th: Oct/2005 200th: Dec/2006 300th: Oct/2007
350
300
Accumulated Deliveries (units)
250
200
150
100
50
0
04
04
04
04
05
05
05
05
06
06
06
06
07
07
07
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
E-Jets Deployment in North America
Sep/07 Deliveries Backlog

15 E175
11 E190
34 E190
29 E190 72 E190
4 E175 32 E175
8 E190 49 E190
13 E175
16 E170
4 E170
Natural Growth Right-sizing New Routes 28 E170
40% 42% 18% 28 E170

13 E175
17 E175
0% 20% 40% 60% 80% 100%
E-Jets 183 190
Source: BACK (4Q06), Embraer
E-Jets Deployment in domestic long haul
Airline Longest Route
E190 New York-Calgary

1,768 nm ; 5:20 (2 Daily)
E170 New York Austin

1,316 nm ; 4:10 (1 Daily)
E170 Denver Dayton

942 nm ; 2:47 (1 Daily)
E190 Boston Austin

1,470 nm ; 4:10 (1 Daily)
E170 Edmonton Chicago

1,231 nm; 3:10 (1 Daily)
E175 Philadelphia Houston

1,150 nm ; 3:30 (2 Daily)
Efficiency and flexibility also for long haul domestic/transborder markets

Source: BACK (Jul/07)
E-Jets Deployment in Europe

6 E170
10 E195
2 E170
10 E170
6 E190
4 E190
5 E190
6 E195 8 E195
10 E190
10 E170
6 E175
30 E190
41% 53% 3% 6 E170

4 E190
6 E190
0% 20% 40% 60% 80% 100%
E-Jets 48 83
E-Jets Deployment in Middle East & Africa
15 E170
2 E175
4 E195
1 E195
6 E170
2 E170 1 E170
2 E170
1 E170
Natural Growth Right-sizing New Routes

E-Jets 28 6
5% 86% 9%
0% 20% 40% 60% 80% 100%
Source: BACK (Jan/07), Embraer

E-Jets Deployment in Asia Pacific & China
50 E190
5 E170
1 E170
14 E190
2 E190 5 E190
2 E170
3 E175
1 E170
1 E170
10 E170
E-Jets 10 84
Source: Embraer
E-Jets Deployment in Latin America
4 E190
8 E190
1 E175 1 E190
20 E195
10 E190 5 E190
2 E170
2 E170
2 E190
27% 58% 15% E-Jets 24 32

0% 20% 40% 60% 80% 100%

E-Jets more than 1,000,000 Flight Hours
E170/175 E190/195
Operators 18 Operators 11
Aircraft in Service 181 Aircraft in Service 109
Flight Hours 861,698 Flight Hours 238,362
Flight Cycles 608,493 Flight Cycles 149,492
Fleet Leader Fleet Leader

Flight Hours (Republic S/N 0016) 9,430 Flight Hours (Air Canada S/N 0013) 4,974
Flight Cycles (Republic S/N 0016) 6,618 Flight Cycles (JetBlue S/N 008) 3,402
E170/190 Family
Operators* 26
Aircraft in Service 290
Flight Hours 1,100,060
Flight Cycles 757,985
Source: Airlines (as of Sep 30th, 2007) (*) Air Canada, Finnair and TAME operate aircraft of both subfamilies
E-Jets Continuous Product Evolution
2006 2007 2008 2009
HUD Repeater
+
LVTO 170
ETOPS 190 (75)

Steep Approach 170

New Higher Thrust
Engine Version
CF34-10E7
CAT III A Autoland 175
CAT III HGS 190

CAT III HGS 195
(E-190
(E-190 flightcrew)
flightcrew) will
will be
be able
able to
to fly
fly
CAT III B 170

CAT III A Autoland190
every
every approach
weather
the
approach the
weather and
the right
or
and in
right seat,
or on
seat, to
the same
in bad,
same way,
bad, from
way, in
from the
the left
to ILS-equipped
on non-precision
in good
good
left seat
seat or
ILS-equipped runways
non-precision approaches
approaches
runways
or

EFB
Usto
Usto Schutz, JetBlues VP
Schutz, JetBlues
E170/190
VP (E190
(E190 Program)
Program)
E-Jets Continuous Product Evolution
2006 2007 2008 2009
ETOPS 190 (120)

E175 AR
E170 AR CAT IIIA Autoland 195
Steep Approach 190
creating value to customers.
E170/175 Schedule Reliability Status
E190/195 Schedule Reliability Status
Residual Value Evolution (100 seaters)
RV@ 12 years
16,00
15,00
14,00
13,00
12,00
11,00
10,00
US$ Millions
9,00
8,00
7,00
6,00
5,00
Embraer 190
4,00
Embraer 195
3,00
B737-600
2,00
A318
1,00
0,00
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
20 4
20 1
20 2
20 3
4
Q
Q
02
03
03
03
03
04
04
04
04
05
05
05
05
06
06
06
06
07
07
07
07
20
Source: average of 12 representative industry Appraisers

70 to 120-seat Future Market Trends
Traffic growth on high load factor RJ50 routes

REGIONAL
Capacity increase on RJ50 routes at peak hours
Mainline service level on regional routes

NETWORK
Right-sizing of low load factor narrow-body flights
Replacement of old and inefficient jets

LOW COST
Expansion into medium density markets
Embraers main actions towards a cleaner environment
Embraer was the first aircraft manufacturer to

obtain ISO 14001 certification in March 2002.
Embraer is the first aircraft manufacturer to

produce a 100% biofuel powered aircraft (Ipanema).
Embraer is improving efficiency of its current

aircraft portfolio and investing in the development
and implementation of new technologies.
Replacement of old jets can produce emissions

reduction of up to 50% in the short term.
Embraer is putting big efforts in cleaning its

production processes.
Embraer is fully committed to develop new

products that will help the aviation industry to
reduce its environmental impact.
NEW Market Forecast (2008-2027)
Projected Traffic and Economic Growth
Growth by Region (2008-2027)
China
Middle East
Latin America
Africa RPK
CIS GDP
Asia Pacific
Europe
North America
World
0% 1% 2% 3% 4% 5% 6% 7% 8%
Average Annual Growth (%)
Projected world GDP growth around 3% in the next twenty years

sustaining nearly 5% annual increase in air transport demand
Source: Global Insight and Embraer (Oct/06)
Embraer Market Forecast (2008-2027)
Jet Deliveries by Capacity Segment
Segment 2008 - 2017 2018 - 2027 2008 - 2027
30 - 60 275 825 1,100

61 - 90 1,075 1,525 2,600
91 - 120 1,800 1,950 3,750
TOTAL 3,150 4,300 7,450
30-60: Mature market, low 50-seat demand in the short/mid term.

61-90: 75-seater as a natural growth of RJ50s.
91-120: Right-sizing of narrowbody operations, replacement of old &
inefficient jets and airline expansion into mid-density markets.
Embraer Market Forecast (2008-2027)
Projected Deliveries (30-120 seats): 7,450 Jets
CIS
North 510
America Europe 7%
3,330 1,350
45% 18% China
Middle 730
East 10%
Africa 190
Latin
America
220 2%
3% Asia
580 Pacific
8%
540
7%
Embraer: ERJ 145/140/135 ; Embraer 170/175/190/195
80 Bombardier: CRJ100/200/440/700/900/1000
Airbus: A318
Boeing: B737-600
AVIC I: ARJ-21
70
Sukhoi: Superjet 100
Antonov: An-148
60 59
51 52 51
52 50 50 50
50 48 47 47
47 44 45 45 45
42 42
44 44 44
(%)
40 38
38
37 34
30
24
20 23
14
10 11 8
8
5 4 3 3
5 8 33 2 2 2
4 2 2
0 4 4 3 2 1 1 1 1
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Oct/07
E-Jets Around the World
Thank you

Airline Marketing EMBRAER DAY 2007

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Airline Marketing EMBRAER DAY 2007

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Embraer Day 2007 Mauro Kern

Exec. VP Airline Market

Airline Market & Embraer Programs Overviews

Air Transport Industry Review

50-seat Regional Jet Market & the ERJ145 Family

70 to 120-seat Market Evolution & the E-Jets

Embraer Market Forecast

RPK Average Annual Growth Rates

5.0 3.5% 6.2% -0.4% 9.5% 5.7%

Total Cost (excl. Fuel)

Source: ATA (Airline Cost Index)

2004 05 06 07F 08F

2004 05 06 07F 08F

2004 05 06 07F 08F

Values in US$ Billions

Increasingly negative public but

The main driver for next

Industry working to present real 97.10% 96.70%

All Other Sources All Other Sources

New Passenger Profile Different Set of Values (pricing, comfort,

Old Fleet Additional Costs: Fuel & Maintenance

Fuel Prices Increased Costs may reduce demand

(September 30th., 2007) Firm Firm

ERJ 135 108 - 108 -

ERJ 145 733 131 682 51

Total 915 131 864 51

Worldwide FIS (Sep/07): 2057 aircraft

Parked aircraft (in storage): 22 CRJs; 2 ERJs; 17 others

only 2% of the total fleet a stable market

RJ50s: responsible for nearly 30% of US domestic departures

Chinas regional airline industry starts to develop; FIS = 73 RJ50s

Secondary market being developed: Mexico, Eastern Europe and

Source: BACK (Sep/07; FIS=Scheduled airlines and A/C active in service)

Grand China Express (Hainan)

Will operated 50 145s+ 50 E190s.

Kunpeng (Shenzhen & Mesa JV)

Started operation in September 2007 with used RJ50s

150 50 seats 30 seats

ERJ 135 = 37 seats ERJ 135HD = 41 seats

ERJ 140 = 44 seats ERJ 140HD = 48 seats

Removal of aft lavatory and Installation of a

ERJ145 - SCHEDULE RELIABILITY AND COMPLETION RATE

Source: average of 12 representative industry Appraisers

Market entered a mature phase in the US and Europe

RJ50s will remain the backbone of US hub feeding system

Some new market opportunities (long and thin) in the US and EU

Potential for regional aviation development in China and Russia

Secondary market will keep expanding

Natural evolution for existing 50-seat markets

Right-sizing of low load-factor narrow-body flights

New market opportunities low risk development

Replacement of old & inefficient jets

200 Asia Pacific 241 19

735 aircraft will be eligible for replacement in the coming years;

CO2 Emissions*: 61 to 90-seat segment

*500 nm sector, 100% Load Factor.

*500 nm sector, 100% Load Factor.

E-Jets can bring immediate fuel / emissions savings of up to 50%

ANAC FAA EASA

EMBRAER 170 February 2004 February 2004

EMBRAER 175 December 2004 August 2006 January 2005

EMBRAER 190 August 2005 September, 2005 June 2006

EMBRAER 195 June 2006 July 2007 July 2006

Market swap flexibility