Embraer presented an analysis of key trends in the global airline market and their competitive positioning in the regional jet market. Some of the main trends discussed include traffic recovery led by low cost carriers, a shift in market share towards LCCs and regionals, and the need for fleet right-sizing. Embraer highlighted their strong market position in the 30-120 seat segment and examples of how regional jets are enabling the expansion and development of new routes globally.

1. Airline Market Outlook
Embraer’s Positioning in the 30 to 120 Seat Segment
6th Annual Analyst & Investor Meeting Frederico Fleury Curado
November 18th, 2005 Executive Vice-President, Airline Market
São Jose dos Campos SP, Brazil

2. Contents
Key Global Market Trends
Competitive Environment
Regional Jets Sustained Operation
Embraer Market Forecast

3. 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.

4. Key Global Market Trends
• Traffic Recovery
Intra-Europe (RPK Billion) U.S. Domestic (RPM Billion)
300
600
250
500
200 400
150 300
100 200
50 100
0 0
2000 2001 2002 2003 2004 2005F 2000 2001 2002 2003 2004 2005F
Network Low Cost Regional Network Low Cost Regional
Source: Airlines, Embraer
• Disconnection from
Forecast Ground Rules
• Historically > 0.90% of GDP, Passenger Revenue
is below 0.70%.
• RPM is becoming a more complex function of GDP
Source: US Bureau of Economics Analysis and DOT Form 41
and Yield.

5. Key Global Market Trends
• LCC Expansion
• Around 70% of all domestic passengers
in North America and Europe have
access to low cost carriers services.
• LCCs hold air fare pricing power.
• Passengers are more stringent on air
travel value proposition.
US Domestic (% RPK) Intra-Europe
100% 3% 5% 9% 8%
12% 16% 15%
12% 17%
5%
• Shift in Market Share 80%
19%
11%
27% 19%
37% 35%
60%
• US: LCCs and Regionals expanding.
85% 87%
40% 76%
• Intra-Europe: LCCs expanding and 64%
72%
65%
51% 50%
Regionals concentrating on secondary/ 20%
Source:
Airlines,
Embraer
/business markets development. 0%
1995 2000 2005E 2010E 1995 2000 2005E 2010E
Network Low Cost Regional

6. Key Global Market Trends
• Domestic U.S. Pax Yields
Down Sharply from 2000
• No evidences or expectation of a sizable
recuperation.
• Passenger unit revenue trends weak
domestically but strong internationally
• Crude Oil and Jet Fuel Prices
70 200
Source: EIA 180
Crude Oil (US$/Barrel)
Jet Fuel (US¢/Gallon)
• Several factors (cold weather, wars, higher 60 160
140
import rates, increased China demand and 50
120
refinery capacity) led to higher prices. 40 100
80
• Projected oil prices: an upward shift from 30 60
40
historical levels to around US$50-60 long 20
20
term. Jet fuel prices expected to be around 10 0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
US¢150-170.

7. Key Global Market Trends
25
• Fleet Right-Sizing 60%
20 of flights
• 60% of all US domestic flights depart with load
factor more appropriate to 70-110 seat aircraft. 15
%
• 95% of all North American narrow-body flights are 10
within 1,700nm range. 5
• 85% of city pairs exclusively served by narrow body 4 8 13 15 20 13 8 7 5 2 2
0
jets have less than two daily frequencies. 50 60 70 80 90 100 110 120 130 140 >150
Source: US DOT/Embraer Passengers per Departure
• Replacement Crisis – Ageing Fleets (61 to 120 seats) 810
Aircraft older
• 35% of total fleet is more than 20 years in service and 492
than 20 Years
451 35% of total fleet in service
shall start to be replaced in the coming years. 361
320
• Old technology equipments, most of them no longer in 233
212
237
production.
• Inefficient and expensive aircraft to operate.
0-5 6-10 11-15 16-20 21-25 26-30 30
Aircraft Age (Years)
Source: BACK/Fleet PC (Jan/05)

8. Not Another Cycle, but a Fundamental Change
New Passenger Profile Different Set of Values
Ultra Competitive Environment
Strong Focus on Cost Reduction, Reduced Investments
Cash is King
Maximum Utilization of Assets (fleet optimization and flexibility)
Clash of 3 models (LCC x Network x Regional)
It´s about cost and efficiency
CRJ700
ERJ135
ERJ140
ERJ145
MD80
MD83
B777
B757
B767
A300
B737
70 to
ERJ135
ERJ145
MD11
MD82
B737
B777
B737
B737
B757
B757
B767
B737
It´s about value proposition 110 Seats
CRJ700
CRJ200
ERJ135
ERJ145
CRJ700
B777
B737
A319
B747
E-170
A320
B767
B737
B757
B767
Fast Scope Clauses Relaxation /
CRJ200
CRJ700
ERJ145
A330
B737
A319
A320
B757
A321
B767
B737
E-170
CRJ200
ERJ145
CRJ700
ERJ135
MD88
MD90
B777
B737
B767
B767
A340
B737
B757
B737
/ Closing the 70-110 Seat Gap
CRJ440
DC-10
AVRO
B747
A330
DC-9
A319
DC-9
A330
A320
B757
B757
(Bottom-Up and Top-Down) 25 50 75 100 125 150 175+
Seat Capacity

9. Competitive
Environment

10. 30-60 Seat Jet Competitors
ERJ 135
ERJ 135
CRJ200 // 440
CRJ200 440
ERJ 140
ERJ 140
328JET
328JET
ERJ 145 and 145XR
ERJ 145 and 145XR

11. Market Share (30-60 seat segment)
100
93
90
83
80
Accumulated Market Share (%)
70
68
60 52 53 55 54.4
55 52
56 52
50
45
48 48
45 48 47 45
40 45.6
32
30
17
20
7
10
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005
Source: Embraer

12. 61-90 Seat Segment Competitors
RRJ
RRJ
EMBRAER 170
EMBRAER 170
CRJ700
CRJ700
CRJ900
CRJ900
EMBRAER 175
EMBRAER 175
ARJ21
ARJ21

13. Market Share (61-90 seat segment)
100
100 100
77 73
80
Accumulated Market Share (%)
70 72
67
64
60 57.9
40 36 36.2
30 33
28
27
23
20
2.5
0 0 3.4
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005
Source: Embraer

14. 91-120 Seat Segment Competitors
B717
B717
B737-600
B737-600
EMBRAER 190
EMBRAER 190
A318
A318
ARJ21
ARJ21
RRJ
RRJ EMBRAER 195
EMBRAER 195

15. Market Share (91-120 seat segment)
100 100 100 100
90
80
Accumulated Market Share (%)
70
60 58.5
56 56
45 49
50 45
42
40 42
44
38
30 33 29
24
26 21.3
20 16
20.2
13 20
11 11
10
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005
Source: Embraer

16. Embraer Commercial Jets Unique Position
30Y 50Y 70Y 90Y 110Y 130Y
Potential
New Entrants
Scope

17. Regional Jets
Sustained
Operation
(30-60 seat segment)

18. ERJ 145 Family
37 Seats
44 Seats
50 Seats
50 Seats
(2,000 nm range)

19. ERJ 145 Family Network - USA
New Routes
Jet Complement
Jet Replacement
RJ Complement
RJ Replacement
TP Complement
TP Replacement
100%
28%
75%
18%
50%
22%
3%
25% 5%
6%
Average Stage Length = 460 miles 18%
Source: BACK/OAG (Jan/05) 0%
1371 routes

20. ERJ 145 Family Network
< 1 hour
1 – 2 hours
2 – 3 hours
> 3 hours
Number of Routes
Jan/2000 Jan/2005
< 1 hour 41 (14%) 179 (15%)
1 - 2 hours 157 (55%) 639 (51%)
2 - 3 hours 87 (31%) 380 (30%)
> 3 hours 0 48 (4%)
Source: BACK/OAG (Jan/05)

21. US Regional System Network
% routes in each major US RJs operator network without direct competition
50%
44%
40%
35%
30% 27%
21%
20%
15% 15%
10%
0%
AA CO DL NW UA US
• High percentage of RJ service is on monopoly routes
• 75% of all RJs monopoly routes are operated with less than 2 daily frequencies
Source: BACK/OAG (Jan/05 ; combined city effect not considered)

22. US Domestic Market (Year 2004)
2,500 Connecting Flight (Greater than
90% of total PPDEWs in
50-seat RJ Connecting Flight)
2,000 Market
Direct & Connecting Flight
Number of Markets
Opportunities:
1949
1,500
connecting Direct Flight (Less than 10% of
markets total PPDEWs in Connecting
Flight)
1,000
500
0
25 - 75 75 - 150 150 - 315 315 - 500 >500
Passenger Per Day Each Way (PPDEW)
Source: US DOT OD1A (Back Aviation)

23. ERJ 145 Family Network - Europe
New Routes
Jet Complement
Jet Replacement
TP Complement
TP Replacement
100%
31%
75%
17%
50%
18%
13%
25%
21%
Average Stage Length = 430 miles 0%
Source: BACK/OAG(Jan/05) 424 routes

24. New Routes Development - London City
• ERJ 135: Steep Approach Capable (London City Airport)
• Still Air Range: 600 nm
ERJ 135
- Typical European airline OEW
- Full PAX
Passengers at 90.7 kg (200 lb)
- Cruise at LRC
- Airport Temp. at 20.5ºC / ISA+5.5ºC
(85% Summer)
- 85% Summer Winds
- JAR OPS Reserves
100 nm alternate

25. New Routes Development - China
China Eastern
5 ERJ 145
Chengdu
Sichuan Airlines China Southern
5 ERJ 145 Guangzhou 6 ERJ 145
Source: BACK/OAG(1Q05)

26. ERJ 145 - AeroLitoral - Mexico
New Routes
CJS
CJS
TIJ
TIJ
Jet Replacement
TP Complement
HMO
HMO CUU
CUU TP Replacement
CEN
CEN
LMM
LMM MTY
MTY
100%
CUL
CUL
17%
75% 17%
BJX
BJX
GDL
GDL
MEX
MEX
50%
41%
• The ERJ 145, on average, attracts 10 more pax
per flight on every route it replaces the Saab. 25%
• Since the incorporation of the ERJ 145s, AeroMexico’s 25%
market share, on disputed routes, has increased by 9 p.p.
0%
Source: BACK/OAG(Jan/05)

27. ERJ 145 Family Worldwide Fleet SR and CR
Schedule Reliability & Completion Rate
12 Months Moving Average
REF.
CR=99.7% (completion)
Aug/2005
SR=98.8% (15 min. delay)

28. ERJ 145 Family Orderbook
(as of September 30th., 2005) Firm
Firm Orders Options Total Deliveries Backlog
ERJ 135 123 2 125 108 15
ERJ 140 94 20 114 74 20
ERJ 145 677 206 883 661 16
Total 894 228 1,122 843 51

29. The 30-60 Seat Jet Segment Summary
• Market has reached maturity (established customer base)
• The lowest trip cost: increased frequencies (market presence) and
reduced risks to new markets development (long and thin routes with
monopoly services – better pricing power)
• Secondary market starting to develop
• Less than 10 ERJs temporarily parked
• Will remain the backbone of US Regional fleet (small density
markets)

30. The E-Jets Family
Program Status
Economics Ergonomics Engineering Efficiency

31. EMBRAER 170 Certified by CTA/FAA/EASA
CTA
FAA EASA

32. EMBRAER 170/175 Canadian Certification
•Canadian Certification Granted on July 15th, 2005.
Florida, July 2005, -35 °C
McKinley Climatic Lab, Eglin Air Force Base
Additional Cold Soak tests performed for the
Canadian authorities
PR 22/Jul/05

33. EMBRAER 190 – Certified by CTA and FAA
CTA TC on August 30th, 2005. FAA TC on September 2nd, 2005.
PR 01/Sep/05

34. EMBRAER 195 – Development & Certification Schedule
2000 2001 2002 2003 2004 2005 2006
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Initial Definitions Phase
Joint Definition Phase
Detail Design and Manufacturing
First Flight
Certification Tests
Type Certification
1st Delivery
1ST Flight – Dec’07th 2004
PR 10/May/05

35. E-Jets Operators
ITALY France SWITZERLAND UK FINLAND GERMANY POLAND
●Alitalia ●Régional ●Swiss ●Flybe ●Finnair ●Cirrus ●LOT
CANADA
●Air Canada
USA
●US Airways
●Republic
Delta China
United ●Hong Kong
●JetBlue Express
India
PANAMA ●Paramount
●Copa
ECUADOR
●Tame
Saudi Arabia
● Current Operators ● Near Future operators ●Saudi Arabian Airlines
(as of Oct 24th, 2005)

36. Embraer 170 Network at
% of Routes (3Q05)
New Route
Rightsizing
Natural Growth
100%
8%
75%
41%
50%
25% 51%
Source: BACK/OAG (3Q05 routes)
Average Stage Length = 635 sm (552 nm) 0%

37. Embraer 170 Network at
% of Routes (3Q05)
New Route
Rightsizing
Natural Growth
100% 3%
75% 43%
50%
25% 54%
Average Stage Length = 640 sm (556 nm) 0%
Source: BACK/OAG (3Q05 routes)

38. Embraer 170 Network at
% of Routes (3Q05)
New Route
Rightsizing
Natural Growth
100%
12%
75% 29%
50%
59%
25%
Average Stage Length = 429 sm (373 nm) 0%
Source: BACK/OAG (3Q05 routes)

39. Embraer 175 Network
% of Routes (4Q05)
New Route
Rightsizing
Natural Growth
100%
75% 50%
50%
25% 50%
Average Stage Length = 410 sm (357 nm) 0%
Source: BACK/OAG (4Q05 routes)

40. Embraer 170 Network
% of Routes (3Q05)
New Route
Rightsizing
Natural Growth
100% 2%
37%
75%
50%
61%
25%
Average Stage Length = 609 sm (529 nm)
Source: BACK/OAG (3Q05 routes) 0%

41. EMBRAER 190 Initial Network
New Route 100%
From Panama City San Pedro Sulas
To San Salvador San Jose 22%
Equipment 73G E90 73G E90
Jun/05 0 0 0 0 75%
Jan/06 0 30 0 0
Jun/06 0 30 0 31
50%
Rightsizing
From Guatemala City Panama City Panama City Panama City Panama City Panama City 78%
To Managua Managua San Andres Barranquilla Cartagena Guayaquil
Equipment 73G E90 73G E90 73G E90 73G E90 73G E90 73G E90
25%
Jun/05 60 0 30 0 30 0 22 0 22 0 45 0
Jan/06 62 0 30 0 0 31 0 31 0 31 13 31
Jun/06 30 30 30 30 0 31 0 31 0 31 6 46
0%
Source: BACK OAG (Oct 05)

42. Y
COP
200 400

43. EMBRAER 190 Initial Network
New Routes
Rightsizing
Source: jetBlue website, BACK OAG (Oct/05) and ATI News

44. New Success Stories To Be Written Shortly
Firm order of 12 E170
plus 8 options Firm order of 4 E170
Firm order of 2 E170 and 1 E190 Firm order of 15 E170
plus 4 options

45. New Success Stories To Be Written Shortly
Firm order of 6 firm E190
Firm order of 14 EMBRAER 195 Firm order of 2 E170 and 3 E175

46. EMBRAER 170/175 EIS Statistics
• Operating Summary
Operators 8
Aircraft in Service 87
Flight hours 167,700
Flight Cycles 115,200
(as of Oct 14th, 2005)
IS 19/Oct/05

47. EMBRAER 170/190 Family Order Book
Firm
Firm Orders Options Total Deliveries
Backlog
EMBRAER 170 191 133 324 81 110
EMBRAER 175 22 - 22 9 13
EMBRAER 190 185 219 404 2 183
EMBRAER 195 29 31 60 - 29
Total 427 383 810 92 335
(as of September 30th., 2005)

48. Embraer
Market
Forecast

49. Embraer Market Forecast (2006-2025)
Worldwide Jet Deliveries by Capacity Segment
Segment 2006 - 2015 2016 – 2025 2006 - 2025
30 - 60 500 1,050 1,550
61 – 90 1,300 1,650 2,950
91 – 120 1,550 1,900 3,450
TOTAL 3,350 4,600 7,950
30 to 120-seat segment value = US$ 180 billion

50. Embraer Market Forecast (2006-2025)
30 - 120 Seats: 7,950 Jets
Europe Russia
USA, Canada 1,450 & CIS
& Caribbean 525
4,230 18%
53% 7% China
590
7%
Africa &
Latin Middle East Asia
America 280 Pacific
465
4% 410
6% 5%