Profile: Embraer - Empresa Brasileira de Aeronautica S.A. (ERJ)

Embraer-Empresa Brasileira de Aeronautica SA (Embraer) is a Brazil-based company engaged in the manufacture of aircrafts for commercial aviation, executive jet and defense and government purposes. The Company has developed a line of executive jets based on one of its regional jet platforms and launched executive jets in the entry-level, light, ultra-large and mid-light/mid-size categories, the Phenom 100/300 family, the Lineage 1000 and the Legacy 450/500 family, respectively. The Company supplies defense aircraft for the Brazilian Air Force based on number of aircraft sold, and sells aircraft to military forces in Europe, Asia and Latin America. In July 2008, the Company acquired a 40% interest owned by Liebherr Aerospace SAS in ELEB–Equipamentos Ltda (ELEB). ELEB is an aerospace system and component manufacturer, and its products include landing gear systems, hydraulics and electro-mechanical sub-assemblies, such as actuators, valves, accumulators and pylons.

Commercial Aviation Business

The Company designs, develops and manufactures a variety of commercial aircraft. The Company’s commercial aviation business is its primary business, accounting for 66.9% of its net sales for the year ended December 31, 2008. The Company has developed the ERJ 145, a 50-passenger twin jet-powered regional aircraft; ERJ 135, a 37-seat regional jet based on the ERJ 145, and 44-seat ERJ 140 as part of the ERJ 145 regional jet family. The Company is developing the EMBRAER 170/190 jet family, its 70-122 seat platform.

The ERJ 145 is a twin jet-powered regional aircraft accommodating up to 50 passengers. The ERJ 145 is equipped with engines built by Rolls-Royce Allison. These engines are designed to operate 10,000 flight hours between overhauls. The ERJ 145 is available in a long-range (LR) version and extra-long-range (XR) version of the aircraft. The EMBRAER 170/190 jet family provides its customers with a choice of four aircraft in the mid-capacity passenger range. The EMBRAER 170 is a 70-80 seat jet and the EMBRAER 175 is a 78-88 seat jet, while the EMBRAER 190 is a 98-114 seat jet and the EMBRAER 195 is a 108-122 seat jet. The EMB 120 Brasilia is a pressurized twin wing-mounted turboprop aircraft that accommodates up to 30 passengers.

The Company competes with De Havilland, Bombardier Inc., ATR, Airbus and Boeing.

Defense and Government Business

The Company designs, develops, manufactures and supports a range of integrated solutions for the defense and government market. Its products include training/light attack aircraft, command and control, intelligence, surveillance and reconnaissance (C4ISR) systems, aerial surveillance platforms, and transport airplanes. It offers a portfolio of customer services, ranging from maintenance and material solutions to contractor logistic support programs. As of December 31, 2008, the Company had sold more than 680 defense aircraft to 20 armed forces and operators worldwide. The Company supplies defense aircraft to the Brazilian Air Force based on the total number of aircraft in its fleet. Its defense and government business accounted for approximately 8% of net sales for the year ended December 31, 2008.

Embraer has developed three aircrafts based on the ERJ 145 regional aircraft platform: the EMB 145 Airborne Early Warning and Control (AEW&C), the EMB 145 Multi Intel and the EMB 145 MP (Maritime Patrol). The EMB 145 AEW&C operates in the Brazilian, Mexican and Hellenic Air Forces. The EMB 145 Multi Intel, also known as the EMB 145 RS/AGS (Remote Sensing/Airborne Ground Surveillance) aircraft, is designed for the electronic and reconnaissance missions. It features sensors for image intelligence (IMINT), signal intelligence (SIGINT) and measurement and signature intelligence (MASINT), and provides real-time imagery and signals intelligence over ground objectives. The EMB 145 MP aircraft is designed to address coastal and blue-water threats. The EMB 145 MP carries out maritime patrol and anti-submarine warfare missions using maritime and ground surveillance radar, electro-optical sensors, as well as communications and surveillance equipment. The EMB 145 MP operates in the Mexican Air Force. The Company has developed the Super Tucano, which is a single-engine, military turboprop that offers solutions for basic to advanced weapons training, such as in-flight virtual training.

The Company competes with Pilatus, Beechcraft, Korea Aerospace Industries, Bombardier Inc., Boeing, Northrop Grumman, Gulfstream, Alenia ATR and EADS CASA.

Executive Aviation Business

The Company has developed a line of executive jets, the Legacy 600, and are developing additional executive jets in the entry-level, light and ultra-large categories, the Phenom 100, Phenom 300 and Lineage 1000, respectively. The Company is marketing its executive jets to companies, including fractional ownership companies, charter companies and air-taxi companies, and high net-worth individuals. The Company’s executive aviation segment accounted for 13.8% of its net sales for the year ended December 31, 2008, resulting from the delivery of 35 legacy 600 jets. In April 2008, the Company launched two new programs in the medium jet categories, namely the mid-light Legacy 450 jet, with a 2,300 nautical miles range, and the mid-size Legacy 500 jet, with a 3,000 nautical miles range.

The Company competes with Dassault Aviation, Bombardier Inc., General Dynamics, Raytheon, Cessna Aircraft Co., Boeing and Airbus.

Aviation Services

The Company provides after-sales customer support services and manufacture and market spare parts for the fleets of its commercial, executive, and defense and government customers. Activities in this segment include the sale of spare parts, maintenance and repair, training and other product support services. Revenues for the aviation services segment accounted for 9.5% of net sales for the year ended December 31, 2008. Its after-sales customer support and spare parts business includes field support; material support, which includes spare parts sales and distribution; product warranty and repair administration; technical support, which includes engineering support, maintenance engineering and technical publications, and training.