1. GMS 120-A06
DEFENSE AND
GOVERNMENT
MARKET
Farnborough 2006
Investors Meeting
July 19 th, 2006

2. MARKET NICHES
ISR
Transport
Training
Sistems
And Services
Light Combat
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 2

3. BUSINESS MODEL
[ Revenues around 10%
[ Low level of investment
no capital risk
[ Non-recurring investments
are paid by first clients
[ Very positive cash flow
programs
It means that Embraer Defense programs have
high level of shareholder added value
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 3

4. EXISTING DEFENSE PROGRAMS
SUPER TUCANO
Brazilian Air Force
99 aircraft
Deliveries: 41
Colombian Air Force
25 aircraft
First export contract
5 will be delivered this year
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 4

5. EXISTING DEFENSE PROGRAMS
TRANSPORT
[ TAME – Equador
Two 170 and one 190 were delivered this year
[ Angola
One Legacy was contracted
EMBRAER transport aircraft are being used by 10 governments
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 5

6. EXISTING DEFENSE PROGRAMS
The Brazilian Air Force ISR Fleet is presenting
outstanding operational reliability levels (99%+)
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 6

7. EXISTING DEFENSE PROGRAMS
ISR
Intelligence Surveillance
and Reconnaissance
[Greece
[Mexico
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 7

8. EXISTING DEFENSE PROGRAMS
Brazilian Air Force F-5
Modernization Program
[Total Fleet: 46 aircraft
[7 were already delivered to
Brazilian Air Force
[Integration of advanced
fire control radar, avionics,
new weapons and
electronic warfare package
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 8

9. PROPOSALS SUBMISSION
[ 9 multi-mission Legacy India
(target towing, aerial
photography, sigint)
Decision expected in 2007
[ 18 Super Tucanos Singapore
Decision expected in 2006
[ 36 Super Tucanos
Turkey
Decision expected in 2007
Total amount ~ US$ 1 billion
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 9

10. MARKET COVERAGE
[ Worldwide operations
[ Focus on:
[Latin America
[Asia (Indian
Subcontinent and
Southeast Asia)
[Some countries in
Europe
[USA
GMS120-A06 INFORMAÇÃO DE PROPRIEDADE EMBRAER 10