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Rio de Janeiro, Brazil, June 21, 2012 – During China´s Prime Minister Wen Jiabao’s visit to Brazil for the Rio+20 Conference, in a signing ceremony witnessed by leaders from both nations, Embraer S.A. (BOVESPA: EMBR3, NYSE: ERJ) and Aviation Industry Corporation of China (AVIC) signed an agreement to build Embraer’s Legacy 600/650 executive jets in China, using the infrastructure, financial resources and workforce of their joint venture Harbin Embraer Aircraft Industry Co., Ltd. (HEAI), which started operations in 2002.

The agreement is based on the understanding of both parties about the potential demand of China’s flourishing executive aviation market, and their wish to extend their decade-long strategic partnership.  HEAI’s first executive jet is expected to be delivered by the end of 2013. 

“Today´s announcement marks another milestone in the history of Embraer's long term commitment to China and of Brazil-Sino bilateral relations. This new phase of AVIC-Embraer partnership corroborates what has been referred to by state leaders of both countries as ‘a model of South-South cooperation’,” said Frederico Fleury Curado, Embraer President and CEO. 

“The achievement of Sino-Brazil cooperation in the field of aviation is a hard-won, indispensable of the joint efforts from state leaders and the industry players of both countries. The cooperation on executive jets manufacturing, as the continuation of what the two parties have attained via the joint venture, fits in the strategic development of all parties. It is undoubtedly a win-win strategic international cooperation. As the leader of China’s aviation industry, AVIC will seize the opportunity to develop a platform building executive jets that will meet the demand of the global and China markets, and ultimately assist China’s executive aviation industry progressing into a new stage,” said Tan Ruisong, President of Aviation Industry Corporation of China.

Embraer's presence in China dates back to 2000, when its Beijing Representative Office was established. In June 2010, in light of its increasing customer base, the Company set up its first wholly owned subsidiary in China, the Embraer (China) Aircraft Technical Services Co., Ltd., focusing on after sale support. 

To date, Embraer has 154 firm orders from China market, with 116 aircraft already delivered.  Embraer accounts for around 78% of China’s regional aviation market and is gaining strength in its executive segment with 18 firm orders for executive jets in the year 2011. The cooperation with AVIC on Legacy 600/650 program further consolidates Embraer’s presence in China’s executive aviation market. 

About Aviation Industry Corporation of China

Aviation Industry Corporation of China (AVIC) was founded on November 6 of 2008 through the restructuring and consolidation of China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II). AVIC is a corporation, centered on aviation, but capable of providing whole-value chain services to customers in many fields, from research and development to operation and from manufacturing to finance. Its business units cover Defense, Transport Aircraft, Engine, Helicopter, Avionics and System, General Aviation, Aviation Research, Flight Test, Trade and Logistics, Assets Management, Finance Services, Engineering Planning and Construction, Automobile and etc. It owns almost 200 member companies, over 20 listed companies and approximately 500,000 employees. It is the first Chinese defense enterprise listed as the world Top 500. By the end of June 2011, its total asset reaches RMB 500 billion. 

About Harbin Embraer Aircraft Industry Co., Ltd.

On December 2, 2002, Embraer signed the industrial cooperation agreement with China Aviation Industry Corporation II (AVIC II)  to set up the joint venture Harbin Embraer Aircraft Industry Co,. Ltd. (HEAI) to produce the ERJ145 jets, making it the first facility outside Brazil for regional jets assembly.  In January of 2003, HEAI was inaugurated.

The year 2003 marked HEAI’s completion of the start-to-finish process of “incorporation, production, roll-out and maiden flight,” a historic milestone for aircraft manufacturing in China.  In 2006, the company attained AS9100B certification and became the first commercial aircraft manufacturer in Asia to be certified by the US company NQA.  HEAI joined the International Aerospace Quality Group (IAQG) and was included in the Online Aerospace Supplier Information System (OASIS).  In 2007, the company received the Best Cooperation Award in the Laureates Awards Program, the top honor in China’s aviation industry. In 2008, HEAI was given the International Cooperation Award as part of AVIC’s “China Aviation Times” program.  At the end of 2008, the company was approved by ISO14001 EMS and received certification early the following year.

HEAI’s achievements result from successful cooperation between AVIC and Embraer. The company is often referred to as “another model of South-South cooperation” by both Chinese and Brazilian leaders.  To date, 41 ERJ 145s have been delivered to airlines in China.  HEAI has become an important force to further boost the robust development of China’s regional aviation industry that will enable more Chinese travelers to benefit from regional airline services.

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Note to Editors

Embraer S.A. (NYSE: ERJ; BM&FBOVESPA: EMBR3) is the world’s largest manufacturer of commercial jets up to 120 seats, and one of Brazil’s leading exporters. With headquarters in São José dos Campos, São Paulo, Embraer has offices, industrial operations and customer service facilities in Brazil, China, France, Portugal, Singapore, and the U.S. Founded in 1969, the Company designs, develops, manufactures and sells aircraft and systems for the commercial aviation, executive aviation, and defense and security segments. It also provides after sales support and services to customers worldwide.

This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer’s businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where Embraer does business; expectations on industry trends; the Company’s investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words “believe”, “may”, “is able”, “will be able”, “intend”, “continue”, “anticipate”, “expect” and other similar terms are supposed to identify potentialities. Embraer does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Embraer expectations.

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