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The first Phenom 100 metal cut
07/06/2006

EMBRAER PERFORMS FIRST METAL CUT FOR PHENOM 100 JET

São José dos Campos, June 7, 2006 – Embraer announced today that it has performed the first metal cut for the Phenom 100 program. The first part manufactured will be assembled onto the first Phenom 100 pre-series aircraft. The event took place at the Company’s main plant in São José dos Campos, Brazil.

“We are very pleased to announce the first metal cut of the first Phenom 100, a landmark event for the program,” said Luís Carlos Affonso, Senior Vice President, Executive Jets. “This achievement is solid proof of Embraer’s focus and commitment to the Phenom program and to delivering a revolutionary jet that will offer the very finest in flight experience.”

The first part, a component of the fuselage that connects to the engine’s pylon, was milled from a block of aluminum alloy by a five-axle high-performance machining center. The milling process was fully automated, drawing data directly from a digital mock-up. Upon completion, the part was approved by a quality control process that employed the use of ultrasound and laser devices for design validation with the digital mock-up.

Designed with the latest engineering software, CATIA V5, the entire production process of the Phenom 100 was planned and simulated with a
digital manufacturing and virtual numericcontrol software.

The Phenom program benefits from the intensive use of digital manufacturing for production simulations of aluminum and composite parts, assembly operations and ergonomics. The manufacture and assembly of the Phenom 100 are based on short cycles to optimize the use of resources and increase production rate.

The main structure of the Phenom jets will be built from aluminum alloy and the secondary surfaces from composite materials, contributing
significantly to the light weight of the aircraft. In the production process, a considerable portion of the structural assembly will be through automated riveting.

Embraer will adopt a multi-site industrial strategy for the assembly of the Phenom jets. Embraer’s plant in Botucatu will house the production of structural components and structural assembly. Final assembly of the Phenom jets will be at the Gavião Peixoto facility as well as interior completion, painting and flight testing.

The Phenom 100 program is steadily advancing for deliveries to begin in mid-2008. In early 2006, Embraer held advisory board meetings for the Man-Machine Interface and completed the Joint Definition Phase of the program. The Phenom 100 program is now in its detailed design and certification phase. The first flight of the Phenom 100 is scheduled for mid-2007.

The Phenom 100 and Phenom 300 Jets

The Phenom 100 and the Phenom 300 jets are best-in-class. Premium comfort, outstanding performance and low operating costs are key design drivers for these jets. Both aircraft will offer pilots and passengers the comfort and style unseen in their categories. The relaxing ambience is enhanced by the size of the generous windows and the most ample cabin in their class. Onboard conveniences include a wardrobe or refreshment center, an aft cabin private lavatory with toiletry cabinet, and satellite communications.

The pilot-friendly cockpit and the docile flying qualities of the two new aircraft will enable single-pilot operation. Drawing from Embraer’s design and engineering heritage, the Phenom 100 and the Phenom 300 will be built for high utilization and availability. For added safety and reliability both jets will offer a standard brake-by-wire system with antiskid capability.

Based upon Garmin’s G1000 all-glass, fully-integrated avionics suite, the Prodigy flight deck offers Phenom Jet operators more advantages than any other avionics suite on today’s market. The pilot-friendly cockpit features three interchangeable 12-inch displays – two primary flight displays (PFD) and one multi-function display (MFD). The system integrates all primary flight, navigation, communication, terrain, traffic, weather, engine instrumentation, and crew-alerting system data and presents the composite information in brilliant, sunlight-readable color on three high-definition displays.

The Phenom 100 will comfortably accommodate four passengers in a typical club configuration. The generous 55 cubic feet (1.56 cubic meters) total baggage capacity is big enough to store their luggage, golf bags and even skis.

It is powered by two Pratt & Whitney Canada’s PW617F engines with 1,615 pounds of thrust each. Its range, with four occupants onboard and maximum operating speed of Mach 0.70, will be 1,160 nautical miles (2,148 km or 1,335 miles) with NBAA IFR reserves, 35 minutes, and 100 nm alternate; or 1,320 nautical miles (2,445 km or 1,519 miles) with NBAA VFR reserves, 45 minutes. The airplane is designed for short field takeoff performance and is capable of flying at 41,000 feet (12,497 m). These characteristics will allow customers to fly nonstop from London (UK) to Reykjavik (Iceland), Lisbon (Portugal), Tunis (Tunisia), Sofia (Bulgaria) or Stockholm (Sweden) at a lower cost than competitive aircraft, including turboprops.

The Phenom 100 is priced at US$ 2.85 million in 2005 economic conditions for FAA certification and is expected to enter service in mid-2008.

The Phenom 300 jet will be configured to accommodate up to nine occupants. Its large baggage capacity of 76 cubic feet (2.15 cubic meters) will conveniently transport passengers’ luggage, golf bags and skis.

It is powered by two Pratt & Whitney Canada’s PW535E engines with 3,200 pounds of thrust each. Its range, with six occupants onboard and maximum operating speed of Mach 0.78, will be 1,800 nautical miles (3,334 km or 2,071 miles) with NBAA IFR reserves, 35 minutes and 100 nm alternate. The airplane is also designed for short field takeoff performance and is capable of flying at 45,000 feet (13,716 meters). These capabilities will permit customers to fly nonstop from London (UK) to Reykjavik (Iceland), the Azores, Cairo (Egypt), Tel Aviv (Israel) or Moscow (Russia) at a lower cost than competitive aircraft.

The Phenom 300 is expected to enter service in mid-2009 and be priced at US$ 6.65 million, based on 2005 economic conditions, for FAA certification.

More information available at www.embraerexecutivejets.com

Note to Editors

Embraer (Empresa Brasileira de Aeronáutica S.A. - NYSE: ERJ; Bovespa: EMBR3) is the world’s leading manufacturer of Commercial jets up to 110 seats with 36 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the global Airline, Executive, and Defense and Government markets. With headquarters in São José dos Campos, state of São Paulo, the Company has offices and customer service bases in the United States, France, Portugal, China and Singapore. Embraer is among Brazil’s leading exporting companies. As of March 31, 2006, Embraer had a total workforce of 17,144 people, and its firm order backlog totaled US$ 10.4 billion.

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 the Company’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 the Company 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. The Company 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 Company expectations.

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