Merrill Lynch 7th Annual Global Industries Conference in May 2005. Luís Carlos Affonso, Senior Vice President of Embraer, discusses Embraer's product portfolio including their regional jets, military aircraft, and plans to enter the business jet market. Embraer has a global presence and focuses on high technology, qualified personnel, and customer satisfaction. Their regional jets have performed well and Embraer forecasts continued jet deliveries and a growing backlog of orders. Embraer also aims to be a major player in business aviation within 10 years by providing innovative products and services.

1. Merrill Lynch
7th Annual Global
Industries Conference
May 10th, 2005
Luís Carlos Affonso
Senior Vice-President Corporate Aviation Market

2. 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.

3. Aerospace Industry Fundamentals
SUCCESSFUL
BUSINESS
High Qualified Global Cash Flexibility
Technology People Presence Intensiveness
Customer Satisfaction
Backbone of our entrepreneurial action

4. Global Business
Operations in Brazil, United States, Europe and Asia
France
USA Le Bourget
Villepinte
Nashville
Palm Beach Gardens
China
Beijing
Fort Lauderdale
Jacksonville
Portugal Harbin
Alverca
Singapore
Brazil Singapore
Gavião Peixoto
Botucatu
São José dos Campos
Eugênio de Melo
ELEB

5. Product Portfolio
Commercial Aviation Defense Business Aviation
Intelligence
Surveillance &
Reconaissance
The Legacy
ERJ 145 Family
Combat
Training
New products
Transport
EMBRAER 170/190 Family

6. Regional Jets - A Dynamic Tool
When markets are strong…
RJs expand catchment areas by
adding more spokes to carrier hubs
in addition to:
• increasing route frequency
• supplementing mainline jet capacity
• introducing secondary-to-secondary
market service
• opening new “long & thin” routes
with small, low-risk capacity.

7. Regional Jets - A Dynamic Tool
… and when markets are weak
RJs help to defend an airline’s
competitive market position by:
• maintaining high route-frequency
• preserving network integrity and
overall market presence
• replacing unprofitable mainline jet
capacity service
• rightsizing aircraft capacity to match
demand.

8. ERJ 145 Family Orderbook
Firm
Firms Options Total Deliveries Backlog
ERJ 135 123 2 125 108 15
ERJ 140 94 20 114 74 20
ERJ 145 681 211 892 634 47
Total 898 233 1,131 816 82
(as of 1st quarter, 2005)

9. Beyond the Current Model...
There is a need for a new TOOL
RASK / M
Regional Airlines
Network Airlines
Low Cost
Carriers
E-Jets
Capacity
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

10. The E- Jets Family
Certification
Mid 2006
Certification
Mid 2005
Certified
CTA / EASA
TC Mid 2005
Certified
CTA / FAA / EASA
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

11. EMBRAER 170/190 Recent Announcement
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

12. EMBRAER 170/190 Family Orderbook
Firm
Firms Options Total Deliveries
Backlog
EMBRAER 170 172 137 309 56 116
EMBRAER 175 15 - 15 - 15
EMBRAER 190 155 230 385 - 155
EMBRAER 195 15 20 35 - 15
Total 357 387 744 56 301
(as of 1st quarter, 2005)

13. Jet Deliveries Forecast
Aircraft Deliveries as required by market demand
160 161
148 145 145
131
96 101
59
32
4
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E 2006E

14. Backlog
In 1st Quarter 2005 - US$ 24,9 billion in total orders,
including US$ 9,9 billion in firm orders
US$ billion
Firm Orders 28,1 27,6
24,9
Options 24,1 23,4
22,1
10,6 10,1
17,7
11,4 10,7 9 15
6,4
17,5 17,5
13,2
4,1
12,7 12,7
11,3
9,9
3,0
0,6 1,2 3 4
0,6 1,2
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1Q05

15. Defense Market Products
Integrated Market Approach
Systems Training Intelligence, Combat Transport
& Services Surveillance and
Reconnaissance

16. ACS – Aerial Common Sensor
• Embraer will be responsible to supply the new Intelligence and Reconnaissance
Aircraft to the U.S. Army and U.S. Navy.

17. Embraer in
Business Aviation

18. Business Aviation Market Size
33.6
3.3
6.0
23.4
Fractional Ownership
1.9 4.5
Charter and
Aircraft Management 4.1
2.6
FBO 1.2
3.8
MRO
Completion and 2.2
Refurbishment 1.0
16.0
Airframe / OEM 10.5
(2004 US$ billions)
Source: AT Kearney and
Embraer estimates
2004 2014

19. Embraer Competitive Factors
Solid position in the commercial aviation market
Enterprise expertise
Ability to identify market and product opportunities
Development of differentiated products at competitive costs
Industrial efficiency
Global customer support and services

20. Embraer Competitive Factors
Solid position in the commercial aviation market
Enterprise expertise
Ability to identify market and product opportunities
Development of differentiated products at competitive costs
Industrial efficiency
Global customer support and services
Business Aviation Market experience
General Aviation previous experience

21. General Aviation Experience
Seneca
Minuano
Xingu
Carajá
Ipanema
More than 2,500 aircraft delivered

22. Embraer Competitive Factors
Solid position in the commercial aviation market
Enterprise expertise
Ability to identify market and product opportunities
Development of differentiated products at competitive costs
Industrial efficiency
Global customer support and services
Business Aviation Market experience
General Aviation previous experience
Worldwide acceptance
Continuous market understanding and product enhancement
Unmatched reliability levels

23. The world discovers the Legacy
49 aircraft, 12 countries, the right choice

24. Legacy Landmarks
2002 2003 2004 2005
41,000 ft
Enhancements Short Runway Ceiling
Performance
LCY
Operation
Maintenance
Plan
Range
New Interior
Certification
CTA / FAA / JAA / CIS

25. Legacy Landmarks
EVS
LED
lighting
EFB
Enhancements 9,500 ft Take-off
Landing Altitude
to come
HSD
Window Shade
Promises made … promises delivered

26. Legacy Authorized Sales Representative Network
United Kingdom and Ireland
Sub – Saharian African Countries
Belgium Monaco
Netherlands Côte d’Azur
Luxembourg
Growing Sales Structure

27. Super midsize category market share
80% of 2005 production sold
15%
11% 11%
8%
2002 2003 2004 2005-2014
Consistent deliveries performance

28. Vision
To become a major player in the Business Aviation Market
within 10 years by providing innovative and differentiating
product and service solutions with added value to our
customers and shareholders.

29. Understanding the market
In-depth assessment of the Business Aviation Market
4 advisory board meetings
4 global market surveys
3,000 operators surveyed
9 concept-aircraft tested + 6 under evaluation

30. Integrated solution
Comprehensive training program
Outstanding support and total care programs
Extensive service centers coverage
Aircraft exchange facilitation
Third-party financing packages
FBO and aircraft management partnerships
Truly revolutionary products

31. Truly revolutionary products – design drivers
Premium comfort Docile flying qualities
Outstanding performance Next generation engines
Low operating cost Designed for high utilization
Human factors High Availability

32. Truly revolutionary products
Very Light and Light Jets by Embraer

33. Very Light and Light Jets
Program Data
Item Embraer VLJ Embraer LJ
Price US$ 2.75 million US$ 6.65 million
Entry into Service mid 2008 mid 2009
Investment US$ 235 million
Preliminary data

34. Product portfolio expansion
Global
Ultra-Long Range
Large
Super Mid-Size
Mid-size
Mid-light
Light
Entry
Very-light

35. Financial
Data

36. Net Revenues and Gross Margin
6.7% • 91% of sales are exports (2004)
Customer Services
& Others 76.1%
6.9% Airline
Corporate Market
Market
10.3 %
US$ million
Defense Market
39,6% 39,4%
37,7%
34,1%
32,0% 32,0%
28,2%
3.440,5
2.762,2 2.927,0
2.525,8
2.143,5
1.837,3
1.353,5
1998 1999 2000 2001 2002 2003 2004
CAGR 14%
Annual growth 77% 36% 50% 6% -14% -15% 60%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

37. Income from Operations
US$ Million
22.3%
20.0%
18.6%
16.7% 15,8%
12.7%
12.3%
651.4
462.1 469.6 543,9
368.0
264.8
171.7
1998 1999 2000 2001 2002 2003 2004
CAGR 18%
Annual Growth 250% 114% 26% 41% -28% -41% 105%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

38. Net Income
US$ Million 16,7%
12,8%
11,2% 11,10%
10,7%
8,8% 380,2
320,7 328,4
6,3%
234,5 222,6
145,3 136,0
1998 1999 2000 2001 2002 2003 2004
CAGR 15%
Annual Growth 4,618% 61% 37% 2% -32% -39% 180%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

39. PP&E and R&D – Cash Flow
US$ million
200
173
180
158 152
160 143
140
114 119
120 111
100 PP&E
100
77 R&D
80 70 64 66
59
60 50
40
20
0
2000 2001 2002 2003 2004 2005 E 2006 E
Gross R&D amounts
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

40. Thank you!