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Wednesday, January 9, 2008

Embraer Sets a Record with the Delivery of 169 Jets in 2007

SAO JOSE DOS CAMPOS, Brazil, Jan. 9 /PRNewswire-FirstCall/ -- Embraer delivered 61 jets to the Commercial Aviation, Executive Aviation, and Defense and Government segments during the fourth quarter of 2007 (4Q07), meeting its goal of delivering 165 to 170 aircraft in 2007. The Company recorded the largest annual airplane delivery figure in its history, 169 jets, and its firm order backlog achieved a new record of US$ 18.8 billion, on December 31, 2007.

During 2007, the Company sought to adapt its industrial processes to the delivery schedule established with customers. Such actions as hiring new employees, implementing a third shift for some of the production processes, and adopting a lean manufacturing concept for the industrial processes, allied with the determination of all employees, led the Company to a 30% increase in the number of deliveries over the previous year.

Embraer delivered 45 jets to the Commercial Aviation segment, 14 Legacy 600s to the Executive Aviation segment and two jets to the Defense and Government segment during the 4Q07.


    Deliveries by Segment          4Q07         2007

    Commercial Aviation             45           130
     ERJ 145                         5             7
     EMBRAER 170                     2            11
     EMBRAER 175                    13            34
     EMBRAER 190                    22            68
     EMBRAER 195                     3            10

    Executive Aviation              14            35
     Legacy 600                     14            35

    Defense and Government *         2             4
     ERJ 145                         -             1
     Legacy 600                      -             1
     EMBRAER 190                     2             2

    TOTAL                           61           169

*Includes only the deliveries of executive jets configured for carrying government officials and aircraft delivered to State-run airlines.

Embraer increased the number of customers in its firm order backlog for the EMBRAER 170/190 jets family in the last quarter of 2007, with the sale of two EMBRAER 170s to Suzuyo, from Japan, 16 EMBRAER 190s - 11 to TACA, from El Salvador, and five to NAS Air, from Saudi Arabia, and ten jets to Virgin Nigeria, from Nigeria, where seven orders are for EMBRAER 170s and three are for EMBRAER 190s. Also in the Commercial Aviation segment, U.S.-based Republic Airways Holdings confirmed 11 options for EMBRAER 175 jets.

In the Executive Aviation segment, a number of firm orders were taken for jets from the Phenom family, bringing the total aircraft sold to over 700. During the same period, the Defense and Government segment signed contracts with the Royal Thai Army and the Royal Thai Navy for the sale of two ERJ 135 jets.

On December 31, 2007, Embraer's order book for the Commercial Aviation segment, by product, stood at:

                                      Firm
       Aircraft Type                 Orders   Options  Deliveries  Firm Order
                                                                     Backlog

       ERJ 145 Family
        ERJ 135                        108       -         108           -
        ERJ 140                         74       -          74           -
        ERJ 145                        733     131         687          46
       Total - ERJ 145 Family          915     131         869          46

       EMBRAER 170/190 Family
          EMBRAER 170                  170     127         139          31
          EMBRAER 175                  129     148          59          70
          EMBRAER 190                  405     452         123         282
          EMBRAER 195                   60      59          13          47
       Total - EMBRAER 170/190
        Family                         764     786         334         430

    TOTAL                            1,679     917       1,203         476

Note: Deliveries and firm order backlog include orders for the Defense and Government segment placed by State-run airlines (Satena and TAME).

The 4Q07 was also highlighted by Embraer's significant participation in the Dubai AirShow 2007, with the announcement of over US $1.1 billion in firm orders, and by the delivery of the 300th aircraft of the EMBRAER 170/190 family of jets to U.S.-based Northwest Airlines, which operates the EMBRAER 175 aircraft through its regional subsidiary Compass Airlines, under the Northwest Airlink brand name.

Delivery Forecast for 2008 and 2009

Embraer expects to deliver between 195 and 200 aircraft, in 2008, in the Commercial Aviation, Executive Aviation, and Defense and Government (State- owned airlines and transportation of government officials) segments, plus another ten to 15 Phenom 100 jets. The Company also estimates delivery of 195 to 200 aircraft to the same segments, in 2009, and another 120 to 150 Phenom 100 and Phenom 300 jets.

Note to Editors

Embraer (Empresa Brasileira de Aeronautica S.A. - NYSE: ERJ; Bovespa: EMBR3) is the world's largest manufacturer of Commercial jets up to 120 seats, and one of Brazil's leading exporters. Embraer's headquarters are located in Sao Jose dos Campos, Sao Paulo, and it has offices, industrial operations and customer service facilities in Brazil, the United States, France, Portugal, China and Singapore. Founded in 1969, the Company designs, develops, manufactures and sells aircraft for the Commercial Aviation, Executive Aviation, and Defense and Government segments. The Company also provides after sales support and services to customers worldwide. On December 31, 2007, Embraer had a workforce of 23,734 employees and a firm order backlog of US$ 18.8 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 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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