Embraer Signs New Brazilian Airline to US$ 1.4 Billion Contract

SAO JOSE DOS CAMPOS, Brazil, March 27 /PRNewswire-FirstCall/ -- Embraer signed a contract with the newest Brazilian airline, commanded by the businessman David Neeleman, for the sale of 36 EMBRAER 195 jets. The agreement also includes options for another 20 aircraft and purchase rights for 20 more. The total value of the order, at list price, is US$ 1.4 billion, and could reach US$ 3 billion if all of the options and rights of purchase are confirmed.

"We are indeed proud to have been selected by this new Brazilian airline to bring to the domestic market a fresh, customer-driven alternative for local passengers," stated Frederico Fleury Curado, Embraer President and CEO. "The EMBRAER 195 offers a distinctive combination of performance and comfort and, most certainly, will capture the preference of Brazilian consumers who are looking for more modern and spacious airplanes."

The new company registered a request for an Airline Company Certificate of Approval (Certificado de Homologacao de Empresa de Transporte Aereo - CHETA) with the National Civil Aviation Agency (Agencia Nacional de Aviacao Civil - ANAC) this month and will soon launch a marketing campaign to publicize its name and brand. The first jet will be delivered by Embraer yet this year.

"The EMBRAER 195 is the perfect airplane for the Brazilian market," stressed David Neeleman, President of the new company. "With 30% fewer seats than the aircraft favored by the competition, the EMBRAER 195 offers competitive unit costs and much lower trip costs. Because we can make money with fewer passengers per flight, we can provide nonstop service in more markets than exists today."

Born in the city of Sao Paulo, Brazil, David Neeleman gained broad experience throughout 24 years of outstanding involvement in the air transportation market in the United States. He is the founder and former president of JetBlue Airways, the well-known American low-cost, low-fare airline. Now, Neeleman has decided to found a company in Brazil that flies with airplanes manufactured by Embraer.

The EMBRAER 195 will be configured in a single-class layout, comfortably accommodating 118 passengers in a cabin with 6 feet and 7 inches (2 meters) headroom and two leather seats on each side of the aisle, without the unpleasant "middle seat". A state-of-the-art in-flight entertainment system, with Live TV and individual screens, will be available and each passenger may select the programming of their preference. With its range of 2,200 nautical miles (4,077 km), the jet will be able to fly nonstop routes between any two major Brazilian cities.

The largest and newest aircraft of the four-member E-Jets family, the EMBRAER 195 entered revenue service in September 2006. On December 31, 2007, the EMBRAER 170/190 E-Jets had logged 764 firm orders and 786 options from more than 40 customers in 25 countries on five continents and had surpassed 1.2 million flight hours.

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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