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Monday, July 14, 2008

Embraer Breaks Delivery Records

Embraer delivered 52 aircraft during the second quarter of 2008 (2Q08), closing out the semester with record of 97 jets delivered. This result is a 59 percent increase over the 61 airplanes delivered during the first semester of 2007. The company's firm order backlog for the Commercial Aviation, Executive Aviation, and Defense and Government segments also ended the quarter at the highest level in its history, totaling $20.7 billion.
During 2Q08, Embraer delivered 43 jets to the Airline Market and nine jets to the Executive Aviation segment. With 97 jets delivered during the first semester, Embraer reaffirms its estimate of delivering 195 to 200 jets in 2008, tending toward the higher figure, as well as 10 to 15 Phenom 100 jets.
The continuity shown by Embraer's production lines has reduced the differences in number of aircraft delivered from quarter to quarter, resulting in better financial planning and also less volatility on its cash flows, said the company.
During the second quarter of 2008, Embraer signed contracts for the sale of seven ERJ 170 jets to the ETA Star Group, from Dubai and for five ERJ 175 jets to TRIP Linhas Aereas, which is one more Brazilian airline that will fly Embraer jets. In the Defense and Government area, the company signed a contract with the Brazilian government for the sale of two ERJ 190 jets configured for transporting government officials. Furthermore, Executive AirShare, of Kansas City, Mo., increased its order for Phenom 300 jets to four firm orders and four options.
The Phenom executive jets continued to show positive sales results, with the number of firm order contracts approaching 800 aircraft. The certification program of the Phenom 100 is on schedule and has four prototypes flying for the certification tests.

Indian Deal
At the same time, Embraer announced a deal with the Indian Government for three EMB 145 AEW&C (Airborne Early Warning & Control) jets. The contract includes a comprehensive logistics package comprised of training, technical support, spare parts, and ground support equipment.
The proven ERJ 145 platform, currently being used on Intelligence, Surveillance and Reconnaissance (ISR) missions in Brazil, Mexico and Greece, will join the AEW&C Program under the responsibility of India's Defense Research & Development Organization (DRDO).
"Our relationship started in 2003 with the purchase of five Legacy aircraft for transporting public officials," said Luiz Carlos Aguiar, Embraer executive vice president, Defense and Government Market. "In our commitment to a long-term relationship with the Indian Government, we look forward to continue collaborating in strengthening the country's airborne operational capabilities."
The first delivery is scheduled for 2011. The three aircraft will be outfitted by the customer with cabin equipment and mission systems, and will join four Legacy jets in operation by the Indian Air Force (IAF) used to transport Indian VIPs, as well as foreign dignitaries. A fifth Legacy belongs to the Border Security Force (BSF), under India's Home Ministry.