2003* conference deutsche bank sept 03

Deutsche Bank

Global Emerging Markets Conference

New York September 2003

Forward Looking StatementForward Looking Statement

This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forw ard -looking statements largely on our current expectations and projections about future events and f inancial trends affecting our business and our future f inancial performance. Th ese forward -looking statements are subject to r isks, uncertaint ies and assumptions, including, among other things: general economic, pol i t ical and business condit ions, both in Brazi l and in our market.

The words “believes,” “may,” “will, ” “est imates,” “continues,” “anticipates,” “intends,”“expects” and similar words are intended to identi fy forward -looking statements. We undertake no obl igations to update publ icly or revise any forward-looking statements because of new information, future events or other factors. In light of these r isks and uncertainties, the forward -looking events and circumstances discussed in this presentat ion might not occur. Our actual results could differ substantial ly from those ant ic ipated in our forward-looking statements.

CommercialCommercialAviationAviationBacklogBacklogDiversificationDiversification

Commercial Backlog GrowthCommercial Backlog Growth

0

200

400

600

800

1000

1200

1998 June 2003

Nu

mb

er

of

Air

cra

ft

ERJ 145 Family EMBRAER 170/190 Family

1997 - 8 RJs customersToday - 34 RJs customers

120

40

80

160

Narrow Body Large Aircraft

Seat Capacity

30 Seat Tprops

50 SeatERJ 145

37 - 44 Seat ERJ 135/140

Filling the Seat Capacity Gap Filling the Seat Capacity Gap

GeographicDiversification

Global PresenceGlobal Presence

Operations in Brazil, USA, Europe, Asia and Austrália

BrasilG a v i ã o P e i x o t o

B o t u c a t u

S ã o J o sé d o s C a m p o s

EUAN a s h v i l l e

A t l a n t aP a l m B e a c h G a r d e n s

F o r t L a u d e r d a l e

FrançaL e B o u r g e t

GBW e y b r i d g e

ChinaB e i j i n gH a r b i n

AustráliaM e l b o u r n e

CingapuraC i n g a p u r a

Recent Geographic DiversificationRecent Geographic Diversification

Q Acquisition of the assets of Celsius Aerotech in

2002

Q JV in China, in 2003

Q Plans for an assembly l ine in Jacksonvil le, FL -

USA, in 2003

BusinessSegmentDiversification

Current SalesDistribution

FY2002

Expected Sales DistributionIn Five Years

Defense

Revenue DiversificationRevenue Diversification

30%30%

CommercialCommercial70%70%

CorporateJets

CustomerService

Defense

5%

Customer

Services

6%

Corporate

Aviation

6%

Commercia l

8 3 %

DefenseMarket

Defense Growth StrategyDefense Growth Strategy

Q Market the existing programs to other Air Forces

QExplore synergies with our strategic partners

(Dassault, Thales, Snecma and EADS)

QDevelop new alliances and partnerships

Defense Products

Today

Planta Industrial em Jacksonville

•Invited to jo in the team in the compet i t ion to develop the U.S.

Army ’s next generat ion Intel l igence, Survei l lance and Reconnaissance system, known as the Aer ia l Common Sensor (ACS).

Industrial Facility Jacksonville

• F o r t h e U . S . d e f e n s e a n d h o m e l a n d s e c u r i t y m a r k e t s .

• E M B 1 4 5 a s s e m b l y l i n e

• Fully qualifies as a compliant U.S. government supplier for defense and homeland security programs.

EMB 145 AEW&CEMB 145 AEW&CEMB 145 platform:• Lower operational cost• In Operation with the SINVAM Project

EMB 145 E-2C C-130 E-3

1000

3000+3500+

Direct

Operating

Cost

(USD/h)

8000+

CorporateAircraft Market

Legacy - A New ConceptLegacy - A New Concept

QQBased on a proven airplane platform (ERJ 135), Based on a proven airplane platform (ERJ 135), with almost 700 aircraft in operationwith almost 700 aircraft in operation

QQRepresents value for customersRepresents value for customersüüComfort Comfort

üüPerformancePerformance

üüCost EfficiencyCost Efficiency

üüReliabilityReliability

QQBest cost benefit alternativeBest cost benefit alternative

Market SegmentationMarket Segmentation

$2.4 - 5.0M

$12 - 13.0M

$6.0 - 7.0M

$9 – 10 M

$16.0 - 22.0M

$24.0 - 32.0M

$ 46 - 64.0M• BBJ1 / BBJ 2• Airbus 319 CJ

• Challenger 604• Falcon 900

• G 400

• Citation X • Falcon 50

• Falcon 2000 • G200 • Challenger 300 • Horizon

• Hawker 800 XP • G100

• Lear 60 • Sovereign

• Lear 45 • Excel

$20.8M

• G 500 / G 550

• Global Express• Falcon 7X• Global 5000

$ 33 - 45.0M

• Citation Jet • CJ1 • CJ2 •

• SJ-30 • Premier • Mustang

• Beechjet400A • Lear 31 • Bravo

Global

Ultra-Long Range

Large

Supermidsize

MidsizeMidlight

Light

Entry

2002

Learsand Citations

$10.0 - 13.0M

$5.0 - 7.0M

$13.0 - 20.0M

$20.0 - 30.0M Challenger

G IV-S P

Lear 55/60

Hawker 800;

Citation VII

Supermidsize

Midsize

Small

Large

Falcon 50

1993

Learsand Citations

$10.0 - 13.0M

$5.0 - 7.0M

$13.0 - 20.0M

$20.0 - 30.0M Challenger

G IV-S P

Lear 55/60

Hawker 800;

Citation VII

Legacy in flightLegacy in flight

Legacy Executive - interior

Supermidsize categorySupermidsize category

10 20 30 40 50ft

m 3 6 9 12 15

Challenger 30023‘8”(7,22m)

25‘(7,62m)

Horizon

G20024‘6”(7,46m)

42’6”(12,94m)

Large categoryLarge category

10 20 30 40 50ft

m 3 6 9 12 15

Falcon 200026‘4”(8,01m)

G40041’(12,49m)

42’6”(12,94m)

Legacy Shuttle - InteriorLegacy Shuttle - Interior

Airline MarketAirline Market

Airline Market TodayAirline Market Today

NorthAmerica

38%

Europe

24%

Latin America & Caribbean

6%

Africa & Middle East

6%

Asia/ Pacific

20%

China

6%

Scheduled airline services - Capacity share % by region

Source: OAG (Jan/2003), Fleet PC (Dec/2002)

Regional80993363Total Fleet 8664Single AisleTwin Aisle Regional69512642Total Fleet 5339Single AisleTwin Aisle Regional80993363Total Fleet 8664Single AisleTwin Aisle Regional69512642Total Fleet 5339Single AisleTwin Aisle

Flee in Service

516Regional

577Single Aisle

94Twin Aisle

516Regional

577Single Aisle

94Twin Aisle

247Regional

433Single Aisle

333Twin Aisle

247Regional

433Single Aisle

333Twin Aisle

1346Regional

1523Single Aisle

520Twin Aisle

1346Regional

1523Single Aisle

520Twin Aisle

67Regional

442Single Aisle

151Twin Aisle

67Regional

442Single Aisle

151Twin Aisle

626Regional

673Single Aisle

864Twin Aisle

626Regional

673Single Aisle

864Twin Aisle

2537Regional

3303Single Aisle

680Twin Aisle

2537Regional

3303Single Aisle

680Twin Aisle

Fleet in Service

Market Evolution - USAMarket Evolution - USA

Share of US Domestic Passenger Enplanements

91%84%

71% 65%

7%16%

19%

5% 9% 13% 16%3%

0%

20%

40%

60%

80%

100%

1980 1990 2000 2Q2002

Majors Low Cost/New Entrants Regionals

Source: AvStat Associates, Inc. analysis of U.S. DOT data.

Jan 1995 – 336 Routes

Low Cost Networks - USALow Cost Networks - USA

Source: BACK OAG (Southwest, Jetblue, Airtran and Frontier)

Jan 2003 – 944 Routes

Source: AEA, ERA, ATI

Share of Intra-European RPKs

86% 82% 82% 81% 79% 78% 73% 73%

8%

14% 17% 17% 17% 18% 17% 19% 19%

5%4%2%1%1%1%

8%

0%

20%

40%

60%

80%

100%

1995 1996 1997 1998 1999 2000 2001 2002

Majors Low Cost Regionals

2002 Low Cost Data Estimated Low Cost: easyJet + Go + Ryanair

Market Evolution - EuropeMarket Evolution - Europe

Low Cost Networks - EuropeLow Cost Networks - Europe

Source: BACK OAG (Ryanair, easyjet, Buzz and GO)

Jan 1995 – 18 Routes

Jan 2003 – 374 Routes

Airline industryAirline industryfinancialfinancialperformanceperformance

$100

$110

$120

$130

$140

$150

$160

Source:

Oct NovJan MarFeb Apr DecMay SepJulJun Aug

199919991999

200020002000

200120012001

200220022002

US Domestic Fare EvolutionUS Domestic Fare Evolution

199819981998

Average Domestic Fare (1,000 miles trip)

20020033

40

45

50

55

60

65

ASM(Billions)

Source:

Oct NovJan MarFeb Apr DecMay SepJulJun Aug

19981998

1999199920002000

20012001

20022002

US Domestic Capacity EvolutionUS Domestic Capacity Evolution

A new marketA new marketcategory is borncategory is born

Seating Capacity

25 50 75 100 125 150 175+

70 to110 Seats

70 to110 Seats

B7

57

B7

37

MD

80

B7

57

B7

37

B7

37

A3

20

A3

19

B7

57

B7

37

MD

80

B7

37

B7

37

B7

57

B7

37

B7

37

B7

37

B7

57

DC

9

B7

57

A3

20

MD

80

B7

37

A3

20

B7

37

A3

19

F10

0

AA

Seat Capacity “Gap” Seat Capacity “Gap”

A3

19

A3

20

E1

70

Seating Capacity

Different European “Fleet Gap” Different European “Fleet Gap”

25 50 75 100 125 150 175+

37 – 80 103 – 270+

37 – 85 112 – 206+

50–70 109 – 169+

44 – 66 131 – 283+

50 - 80 108 – 189+

110 – 180+50 – 111

50 – 213+

Regional Jets or Mainliners? Regional Jets or Mainliners?

Increasing involvement of majors in the acquisition process:

• Wholly owned subsidiaries

• Fleet/ services harmonization among feeders

• Joint procurement by airlines alliances

Increasing pressure for seamless services:

• Mainline cabin confort and features

• Baggage capacity

Fleet management flexibility

- Common logistics

- Same cockpit training

State of the art aircraft technology

- Load factor optimization - aircraft tailored size

Low maintenance costs

Minimum down-time (TAT, checks)

High schedule reliability

Fly-by-Wire

Regional Jets or Mainliners?

Both - New Generation of JetsBoth - New Generation of Jets

Mainline service and aircraft technical characteristics...

... at RJ operating costs and flexibility.

264 aircraft with more than 20 years

(36% of total fleet in service)

264 aircraft with more than 20 years

(36% of total fleet in service)

Market Opportunities – USAMarket Opportunities – USA

9 72

16

71

1311

137

7067

92108

95

827

0

100

200

0 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 31 - 35 > 35

Aircraft Age (Years)

Nu

mb

er o

f A

ircr

aft

61 - 90 91 - 120

Fleet in Service (61-120 seat segment - Dec/2002)

Source: BACK -Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)

The Need for 70-110 Seat Jets The Need for 70-110 Seat Jets

Mainline NetworkDomestic USAFebruary 2003

Source: T100 Back (DOT)

Opportunities for Optimizing Capacity

39% of flights depart

with loads appropriate

for 90-110 seat aircraft}7%

5%

8%

10%

13%14%

12%11%

7%

5%

3%2%

4%

0%

4%

8%

12%

16%

20%

50> 50 60 70 80 90 100 110 120 130 140 150 150+

PAX per Departure

23% of flights depart

with loads appropriate

for 70-seat aircraft }

EMBRAER 190 / 195 in low cost environmentEMBRAER 190 / 195 in low cost environment

ü Offer similar cost per asm of the small narrowbody aircraft (A318, A319, B717, B737-600)

ü Offer lower cost per trip then any narrowbody aircraft

ü State of the art technology

ü Superior comfort to narrowbody aircraft

ü Equivalent or greater individual space per passenger

ü No middle seating

Lower breakeven load factor per flight

Lower risk / higher return alternative for network expansion

Capture of thinner markets

Possibility of higher frequencies in existing markets

JetBlue Airways

Attractive Market Opportunities

n Mid-sized markets lack low-fare service from low-cost carriers (LCCs).

n These markets lack the volume to profitably fill the full-sized jets flown by LCCs with sufficient frequencies.

n Service is limited to small Regional Jets (RJs) operated by major airline affiliates.

— RJs have limited capacity and high unit costs

n JetBlue’s solution for mid-sized markets is a mid-sized, low-cost aircraft to permit profitable market entry.

Mid-sized markets are the largest segment of the U.S. domestic market

U.S. Domestic Markets By Passenger Volume

807

532

359

13072 47 17 15 7 7 3 7

0100200300400500600700800900

50-1

00 200

400

600

800

1000

1200

1400

1600

1800

2000

> 22

00

Passengers Per Day Each Way (PDEWs)

Nu

mb

er o

f Mar

kets

Attractive Market Opportunities

Higher Average Daily Utilization

Estimated Average Daily Utilization

0 1 2 3 4 5 6 7 8 9 10 11 12

Block Hours per Aircraft per Day

Typical Regional Jet

Embraer 190

Mid-sized aircraft is optimal to permit profitable entry in mid-sized markets

Typical Narrowbody Aircraft = 120-199 Seats

Embraer 190 = 100 Seat Aircraft

Typical Regional Airline = 35-70 Seats

Embraer 190: The Ideal Mid-Sized Aircraft

n A high technology, non-derivative aircraftØ Brand-new designØ Learning from past experienceØ International collaboration of GE, Honeywell, Kawasaki, Goodrich, Hamilton-

Sundstrand and othersØ Fly-By-Wire flight controls

n Near-transcon range of 2,100 nm

n Requires only two flight attendants

Embraer 190: The Ideal Mid-Sized Aircraft

Breakeven with 42% Fewer Customers per Flight

Breakeven Customer Load per Flight

162

100113

65

0102030405060708090

100110120130140150160170180

Cu

sto

mer

s

Customer Capacity per Flight Breakeven Customer Load per FlightAirbus A320 Embraer 190

Program StatusEMBRAER 170 / 190

Program StatusEMBRAER 170 / 190

EMBRAER 170 Schedule

GO AHEAD

Initial Definitions Phase

Joint Definition Phase

Detailing and Manufacturing

Roll out

Flight Preparation

First Flight

Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 31999 2000 2001 2002 2003

Certification Tests

FAA/JAA Certification

Q 4

Single Path Certification2

2 Basic, CAT II, Windshear, Autothrottle, additional Flap settings

EMBRAER 170 – Certification Strategy ReviewEMBRAER 170 – Certification Strategy Review

Basic Certification

Mid year

Follow onCertification1

November

1 CAT II, Windshear

EMBRAER 170 – Certification Strategy ReviewEMBRAER 170 – Certification Strategy Review

Single Path Certification*

* Basic cert, CAT II, Windshear, Autothrottle, additional Flap settings

• Certification effort optimization

• Schedule risk reduction

• Training optimization

• Higher maturity at entry into serviceNovember

EMBRAER 175 Schedule

Initial Definitions Phase

Technical Interface Meetigns

Detail Design

CDRs

Detail Design and Manufacturing

1st Flight

Certification Tests

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2002 2003 2004

ü Accomplished

ü Accomplished

ü Accomplished

ü Accomplished

On going

Type Certification CTA

Type Certification FAA/JAA

Technical Interface Meetings

Detail Design & Manufacturing

First Flight

Certification Campaign

1st Delivery

2003 2004 2005 2006Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Preliminary Studies

EMBRAER 190 Schedule - Previous

Certification Campaign

Technical Interface Meetings

Detail Design & Manufacturing

First Flight

1st Delivery

2003 2004 2005 2006Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Preliminary Studies

Certification

First Flight

EMBRAER 190 Schedule - New

20062001 2002 2003 2004 2005Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initial Definitions Phase

JointDefinition Phase

Detail Design and Manufacturing

First Flight

Certification Tests

Type Certification

Accomplished

Q1 Q2 Q3 Q4

Accomplished

EMBRAER 195 Schedule - Previous

Detail Design and Manufacturing

Certification Tests

20062001 2002 2003 2004 2005Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initial Definitions Phase

JointDefinition Phase

First Flight

Type Certification

Accomplished

Q1 Q2 Q3 Q4

Accomplished

EMBRAER 195 Schedule - New

Embraer’sEmbraer’sOrderbookOrderbook

206

79

106

21

Firm

Backlog

6701361485876Total

5021015434581ERJ 145

6821945174ERJ 140

1001276121ERJ 135

DeliveriesTotalOptionsFirm Orders

ERJ145 Family Orderbook

June / 2003

EMBRAER 170/190 Family Orderbook

230120110EMBRAER 190

553309244Total

473215EMBRAER 195

276157119EMBRAER 170

TotalOptionsFirm Orders

June / 2003

Backlog

US$ billion

10.37.99.010.711.4

6.44.13.01.2

16.8

11.313.2

12.712.7

11.3

0

5

10

15

20

25

30

1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03

OptionsFirm Orders

1.23.0

4.1

17.7

24.1 23.4 22.2

19.2

27.1

Deliveries Forecast

77%

51%

37%

15% 13%

7%

2003 2004

ERJ 145 Family EMBRAER 170 Family Corporate

77%

51%

37%

15% 13%

7%

2003 2004

ERJ 145 Family EMBRAER 170 Family Corporate

110 expected deliveries for 2003 and 160 for 2004

2nd Quarter 2003Financial Results

US GAAP

Second Quarter Highlights• Real (R$) appreciation against US Dollar (US$):

ü Negative impact on Gross Margin

ü Contribution to a higher R&D expense

ü Non-realized $85MM loss on swap transactions

• Successive Trade Accounts Receivables collection postponments:

ü Short-term debt and financial expenses increase

ü Mismatched real-denominated assets and liabilities

US$ 4.9 MM Net Income

Second Quarter Highlights• 4 new orders for the EMBRAER 170/190 new jet family:

ü US Airways - 85 firm orders for the EMBRAER 170

ü JetBlue Airways - 100 firm orders for the EMBRAER 190

ü LOT - 10 firm orders for the EMBRAER 170

ü Undisclosed - 10 firm orders for the EMBRAER 190

• Intention of establishing an industrial facility in Jacksonville:

ü It will be used to supply aircraft for the US defense and national security markets

• EMBRAER 175 first flight took place successfully in June.

• Embraer revised the total number of jets to be delivered:

ü In 2003 – from 132 to 110

ü In 2004 – from 136 to 160

• 23 Legacy Shuttle from Indigo excluded from backlog.

Income StatementHighlights

Jet Deliveries

Units

23

28

41

303030

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

US$ Exchange Rate Volatility

1%

20%

37%

-9%-5%

-14%

1T02 2T02 3T02 4T02 1T03 2T03

Final Rate

US$ Million

Net Sales & Gross Margin

798

489567

557

581590

36.5%

39.9% 39.2% 39.3% 39.1%39.7%

0

250

500

750

1000

1Q02 2Q02 3Q02 4Q02 1Q03 2Q0330%

40%

US$ Million - 2Q03

Cost of Goods Sold

2.7%9.4%

87.9%

Material Labor Others

Sales per Segment

First Half 2003

Sales per Market

First Half 2003

Revenue Breakdown

Customer Serviçes

6%

Corporate9%

Defense9%

Comercial76%

Foreing Market

97%

Brazil3%

US$ Million

SG&A and Others Expenses

Note: SG&A includes Profit Sharing and does not include R&D

8576

91

124

7686

15.1%15.5%15.5%15.7%

13.0%

15.2%

-

30

60

90

120

150

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

0%

3%

6%

9%

12%

15%

18%

SG&A and Others SG&A , Others (% of Net Sales)

US$ Million

R&D

4135

26

46

36

51

9.1%

7.3%

4.5%

6.0%

7.4%

5.8%

-

20

40

60

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

0%

2%

4%

6%

8%

10%

R&D R&D (% of Net Sales)

US$ Million

Income from Operations

14283 70

119 1119712.3%

17.0%17.9%19.1%

20.3%

17.3%

0

200

400

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

10%

15%

20%

25%

Net Income & Margin

77

44

5

4137

68

12.2%

6.2%7.0%

9.7% 9.0%

0.9%0

50

100

150

1Q02 2Q02 3Q02 4Q02 1Q03 2Q030%

5%

10%

15%

US$ Million

Net Income 1Q03 x 2Q03

- -

44

(1)

78 ( 66)

(26)

(83)

58 5

1Q03 NET SALES COGS operatingexpense

Financialtransaction

Non-operating

Taxes 2Q03

Balance SheetHighlights

Trade Accounts Receivable

US$ Million

707

247326

736

913790

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

Note: In the short-term

Trade Accounts Receivable

US$ Million

548 511

213

232

287

147

143

24344

27

47

4Q02 1Q03 2Q03

BNDES BNDES negotiation Market Others

736

913790

Inventories

995 992

946

865

1013 1005

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

US$ Million

Inventories by program

81 82 75 74

775 749707

575659

613

67 8097

110

141 196

72 8167

105

128 130

75 77

995 992946

1,0131,005

865

0

200

400

600

800

1000

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

Others ERJ 145 Family/Legacy EMBRAER 170/190 Defense

Net Cash (Debt)

US$ Million

39

360

217

104

(212)

43

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03

Bank Debt - US$ 825.4 million

June 30, 2003

Loans Breakdown

Debt MaturityCurrency Breakdown

• Considering Currency Swaps• Average R$ debt cost: 19.5% p.a. (74.8% of CDI)• Average US$ debt cost: 5.5% p.a.

• Loan Average Maturity: 2 years and 7 months

Long Term39%

Short Term61%

US$ 42%

R$ 58%

Balance SheetCurrencyExposure

Balance Sheet by currency

16% 12% 11% 11% 15% 14%

74%88% 79%

89% 85% 87%

10%10%

Assets Liabilities Assets Liabilities Assets Liabilities

12/31/2002 03/31/2003 06/30/2003

R$ US$ (BNDES) US$

Without swap

Balance Sheet by currency

16% 23%11%

26%15%

26%

74% 77% 79% 74%85%

74%

10%10%

Assets Liabilities Assets Liabilities Assets Liabilities

12/31/2002 03/31/2003 06/30/2003

R$ US$ (BNDES) US$

With swap

PlannedInvestments

US$ million

PP&E and R&D

16

36

60

114

144152

19

70

100

159

0

20

40

60

80

100

120

140

160

180

1999 2000 2001 2002 1Q03

PP&E

R&D

Production Cycle

In Months

3.7

5.04.95.5

6.06.0

8.0

0

2

4

6

8

10

1996 1997 1998 1999 2000 2001 2002

Planned Investments

R&D Total

- Commercial Aviation

- Corporate Aviation

- Others

Defence

20042003

167

126

14

27

53

187

72

3

112

44

Productivity and PP&E 58 44

TOTAL 278 274

US$ million

Estimated US$1.2 billion in investments during the next five years.Defence Investments are funded by their contracts and are not included in the R&D expenses, but in Cost of Sales and Services.

Investor Relationswww.embraer.com

Phone: (55 12) 3927 1216Fax: (55 12) 3922 6070

investor.relations@embraer.com.br