2005 - defense market and corporate overview

March 29, 2005

5th U.S. Analyst and Investor Meeting

Maurício BotelhoPresident & CEO

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.

Forward Looking Statement

HighTechnology

QualifiedPeople

Global Presence Flexibility

CashIntensiveness

Fundamentals

Aeronautical Industry Fundamentals

CUSTOMER SATISFACTIONBackbone of our entrepreneurial action

Customer SatisfactionBackbone of our entrepreneurial action

Aerospace Industry Fundamentals

HighTechnology

QualifiedPeople

Global Presence

FlexibilityCashIntensiveness

The Outcome of WorldWar ll - strategicnational aircraft

manufacturing projectThe creation of CTA

and ITAEmbraer established in

Origin and Development Privatization (1994)• The Integration of two Cultures

Technological& Industrial

Entrepreneurial+

Evolution

Highlights

• One of the world’s major commercialaircraft manufacturers

• Significant market share

• Global customer base

• Renowned international partners

• Excellent financial performance

• Brazil’s largest exporter in 1999, 2000 and 2001

Customer Diversification

Civil & Defense Aircraft flying in 58 countries on 5 continents

EMBRAER 170/175/190/195

ERJ 135/140/145

Product Diversification

70’s 90’s 00’s80’s

BANDEIRANTE(EMB 110/111)

TUCANO(EMB 312)

BRASÍLIA(EMB 120)

ERJ 145

AEW&C/ RS/ MP

ERJ 135

EMB 326

EMB 321

EMB 121

AMX

BRASÍLIA(EMB 120)

ERJ 140

AL X(EMB 314)

LEGACY

ERJ 145

ERJ 135

ERJ 140

EMBRAER 170EMBRAER 175

EMBRAER 190EMBRAER 195

AMX-TAEW&C/ RS/ MP

AL X(EMB 314)

AMX

ERJ 145 XR

Partnering as a Strategy

• 4 partners• 350 supliers

• 16 partners• 22 supliers

Defense Market

Defense Market Products

Systems& Services

Training Intelligence, Surveillance andReconnaissance

Combat Transport

Integrated Market Approach

Super Tucano

• High-performance evolution of theproven EMB 312 Tucano

• State-of-the-art systems and advanced avionics

• Optimized for advanced training and operational applications in hostile environments

• Can operate from unpreparedrunways, day or night

AMX/ A-1M

• Advanced and fighter lead-in training aircraft

• Developed by Embraer for modern Training / Combat requirements

• Baseline avionics architecture commonality with the Super Tucano

Special Mission AircraftAIR GROUND SEA

EMB 145 AEW&C

• The AEW&C (Airborne EarlyWarning & Control) is equippedwith a state-of-the-art AirSurveillance Radar, Command, Control & Communication Systemand Data-Link

• A perfect blend of Embraer’s proven, reliable and economic ERJ 145 platform

EMB 145 RS/AGS

• An advanced asset capable of providing real-time imagery and electronicintelligence over ground objectives

• It features an advanced Synthetic Aperture Radar (SAR), for day or nightand all-weather imagery of large areas, plus other sophisticated sensors

P-99

• New generation aircraft for missions ranging from MaritimePatrol to complex and demandingAnti-Surface and Anti-Submarine operations

• Features a maritime and groundsurveillance radar, plus othersophisticated sensors like FLIR and Data-Link

ACS – Aerial Common Sensor

• Embraer will be responsible to supply theplatform of the Aerial Common Sensor aircraft ordered by the U.S. Army

Backlog and Delivery Forecast

ERJ 145 Family Orderbook (as of December, 2004)

103

66

20

17

FirmBacklo

g

7981,237336901Total

618998314684ERJ 145

741142094ERJ 140

1061252123ERJ 135

DeliveriesTotal

OptionsFirm

EMBRAER 170/190 Family Orderbook (as of December, 2004)

15-352015EMBRAER 195

297

155

15

112

Firm

Backlog

46755427343Total

-385230155EMBRAER 190

---15EMBRAER 175

46335177158EMBRAER 170

DeliveriesTotal

OptionsFirm

Backlog

US$ 27.6 billion in total orders, including US$ 10.1 billion in firm orders

US$ billion

Firm Orders

Options

6.4

11.4 10.79

10.6 10.1

11.3

12.7 12.713.2

17.5 17.5

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0.6 1.2

4.1

17.7

24.1 23.4 22.1

28.1 27.6

3

Jet Deliveries Forecast

4

3 2

59

96

1 6 0 161

131

1 0 1

1 4 8 1 4 5 1 4 5

1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 E 2 0 0 6 E

Projected Deliveries

60%

36%

15%

31%

50%

73%

9% 14% 12%

2004 2005E 2006E

ERJ 145 Family EMBRAER 170 Family Corporate Aircraft

Investor RelationsPhone: + 5512 3927-1216investor.relations@embraer.com.brwww.embraer.com.br