EMBRAER AND REPUBLIC SIGN AN AGREEMENT FOR NEARLY US$ 1.0 BILLION
The biggest E-Jets customer chooses to increase its fleet with another 24 EMBRAER 190s

Embraer and Republic Airlines, the largest E-Jets operator in the world, signed a Letter of Intent (LOI) for the sale of 24 EMBRAER 190 jets, today, at the 47th Farnborough International Airshow, in England. The total value of the agreement, at list price, is US$ 960 million, based on January 2010 economic conditions.

“It is a great honor to announce this new agreement for additional EMBRAER 190 jets. We have a long and successful partnership with Republic Airlines. They already operate all three models of our ERJ 145 jets family, as well as the EMBRAER 170, EMBRAER 175 and EMBRAER 190,” said Paulo César de Souza e Silva, Embraer Executive Vice President, Airline Market. “This is further proof of the flexibility and convenience the E-Jets bring to airlines. The four aircraft models share more than 86% commonality, which means reduced training and maintenance costs, while keeping the same comfortable cabin and modern systems.”

The Company’s relationship with Republic dates back to 1999, when Chautauqua Airlines, also a subsidiary of Republic Airways Holdings, took delivery of its first ERJ 145 for the US Airways Express operation. Chautauqua Airlines currently operates the three models of the ERJ 145 family – the ERJ 135, the ERJ 140 and the ERJ 145 – totaling 78 aircraft, under the colors of American Connection, Continental Express, Delta Connection, Frontier Airlines, Midwest Airlines, and US Airways Express. Republic Airways Holdings, which owns six airlines, operates a total number of 223 Embraer jets.

“It is my distinct pleasure to announce a further expansion of our partnership with Embraer,” said Bryan Bedford, CEO of Republic Airways Holdings. “This new agreement confirms our commitment to the E-Jet family. We chose them again because passenger comfort, mission performance, especially in hot and high markets like Denver (DEN), and compelling economics are hallmarks of the E-Jets product line. We will start to take delivery of six EMBRAER 190 jets in mid 2011 and we also have flexibility through conversion rights to the EMBRAER 195 in a 116 seat single class configuration with our stretch seating interior.”

The U.S.-based company currently has 145 E-Jets in its fleet (76 EMBRAER 170s, 54 EMBRAER 175s, and 15 EMBRAER 190s), operating under the colors of Delta Connection, Frontier Airlines, Midwest Airlines, United Express, and US Airways Express. The first delivery of the new EMBRAER 190s is scheduled for the first half of 2011.

Embraer press release, São José dos Campos, July 21, 2010

Brazilian airline increases the number of firm orders to 41 aircraft

Embraer has signed an additional contract with Azul Linhas Aéreas Brasileiras for the sale of five more EMBRAER 195 jets. The total value of the deal, at list price, is US$ 211 million, under January 2010 economic
conditions. This order is already included in Embraer’s firm order backlog for the second quarter of 2010 as “Undisclosed customer”.

The five EMBRAER 195 jets will be delivered yet this year, and by December, Azul will have 26 E-Jets in its exclusively Embraer fleet.

After adding in the 36 aircraft ordered in March 2008 (five EMBRAER 190s and 31 EMBRAER 195s), Azul now has a total of 41 firm orders for Embraer jets, as well as options for another 20 aircraft and purchase rights for 20 more.

“There is no greater sense of satisfaction for a manufacturer than to receive more orders from an important customer,” said Paulo César de Souza e Silva, Embraer Executive Vice President, Airline Market. “This new order confirms the customer’s confidence in our product. We are building a successful commercial partnership with Azul that I am certain will continue for many years.”

Azul took delivery of its first Embraer aircraft in December 2008. It began operations a few days later, out of Viracopos Airport (VCP), in the city of Campinas, outstate São Paulo, to Porto Alegre and Salvador. The airline currently serves 21 cities in Brazil and continues to expand the number of destinations. It has carried more than three million passengers in about a year and a half of operation. Investments also include the acquisition of a flight simulator that is already in use to train the company’s pilots.

“Our customers love the safety, comfort, and reliability of the E-Jets. This additional order is fundamental for accelerating Azul’s growth even more,” said David Neeleman, Chairman of Azul Linhas Aéreas Brasileiras. “This contract also strengthens our ties with Embraer and, above all, it is undisputed proof of our belief in stimulating air traffic in Brazil with Azul’s winning formula that allies excellent services with affordable prices.”

The new EMBRAER 195 jets for Azul will be configured identically to those that were previously ordered, comfortably accommodating 118 passengers in a single class. They will have the latest entertainment system, with individual monitors, by which each passenger may select the programming of their preference. With an autonomy of 2,300 nautical miles (4,260 kilometers), the jet is able to fly nonstop on any route between Brazilian capital cities, for more flexible operations and lower costs.

Embraer press release, São José dos Campos, July 19, 2010

Largest regional airline in South America already operates six EMBRAER 175 jets

Embraer and TRIP Linhas Aéreas announced the closing of a contract for the sale of two EMBRAER 190 jets, today, at the 47th Farnborough International Airshow, in England. The aircraft will be configured with 106 seats, and the value of the deal, at list price, is US$ 80 million, based on January 2010 economic conditions.

“We are honored to be a part of the solid growth of TRIP, which is an airline whose work is very important for integrating the commercial aviation system in Brazil,” said Paulo César de Souza e Silva, Embraer Executive Vice President, Airline Market. “The choice of the EMBRAER 190, which joins the six EMBRAER 175s already operated by TRIP, shows, once again, that the EJets family, which was designed specifically for
the 70- to 120-seat segment, offers the appropriate flexibility, economy, and comfort for efficiently meeting the demands of a diverse range of markets.”

TRIP currently operates six EMBRAER 175 jets with a classic, single-class configuration of 86 seats. Five of the airplanes come from the contract signed with Embraer, in June 2008, that also included options for another ten aircraft (two of which were confirmed, today), and purchase rights for another 15. The other jet is used through a leasing contract with ECC Leasing, an Embraer wholly owned subsidiary.

“We first chose the EMBRAER 175, after an extensive technical and economic evaluation. Now we are taking another step forward, by choosing the EMBRAER 190, from the same E-Jets family, which has all of the successful attributes of its smaller brother: best operating cost versus passenger comfort, performance on short runways, and seating capacity appropriate to our business profile,” said José Mário Caprioli, President of TRIP Linhas Aéreas.

“Furthermore, the big similarity between the two jets will reduce maintenance and training costs while, at the same time, increasing the flexibility of our operations.” The Brazilian airline should receive its first EMBRAER 190 airplane during the second quarter of 2011, thus increasing the carrying capacity of its EMBRAER 175s, which is now the biggest airplane in the company’s fleet. For more information on the E-Jets, see http://www.EmbraerCommercialJets.com.

Embraer press release, São José dos Campos, July 19, 2010

Air France subsidiary operates a 100% dedicated Embraer jet fleet

Embraer achieved a significant milestone, today, with the delivery of the 20th E-Jet to Regional - Compagnie Aérienne Européenne, a wholly owned subsidiary of the Air France Group. The delivery of the aircraft – an EMBRAER 170 – marks the last of a total of 20 firm orders by Regional. The French carrier keeps four options for the E-Jets family.

“The delivery of the 20th E-Jet to our largest European customer is a terrific achievement for Embraer,” said Paulo César de Souza e Silva, Embraer Executive Vice President, Airline Market. “With 53 Embraer jets in operation at Regional, it is gratifying to see the confidence the Air France Group has in our aircraft. It is an honor for us, as we remain fully committed to supporting their operations and ongoing fleet development.”

The new Regional EMBRAER 170, configured in a 76-seat single-class layout, will join the 19 EMBRAER 170s and EMBRAER 190s already in service. It will be deployed on the carrier’s inter-regional network, which covers 43 major cities in Europe. Regional has a fleet of 53 Embraer aircraft (ten EMBRAER 190s, ten EMBRAER 170, 27 ERJ 145s, and six ERJ 135s), making it the manufacturer’s largest customer in Europe.

“This 20th E-Jet crowns the fleet strategy that we have been leading since 2001,” said Pierre Bosse, Regional CEO Deputy & COO. “Our fully renewed fleet will enable us to upgrade our operational performance, already at outstanding levels, to our customer’s best satisfaction. Moreover, with ten years experience and 53 Embraer aircraft, our maintenance service now stands as a major player on regional MRO market.”

Embraer press release, São José dos Campos, June 28, 2010

EuroLOT, a regional air carrier belonging to the National Treasury of Poland and LOT Polish Airlines, today signed an agreement with the Ministry of National Defence concerning the charter of two aircraft for the transport of the nation's most important people.

Two Embraer 175 aircraft will be used for the transport of the top Polish VIPs. Both will be made fully available for the exclusive use of the most important people in Poland.

The aircraft will be piloted and serviced by the personnel of LOT Polish Airlines (flight and cabin crews). The aircraft, in accordance with the provisions of the agreement, will undergo painting in the colours white and red, with the words "Rzeczpospolita Polska" on one side and "Republic of Poland" on the other side of the fuselage.

The agreement signed is valid through the end of 2013, with option of extension or early termination.

The Embraer 175 is a modern, jet propelled passenger aircraft, equipped with the latest radio navigation equipment and meeting the highest standards of passenger comfort. It can carry 82 passengers. Depending on the load, the range of the Embraer 175 is 3,500 km.

There are currently twenty-two Embraer 170 and 175 aircraft in the LOT Polish Airlines fleet.

LOT press release 08.06.2010