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The first aircraft produced by HEAI - Harbin Embraer Aircraft Industry Company Ltd., the joint venture established between Embraer with Harbin Aircraft Industry (Group) Co., Ltd. and Hafei Aviation Industry Co., Ltd., (companies controlled by AVIC II - China Aviation Industry Corporation II) , was rolled out and completed its first flight earlier today. The ceremony was attended by high ranking Chinese and Brazilian government authorities, executives from China’s top airlines, as well as representatives of partner and supplier companies.

“The first Embraer aircraft manufactured outside Brazil represents Embraer’s long-term commitment to the Chinese aviation industry, from both the airline operation and industrial points of view,” said Maurício Botelho, President and CEO of Embraer. “We firmly believe that the satisfaction of our customers is the most important focus of our entrepreneurial action and Harbin Embraer is well positioned to undertake this endeavour in the Chinese marketplace, producing our worldwide successful ERJ 145 aircraft family with the same quality standards and level of product support as those manufactured in Brazil.”

“The cooperation between AVIC II and Embraer will be a long-term, strategic and mutual beneficial cause for both companies. We will make efforts to ensure bilateral cooperation a new successful model of South-South Cooperation,” said Professor Zhang Yanzhong, President of AVIC II.

Since HEAI’s business license was granted on January 13, 2003, the parties involved have been fully engaged in starting the new company and manufacturing of the first airplanes. In just eleven months, the relevant HAFEI facilities were refurbished, jigs and tools were prepared, employees were hired and trained, and the first aircraft was assembled on schedule. The Company currently employs 152 people, a number that is slated to reach 180 by July 2004.

The facilities in Harbin extend Embraer’s presence in the People’s Republic of China where the Beijing Representative Office, responsible for marketing and sales activities in the Chinese territory, was inaugurated in 2000. This was followed by a 750 sq. m. depot and distribution center with an inventory of more than 6,000 different aircraft spare parts.

The successful ERJ 145 family derives from a modern design that stands out in the world market for its operational efficiency, low operation and maintenance costs, and high levels of safety and comfort. More than 750 aircraft of this family are in operation worldwide.

Note to Editors

Embraer (Empresa Brasileira de Aeronáutica S.A. - NYSE: ERJ; Bovespa: EMBR3 and EMBR4) is a major aerospace company with 34 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft for the global airline, defense and corporate markets. With headquarters in São José dos Campos, state of São Paulo, the Company has offices and customer service bases in Australia, China, France, Singapore and the United States. Embraer is among Brazil’s leading exporting companies. As of September 30, 2003 Embraer had a total workforce of 12,607 people, and its firm order backlog totaled US$ 10.4 billion.


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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 the Company’s businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among other: general economic, politic and trade conditions in Brazil and in those markets where the Company 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. The Company 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 Company expectations.

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