Also Announces Training Joint Venture With CAE SimulFlite

Embraer announced Monday at NBAA 2006 that it will build three new service centers in the U.S. dedicated to full-service care for the Phenom 100, Phenom 300 and Legacy 600 aircraft. A fourth service center will be built in 2007, at the Le Bourget airport, in Paris, France. The investment for the new facilities will total around US $40 million.

The criteria for the selection of the service centers were the location and suitability of available sites, skilled workforce in the community, airport infrastructure and resources, and favorable transportation logistics for customers and suppliers.

Embraer says the company thoroughly evaluated locations throughout the Southeast, West Coast and Northeast US... before selecting Ft. Lauderdale-Hollywood International Airport, Ft. Lauderdale, FL; Williams Gateway Airport, Mesa, AZ, and Bradley International Airport, Windsor Locks, CT, as sites for the new service centers. Construction for each facility will commence in 2007 and be completed before the first Embraer Phenom 100 aircraft enters into service in mid-2008.

"As we continue to expand our service center network on all continents, these three U.S. service centers reflect our strong commitment to our Executive Jets customers," said Mauricio Botelho, Chairman, President & CEO of Embraer. "Our goal is to develop a highly-efficient and customer-friendly support infrastructure that will fully meet the expectations of our customers."

Each company-owned service center will consist of a facility with approximately 40,000 square feet, comprising hangar, shops and office space. The service center facilities will be capable of providing full-service aircraft care, including routine inspection, scheduled and unscheduled maintenance and repairs on airframe, engine, avionics and other systems, 24/7 assistance, emergency services (AOG Rescue/Mobile Teams), expendable and repairable parts stock. Services may also include painting and interior refurbishments.

New Training Program

In related news, Embraer also announced it has signed an agreement to form a global training joint venture, which will provide comprehensive pilot and ground crew training to Embraer customers of the Phenom 100 Very Light Jet and Phenom 300 Light Jet aircraft, which were first unveiled at NBAA 2005. The initial training program will be offered at CAE SimuFlite, Dallas, TX beginning with the Phenom 100 entry into service in 2008.

Plans for the joint venture include expansion to Western Europe, and the Eastern US.

Under the terms of agreement, the joint venture will provide entitlement training and postentitlement training for pilots, maintenance technicians, and dispatcher personnel. This is CAE's first training program for the Very Light Jet and Light Jet markets.

"We have a longstanding relationship with CAE and are excited that the new joint venture will be providing Embraer’s Phenom customers with the high-quality training and personalized service CAE is known for," said Botelho. "Our Phenom training program will set the standard for training in the Very Light and Light Jet markets."

CAE and Embraer will work together to develop all required courseware and provide a team of highly qualified instructors to deliver all ground school and simulator instruction. As part of the training program, CAE will design and manufacture the first full-flight simulator and combine CAE Simfinity technology and devices into the comprehensive Phenom training program.

Pilots will have the course content tailored to their specific needs identified in the beginning of the process through tests, interviews and curriculum evaluation. Upon request, a mentor pilot program will be available and offered separately.

FMI: www.embraer.com, www.simuflite.com