Airline Is Second U.S. Carrier to Operate Embraer's Newest Airliner

On Tuesday, Embraer announced an order from Republic Airways Holdings for up to 50 EMBRAER 170 airliners. Under the agreement, 13 firm aircraft will begin delivery in the third quarter of 2004. Republic Airways Holdings also holds options on another 37 aircraft of the same model, with 12 to be confirmed by July 1. Delivery of the 13 firm aircraft will begin in the third quarter and continue through the first quarter 2005. The total value of the firm order at list price is US$ 325 million, with a potential value of US$ 1.25 billion if all options are converted. Republic Airways Holdings, through its subsidiaries, is the third largest operator of Embraer aircraft worldwide. The EMBRAER 170/190 family has already attracted 245 firm orders and 305 options from Air Caraibes, Alitalia, Cirrus, GECAS, JetBlue, LOT Polish Airlines, SWISS, and U.S. Airways. U.S. Airways will be the first U.S. operator of the new jet when it begins operations this spring.

In February, the 70-78 seat EMBRAER 170 was awarded final type certification from the Brazilian Centro Tecnico Aeroespacial (CTA), the FAA and the European Aviation Safety Agency (EASA), while also securing a letter of recommendation from the European Joint Aviation Authorities (JAA). Certification paved the way for deliveries of the first EMBRAER 170 units, which began in March.

"This agreement is the continuation of a long association with Republic Airways Holdings and further evidence of the market acceptance of the new EMBRAER 170/190 family of airliners," said Mauricio Botelho, President and CEO of Embraer. "With a fleet of 85 aircraft, Republic is among our three largest operators for our ERJ 145 line, and their move to the new EMBRAER 170 clearly establishes them as a leader in the U.S. market."

"The addition of the EMBRAER 170 jets to the fleet of Republic Airlines will offer expanded opportunities for our business as network carriers continue to look for larger capacity aircraft capable of offering a true mainline product but at regional jet operating economics," said Bryan Bedford, Chairman, President and CEO of Republic Airways Holdings. "This order will allow us to further Republic Airways Holdings' goal of delivering high quality, low cost regional jet lift to our major airline partners."

"To have our new Embraer 170 aircraft chosen to join Republic's fleet of aircraft is the highest praise," Botelho said. "Network carriers that partner with Republic Airways Holdings subsidiaries will find the EMBRAER 170 will follow the same successful path of the ERJ 145."

FMI: www.embraer.com