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Tue, Feb 03, 2004

Harbin Embraer Clinches ERJ 145 Deal with China Southern Airlines

Delivery Of Aircraft To Start In June

Embraer is reaching into the Chinese market aggressively, as evidenced by a recent aircraft order.

On Monday, Harbin Embraer announced the sale of six ERJ 145 jets to China Southern Airlines. The contract marks the first order placed by a Chinese airline with Harbin Embraer Aircraft Industry Co. Ltd. (HEAI), the joint venture between Brazil's Embraer and China's Harbin Aircraft Industry Co. Ltd. (HAI) and Hafei Aviation Industry Co. Ltd. (HAFEI), both controlled by China Aviation Industry Corporation II (AVIC II).

"This initial order rewards Embraer and its Chinese partners' efforts to expand and strengthen commercial ties with clients based in this rapidly developing economy," said Mauricio Botelho, President and Chief Executive Officer (CEO) of Embraer.

"The fact that in such a short time, teams of technicians have been trained, an assembly line has been implemented, followed by the rollout of the first ERJ 145 produced in China and the first order for this aircraft, only reflects Embraer's determination and commitment to our presence in that country."

Under the agreement with China Southern, deliveries are expected to start in June of 2004 and stretch until January 2005.

China Southern has been the largest airline in China for the past 23 years. Currently, it connects more than 80 cities around the globe and its market share at home is 38 percent. This deal increases the ERJ 145 fleet in China to 11 aircraft, adding up to the five airplanes operated by China Southern-controlled Sichuan Airlines since 2000.

In a recent market outlook report, Embraer pegged total Chinese demand for regional jets in the 30 to 120-seat range at 635 units between 2004 and 2023.

The ERJ 145's built in Harbin under license from Embraer feature the same characteristics of the successful ERJ regional jet family made in Brazil by Embraer: a modern design that has stood out in the world market for its operational efficiency, low operating costs and high levels of safety and comfort. More than 750 aircraft of this family are in operation worldwide.

As of December 31, 2003 Embraer had a total workforce of 12,941 people, and its firm order backlog totaled US$10.6 billion.

FMI: http://www.embraer.com

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