Second Quarter 2007 Results

August 15, 2007

Forward Looking Statement

This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our market. The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,”“expects” and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.

Second Quarter 2007 - Summary

• As a result of actions taken regarding the supply chain and industrial process, 2Q07 deliveries came to 36 jets, bringing the total for the first six months of 2007 to 61 aircraft.

• The Company's industrial costs are still at a high level due to longer production cycles and higher man/hour labor costs in its production processes, including those related to overtime work, and the recently hired employees.

Jet Deliveries

Net revenues – Gross Margin

27

36

30

37

25

36

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

1.110

843

1.084

8941.021

808

21,8%

28,7%

22,7%

27,5%28,3%

24,3%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Second Quarter 2007 - Summary

• Backlog reached record high of US$15.6 billion;

• Phenom family has accumulated more than 460 Firm orders;

• Embraer participated in the 2007 Paris Air Show. During the Air Show, important deals were firmed including Lufthansa contract for 30 EMBRAER190 and Japan Airlines (JAL) order of ten EMBRAER 170 jets. Alsoduring the Air Show, Embraer and Brazilian airline BRA Transportes Aéreos signed a preliminary commercial agreement for 20 firm orders of theEMBRAER 195 jet, Italy’s Alpi Eagles confirmed five options for theEMBRAER 195 jet from its original order for five aircraft of this model and GE Commercial Aviation Services (GECAS) confirmed three options for EMBRAER 190 jets

• After the implementation of a new business segment, Customer Services, a comprehensive analysis of our commercial operations and of certain accounting practices, Embraer has modified the application of previously adopted US GAAP accounting policies.

• The change had no effect on Earnings from continuing operations, Net Earnings, Retained Earnings or Shareholders´ Equity. The change resulted in reclassifications on Net Sales, Cost of Sales and Services, Selling Expenses and Interest Income (Expenses), Net, as described below:

1) Expenses related to Product Guarantees are recorded on the aircraft delivery date and estimated upon historical basis. Those expenses were reclassified from Selling Expenses to Cost of Sales and Services;

2) Contratual obligations related to prepaid spare parts, services as training and technical representative assistance have their revenues recorded when “ganhas”by the Company. Formerly, a provision was made for the amounts related to those obligations when the aircraft was delivered, but they were reversed from Selling Expenses against Net Sales.

Second Quarter 2007 – New accounting practices

3) The fulfillment of those obligations described above with the customers, may occur before or after the actual delivery of the aircraft. Obligations accomplished before the delivery date of the aircraft were recorded as revenues “ganhas” against Account Receivables. All other contractual obligations accomplished after the delivery of the aircraft but not yet accounted were recorded in Current Liabilities as Unearned Income;

4) Commercial concessions prior accounted as Selling Expenses, were reclassified as Sales Deductions. The recuperation of part those commercial concessions through financing structures was recorded as Financial Income but it has been reclassified as Gross Sales offsetting Sales Deductions.

Embraer believes that the modification of the previously adopted accounting practice is a more appropriate application, and will facilitate the comparability of the company's financial information with the financial information of other aircraft manufacturers and will enhance investors understanding of its results and financial condition.

Second Quarter 2007 – New accounting practices

2007 Guidance – After Modified AccountingPractices

GROSS MARGINBEFORE AFTER30% at 4Q07 23.5% at 4Q07

EBITBEFORE AFTER10.0% FY07 7.0% FY07

Results & Performance

Jet Deliveries

27

36

30

37

25

36

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Net Revenues and Gross Margin

US$ million

1.8231.937

832

1.110

25,3%

22,7%21,8%

25,4%

1H06 2H06 1Q07 2Q07

Net Revenue by Segment

2Q06 2Q07

Commercial Aviation

63%

Defense and Government

9%

Executive Aviation

16%

Customer Services and

Others12%

Defense and Government

6%

Executive Aviation 11%

Commercial Aviation 69%

Customer Services and Others 14%

EBITDA

US$ Million

248

159

34 51

4,6%4,1%

13,6%

8,2%

1H06 2H06 1Q07 2Q07

Ebitda Ebitda Margin

Net Income

US$ Million

186

26

204

67

9,6%11,2%

3,1%

6,1%

1H06 2H06 1Q07 2Q07

Net Income Net Margin

Aircraft Financing Support

US$ Million

238,9184,4 174

217,4 223,4 231

135,5

139,6

32,4

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

CCF Acc Rec

Inventories

US$ Million

1.648 1.6391.882

2.0472.317

2.621

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Net Cash (Debt) Position

US$ Million

302

527 507416

217128

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Loans

Short Term 27%

Long Term 73%

Brazilian Currency

21%

Foreign Currency

79%

Total Debt of US$ 1,751.5 Million

• Average cost in R$ = 8.67%p/a

• Average cost in US$ =Libor + 1.20% p/aLong-Term Loan Average

Maturity: 3 years and 6 months

Loans Maturity

US$ million

472

5 6 7

9 4 3 3

5 2 2

6 3

1,751

Total Short-term

2008 2009 2010 2011 after2011

Backlog and Delivery Forecast

ERJ 145 Family Order Book

53

53

-

-

FirmBacklog

8621,046131915Total

680864131733ERJ 145

7474-74ERJ 140

108108-108ERJ 135

DeliveriesTotalOptionsFirm

Orders

EMBRAER 170/190 Family Order Book

257744232EMBRAER 195

399

283

69

22

FirmBacklog

2561,374719655Total

79783421362EMBRAER 190

37242136106EMBRAER 175

133275120155EMBRAER 170

DeliveriesTotalOptionsFirm Orders

Backlog

US$ Billion

10,2 13,3 14,8 15,0 15,6

15,3 15,914,9

18,2 18,222,9

10,4

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Firm Options

Jet Deliveries Forecast

160 161

131

101

148 141130

195/205

165/170

2000 2001 2002 2003 2004 2005 2006 2007E 2008E*

* Includes 15/20 Phenom 100

Investor RelationsPhone: + 5512 3927-4404investor.relations@embraer.com.brwww.embraer.com