Brazil – Mexico Market Update BreakfastSeptember 12, 2006

Introduction---------------------------

Brad Lawton, PresidentStar Cutter Company

And 1st. Vice Chairman - AMT

Business Outlook, Opportunities and Resources for Doing Business in Brazil

---------------------------Mario Winterstein

Business Development DirectorAMT

Brazilian Market Update

Brazilian GDP

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2000 2001 2002 2003 2004 2005

Brazilian Industrial Production Output

90

95

100

105

110

115

120

2000 2001 2002 2003 2004 2005

Brazilian Machine Tool Market

0

100

200

300

400

500

600

700

800

900

1000

2000 2001 2002 2003 2004

Brazilian Machine ToolsConsumption

Brazilian Machine ToolsProduction

Brazilian Machine ToolsImports

Brazilian Machine ToolsExports

Autos 2,050,300 2,148,900 2,266,700 2,389,700 2,457,500 2,493,900

Light Trucks 363,950 371,500 381,800 394,800 404,700 411,900

Trucks 114,100 117,806 120,995 123,200 126,510 129,781

Buses 35,370 36,750 37,655 38,875 40,086 41,329

Total 2,563,720 2,674,956 2,807,150 2,946,575 3,028,796 3,076,910

2006 2007 2008 2009 2010 2011

Automotive Production Forecast 2006-2011

In UnitsFonte: Grupo de Forecast Sindipeças (revisão abril de 2006).

13.309 11.903 11.30913.330

18.549

24.200

28.200

2000 2001 2002 2003 2004 2005 2006

Sales - Auto Parts Manufacturers

Observação: Faturamento em valores nominais divididos pelo dólar médio.

(US$ billion)

preliminary forecast

1.100

0.798

0.2600.532

0.843

1.400 1.300

2000 2001 2002 2003 2004 2005 2006

(US$ billion)

Investment - Auto Parts Manufacturers

preliminary forecast

Aircraft Industry

EMBRAER

Brazil is not a Market for Everyone

• Cons Needs a Firm Commitment Requires Intense Follow-up (Bureaucracy)

• Pros Easy to Build Relationships Partnership with Representatives (Let your rep do the work)

But you cannot afford to ignore it.

• Large consumption of Manufacturing Technology Equipment

• Most of your major customers in the US and elsewhere have plants in Brazil

• A place where you can still keep your market share

FEIMAFE SHOWParque Anhembi – São Paulo

May 21 – 27, 2007

An effective marketing tool

Business Outlook, Opportunities and Resources for Doing Business in Mexico

---------------------------Carlos Mortera

General ManagerAMT Mexico Office & Technology Center

A Member’s Perspective of the Mexican Market---------------------------

Russ LauerVice President

Acro Automation

Extending Credit to Your Customers in Mexico---------------------------

John Keevan-LynchPresident

Provident Traders, Inc.

Q & A