Embraer and Republic Sign an Agreement for Nearly $1 Bn

• The biggest E-Jets customer chooses to increase its fleet with another 24 EMBRAER 190s

(Sao Jose dos Campos, July 21, 2010) -- Embraer and Republic Airlines, the largest E-Jets operator in the world, signed a Letter of Intent (LOI) for the sale of 24 EMBRAER 190 jets, today, at the 47th Farnborough International Airshow, in England. Thetotal value of the agreement, at list price, is US$ 960 million, based on January 2010 economic conditions.

"It is a great honor to announce this new agreement for additional EMBRAER 190 jets. We have a long and successful partnership with Republic Airlines. They already operate all three models of our ERJ 145 jets family, as well as the EMBRAER 170, EMBRAER 175 and EMBRAER 190," said Paulo Cesar de Souza e Silva, Embraer Executive Vice President, Airline Market. "This is further proof of the flexibility and convenience the E-Jets bring to airlines. The four aircraft models share more than 86% commonality, which means reduced training and maintenance costs, while keeping the same comfortable cabin and modern systems."

The Company's relationship with Republic dates back to 1999, when Chautauqua Airlines, also a subsidiary of Republic Airways Holdings, took delivery of its first ERJ 145 for the US Airways Express operation. Chautauqua Airlines currently operates the three models of the ERJ 145 family - the ERJ 135, the ERJ 140 and the ERJ 145 - totaling 78 aircraft, under the colors of American Connection, Continental Express, Delta Connection, Frontier Airlines, Midwest Airlines, and US Airways Express. Republic Airways Holdings, which owns six airlines, operates a total number of 223 Embraer jets.

"It is my distinct pleasure to announce a further expansion of our partnership with Embraer," said Bryan Bedford, CEO of Republic Airways Holdings. "This new agreement confirms our commitment to the E-Jet family. We chose them again because passenger comfort, mission performance, especially in hot and high markets like Denver (DEN), and compelling economics are hallmarks of the E-Jets product line. We will start to take delivery of six EMBRAER 190 jets in mid 2011 and we also have flexibility through conversion rights to the EMBRAER 195 in a 116 seat single class configuration with our stretch seating interior."

Source : Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ)