Embraer Announces Discussions on Partnering With Colombia in KC-390 Program

• Colombian government manifests its intention to acquire 12 military transport jets from Embraer

(Sao Jose dos Campos, September 1, 2010) -- Embraer participated in a ceremony, today, in Brasilia, for signing a Declaration of Intent by the Ministers of Defense of Brazil and Colombia, for Brazil's neighboring country to take part in the development program and in the production of the KC-390 military transport jet. This is the first step toward bilateral negotiations that will establish the terms and conditions of Colombia's participation in the program, and which could result in setting up a factory for machined parts in that country, in order to serve the aviation market, as well as in the purchase of 12 KC-390 airplanes by the Colombian government.

"Colombia was the launch customer of the Super Tucano on the international market, and we are very honored to see the country lining up with our Company, once again, this time as part of the ambitious KC-390 program," said Orlando Jose Ferreira Neto, Embraer Executive Vice President, Defense Market. "The development of an aeronautics hub in Colombia will strengthen even more the cooperation between the technological and industrial defense bases of both nations."

The relationship between Embraer and the Colombian Air Force (FAC) dates back approximately 20 years. The FAC has operated 14 Tucano planes, since 1992, which are used to train pilots, as well as two EMB 110 Bandeirante aircraft to transport personnel. Added to these aircraft is a fleet of 25 Super Tucano training and light attack turboprops. In the commercial aviation segment, Colombia's state-run SATENA (Servicio Aereo a Territorios Nacionales) airline flies five ERJ 145 and two EMBRAER 170 jets, with 50 and 76 seats, respectively, serving 43 destinations throughout the country.

"By beginning these conversations for setting forth Colombia's participation in the development of the KC-390 airplane, and actually being part of the program itself, we are taking big steps to significantly speed up the development of the country's aeronautics industry, through the Colombian Aeronautics Industry Corporation (CIAC), not only because we will increment our engineering capacities, but because we are very proud to join this project with Embraer," said the Air Marshal Flavio Ulloa, Colombian Air Force Chief of Logistical Operations. "With Embraer's more than 40 years of experience in developing airplanes, and the experience of the Colombian Air Force in the operational area, we will be able to work together to make the KC-390 one of the most modern and versatile aircraft for handling different types of missions, whether military or commercial, and we thank Embraer for allowing us to be a part of this project."

Colombia thus joins Chile, which also signed a Declaration of Intent for participating in the military jet transport program. All together, the purchase intents of the Colombian, Chilean and Brazilian air forces total 46 KC-390 aircraft, 28 of which by the FAB, 12 by the FAC, and another six by the Chilean Air Force (FACH).

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