Embraer and Flybe Sign Order for Up to Us$ 5.0 Bn

British airline could add up to 140 EMBRAER 175s to its fleet of 14 EMBRAER 195 jets

(Sao Jose dos Campos, July 20, 2010) -- Embraer and Flybe, one of Europe's leading low-cost and regional airlines, signed a contract for the sale of 35 EMBRAER 175 jets, today, at the 47th Farnborough International Airshow, in England. The deal includes 65 options and 40 purchase rights, giving the order a potential for 140 EMBRAER 175s. The total value of the contract, at list price, is US$ 1.3 billion, based on January 2010 economic conditions, and could reach US$ 5.0 billion, if all options and purchase rights are exercised.

"Flybe's decision to select the EMBRAER 175 to complement its existing fleet of 14 EMBRAER 195s is great news, indeed, and we are very thankful for this further sign of confidence in our E-Jets family," states Frederico Fleury Curado, Embraer President & CEO. "I am sure that this new fleet strategy will give Flybe an even greater profile in the leadership role they play, today."

The British airline's EMBRAER 175 jets will be configured in a single-class layout, seating up to 88 passengers with comfortable, 30-inch pitch (76 cm) Elite seats. The first aircraft is scheduled for delivery in the second half of 2011.

"We have enjoyed an excellent relationship with Embraer, since we became the world's launch customer for the EMBRAER 195, a superb addition to our fleet with outstanding reliability and performance," says Jim French, Flybe Chairman and Chief Executive Officer (CEO). "The EMBRAER 175 will give us significant added capacity and is particularly suited to the sector lengths prevalent in Europe that we are most interested in exploiting. In short, it perfectly fits Flybe's business model. We are delighted to extend the long-running partnership with Embraer. With this order, we are securing an aircraft that fits the stated aim of furthering our position as the leading regional airline in Europe."

Source : Embraer - Empresa Brasileira de Aeronautica S.A. (NYSE: ERJ) - click here for more information