Air France/KLM Places Order for 20 Embraer 170/190 Jets

Released on Friday, August 03, 2007

S�o José dos Campos, August 3, 2007 � Embraer and Air France/KLM group today signed a contract for 20 E-Jets, consisting of four EMBRAER 190 and six EMBRAER 170 jets for Régional, an Air France subsidiary, and ten EMBRAER 190s for KLM cityhopper. The deal also includes options for another three EMBRAER 190 and six EMBRAER 170 jets for Régional/Air France and nine more EMBRAER 190s for KLM cityhopper.

The contract value of the E-Jets firm orders is US$ 657 million, at list price, based on January 2007 economic conditions, and could reach US$ 1.245 billion, if all options are exercised. The first aircraft will be delivered in November 2008 to KLM cityhopper. Both Régional/Air France and KLM cityhopper EMBRAER 190 jets will be configured in a single class layout, seating up to 100 passengers comfortably. Régional/Air France's EMBRAER 170s will be seating up to 76 passengers in a single class layout.

Régional/Air France has already three EMBRAER 190s in operation and will receive its first EMBRAER 170 in August 2008. The airline is the largest operator of Embraer jets in Europe, with a fleet of 39 aircraft (three EMBRAER 190s, 27 ERJ 145s and nine ERJ 135s), and also operates nine EMB 120 Brasilia.

"This joint order is the first from the Air France/KLM group and we are especially proud that it goes to the E-Jets family," said Mauro Kern, Embraer Executive Vice President, Airline Market. "To be selected by these world-class airlines will further enhance the competitive positioning of our E-Jets. We have two main reasons to celebrate today's deal: one is the confidence reinstated by our distinguished and loyal customer, Régional/Air France and the other is the welcoming of an important new member into the quickly-expanding E-Jets operators family, KLM cityhopper."

The Air France/KLM group E-Jets will initiate the process of replacing the Fokker 100 in Régional/Air France and KLM cityhopper to enhance the existing network and to permit the development of new routes.

"We have had the pleasure to receive our first EMBRAER 190 in November 2006 and, since then, this aircraft has successfully lived up to our expectations," said Jean-Yves Grosse, Régional/Air France President and CEO. "The new EMBRAER 170, which will soon be joining our fleet, will give us even more flexibility in operation, while offering the same level of comfort to our passengers as the EMBRAER 190."

"The EMBRAER 190 was selected after a detailed analysis to find a suitable replacement for our oldest Fokker 100. The EMBRAER 190 will allow KLM to offer improved comfort and performance, whilst reducing emissions and considerably improving the environmental impact of our fleet," said Michel Coumans, KLM cityhopper Managing Director. "We really look forward to welcoming the E-Jet into our European network."