BRA Transportes Aereos Places Order for 20 Embraer 195 Jets

Released on Wednesday, June 20, 2007

S�o José dos Campos, June 20, 2007 � Embraer and Brazilian airline BRA Transportes Aéreos have signed a preliminary commercial agreement for 20 firm orders of the EMBRAER 195 jet, plus 20 options. The final contract for this transaction should be finalized, shortly, by both companies. The value of the deal, at list price, is US$ 730 million, based on January 2007 economic conditions (not including optional equipment ordered by BRA), and could reach US$ 1.46 billion, if all the options are confirmed.

The new BRA EMBRAER 195 E-Jets will be configured with 118 single-class seats, with deliveries scheduled to start in the second semester of 2008. With the announcement of today, at the Paris Air Show, BRA will be the first Brazilian airline to operate the modern Embraer E-Jets in Brazil.

BRA has also signed a leasing contract with GE Commercial Aviation Services (GECAS) to operate two other brand new EMBRAER 195 jets. First delivery of the leased E-Jets will occur in the first semester of 2008.

"We are honored by BRA's decision to select the EMBRAER 195 and pleased that this world class product will be serving Brazilian passengers," said Frederico Fleury Curado, Embraer's President and CEO. "The EMBRAER 195 has range of up to 2,200 nautical miles (4,077 kilometers) nonstop, which will allow BRA to operate the airplane on Brazil's main domestic routes, as well as to reach several destinations in South America."

BRA selected the E-Jets family, because only its models are capable of linking more than 50% of the air destinations in Brazil today, with nonstop flights. The decision was confirmed in December 2006, after the entrance of the company's new investor, Brazil Air Partners (BAP) Fund, consisting of Bank of America, Darby, Development Capital, Gavea Investment Fund, Goldman Sachs & Co., HBK Investment, and Millennium Americas. BRA's objective is to become a strong third-largest airline in Brazil, based on their new E-Jets platform.

"BRA is proud to be the first Brazilian airline to operate Embraer's E-Jets," said Humberto Folegatti, President and CEO of BRA. "We are investing in expanding our fleet, in order to meet the growing demand and, for that reason, we chose the EMBRAER 195 to offer our passengers the comfort, punctuality and economy they appreciate and deserve."