EMBRAER MARKET OUTLOOK 2012-2031 PROJECTS 6,800 NEW JET DELIVERIES OF 30 TO 120-SEAT SEGMENT

São José dos Campos, Brazil, July 9, 2012 – Embraer foresees that world air transport demand (measured by Revenue Passenger Kilometer RPK) will increase 5.0% annually and will require 6,795 new jet deliveries in the 30 to 120-seat capacity segment (USD 315 billion at list prices) over the next 20 years. Replacement of ageing aircraft will represent 53% of new deliveries and 47% will be added to support market demand growth. The world fleet in service of 30 to 120-seat jets will increase from 4,150 aircraft in 2011 to 7,375 by 2031.

The center of gravity for aviation will move eastward, most notably to Asia and, to some extent, southward to Latin America. By 2031, Asia Pacific and China will be the largest markets in the world, accounting for 34% of world RPKs. Europe and North America will follow at 21% of RPKs each.

The main drivers impacting the global air transport industry are the strong pace of economic growth in emerging markets, rise of an urban middle class, small and mid-sized cities economic growth, fuel prices, escalation of environmental concerns, increased airline competition and continuous search for business efficiency.

Middle East will be the fastest-growing market with an annual RPK growth rate of 7.2% in the next 20 years, followed by China and Latin America both with 7.0%, Asia Pacific 5.8%,

the CIS (Commonwealth of Independent States) 5.6% and Africa 5.3%. Developed economies will grow less due to their market maturity, North America with 3.2% and Europe with 4.1%.

The 61 to 120-seat jet segment, where the E-Jets family is the leader, allows airlines to maximize operational efficiency and profitability through better competitive positioning. This segment represents a significant part of today’s short and medium haul aviation network. The E-Jets have been providing much-needed flexibility to airlines by right-sizing (complementing or replacing) larger jets, replacing ageing aircraft in similar seat category, developing new markets, and expanding from smaller regional jets.

The 30 to 60-seat capacity segment has been impacted by high fuel prices and a weak revenue environment, mainly in North America, where some 70% of 50-seat jets are in service. However, this category will continue to link low-mid density markets to hubs and to help develop the much needed regional aviation in emerging countries.