SAO JOSE DOS CAMPOS, Brazil, July 28 /PRNewswire-FirstCall/ -- In a ceremony held today in Lisbon, Embraer announced plans for implementing two new industrial units dedicated to manufacturing complex airframe structures, one focused on metallic assemblies and the other on composites, both of which will be located in the city of Evora, Portugal.

The event was attended by the Prime Minister of Portugal, Jose Socrates Carvalho Pinto de Souza; the President of Brazil, Luiz Inacio Lula da Silva; Embraer's President & CEO, Frederico Fleury Curad;, as well as government and press officials from both countries.

"We are pleased to announce new investments in Portugal, which represent another important strategic step towards improving Embraer's productivity and competitiveness, whilst also supporting the Company's growth and its global presence," said Frederico Fleury Curado, Embraer President & CEO. "We firmly believe that these technological state-of-the-art operations will represent an important contribution to the region of Evora, as well as to Portugal and to the European Union, one of our largest and most important markets, both for our supplies and aircraft sales and services."

The selection of the city of Evora resulted from a careful evaluation of several factors, including potential access to qualified labor, logistical infrastructure and the existence of a technological center dedicated to aeronautics, as set forth in the municipal master plan.

The new factories will be highly automated and use state-of-the-art manufacturing processes, in accordance with the Company's lean manufacturing initiatives. They will represent an estimated investment of euro 100 million (metallic) and euro 48 million (composites) over the next six years, according to their respective implementation schedules. These investment amounts were already considered in Embraer's long term planning and do not alter any of its economical and financial guidances.

This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer's businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where Embraer does business; expectations on industry trends; the Company's investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words "believe," "may," "is able," "will be able," "intend," "continue", "anticipate", "expect" and other similar terms are supposed to identify potentialities. Embraer does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Embraer expectations.

Headquarters (Brazil) Rosana Dias rosana.dias@embraer.com.br Cell: +55 12 9724 4929 Tel.: +55 12 3927 1311 Fax: +55 12 3927 2411 North America Christine Manna cmanna@embraer.com Cell: +1 954 383 9950 Tel.: +1 954 359 3879 Fax: +1 954 359 4755 Europe, Middle East and Africa Stephane Guilbaud sguilbaud@embraer.fr Cell: +33 6 7522 8519 Tel.: +33 1 4938 4455 Fax: +33 1 4938 4456 China Tracy Chen tracy.chen@bjs.embraer.com Cell: +86 139 1018 2281 Tel.: +86 10 6598 9988 Fax: +86 10 6598 9986

Web site: http://www.embraer.com.br/