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Brazilian Embraer Sells 30 New Jets to US Market

Embraer announced that it has reached an agreement for the sale of 30 firm Embraer 175 aircraft to Republic Airlines Inc. This brings to 78 firm and 75 options the total number of E-Jets on order for Republic.

These aircraft were originally options under the amended and reinstated Embraer / US Airways purchase agreement. With the consent of Embraer, US Airways has transferred to Republic its right to purchase these aircraft.

Today’s announcement does not affect the 25 firm Embraer 190 aircraft and the 32 additional Embraer 190s, subject to reconfirmation, in US Airways’ order book.

"We are very pleased to further contribute to Republic Airlines’ continuous success," said Frederico Fleury Curado, Embraer Executive Vice-President, Airline Market.

"Furthermore, the introduction of another member of the E-Jets family, the Embraer 175, into the U.S. domestic market, represents an important validation of our strategy of providing airlines with flexibility to match demand with the right aircraft size."

"We are very pleased to expand our relationship with US Airways with the addition of these 30 Embraer 175 regional jets," said Bryan Bedford, Chairman, President and Chief Executive Officer of Republic Airways Holdings.

"Our company has an excellent tradition of delivering safe, reliable and cost effective service to our customers and partners. We are especially excited to introduce the new 86-seat Embraer 175 regional aircraft to the U.S. marketplace.

"The Embraer E-Jets family continues to set high standards for airline service in North America.  Passengers love this aircraft for its spacious interior design and in particular the absence of a middle seat."

Deliveries of the Embraer 175’s – all in 86-seat single class configuration and to fly in US Airways Express colors – are expected to start in 2007 and continue through 2008.

There are over 160 E-Jets operating worldwide, and as of June 30, 2006, the E-Jets had logged 455 firm orders and 442 options.

Embraer is among Brazil’s leading exporting companies. As of June 30, 2006, Embraer had a total workforce of 17,538 people, and its firm order backlog totaled US$ 10.2 billion.

Empresa Brasileira de Aeronáutica S.A. – www.embraer.com.br

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