Embraer - Empresa Brasileira De Aeronautica S.A.

Fri. September 26, 2008; Posted: 09:04 PM

Embraer (NYSE: ERJ | Quote | Chart | News | PowerRating) reinforces that its hedge policy does not have any speculative component and that the derivative instruments in place are exclusively held to protect its operations against a potential loss arising from adverse changes in interest and foreign currency exchange rates.

Therefore, the protection instruments currently held by the Company are only NDFs (Non Deliverable Forwards) and plain vanilla interest rate swaps, without any leverage component.

In addition, Embraer informs that it does not have any dual indexation contract or target forward transactions, and that the volumes in place are within the limits outlined in the Company's risk management policy.

Antonio Luiz Pizarro Manso

Executive Vice-President & CFO

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

SOURCE EMBRAER-EMPRESA BRASILEIRA DEAERONAUTICA

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