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Embraer announced today that the Harbin Embraer Aircraft Industry Company Limited, the joint venture established between Embraer, Harbin Aviation Industry (Group) Co., Ltd. and Hafei Aviation Industry Co., Ltd. - companies controlled by China Aviation Industry Corporation II - delivered the first two ERJ 145 jets to China Southern Airlines. The Chinese customer ordered a total of six ERJ 145s in February 2004, with deliveries scheduled to continue through January 2005.

Since 2000, Sichuan Airlines, which is now partially controlled by China Southern Airlines through a shareholding arrangement, has been operating five ERJ 145 airplanes in the country.

Today we are very pleased to gather here to attend this delivery ceremony of these new ERJ 145 regional jets, said Mr. Hao Jianhua, Vice President for China Southern Airlines.

The launching of this new ERJ 145 further enriches China Southern's aircraft fleet and satisfies our demand for different aircraft capacity. Currently, the operation of the ERJ 145 on domestic routes is still in an initial stage, said Mr. Hao. He added: As China Southern's operating route structure continues to expand and the civil aviation market further develops, ERJ 145 aircraft will provide our passengers with broader and more options for air transportation services. We are confident that this co-operation will create a promising future for both Embraer and China Southern.

We are pleased and honored with the delivery of the first two ERJ 145s produced by Harbin Embraer Aircraft Industry to its launch customer China Southern Airlines. This is another important milestone in Embraer's long-term strategy and commitment towards the Chinese market, said Frederico Fleury Curado, Embraer Executive Vice-President ¨C Civil Aircraft. We are certain that China Southern's business will greatly benefit from this aircraft, which has enjoyed great success worldwide. With more than 800 units in operation, we strongly believe that the ERJ 145 will fit in well with its existing fleet and route structure, providing the same good services which made this aircraft one of the most successful programs in the world's aeronautical industry.

Embraer signed an agreement in December 2002 to establish a production unit in China. This marked Embraer's first industrial initiative outside Brazil to manufacture its renowned ERJ 145 family aircraft. The new company, Harbin Embraer Aircraft Industry Company Ltd., is based in Harbin, capital of Heilongjiang province, and is specialized in manufacturing the top selling 30-50 seat ERJ 145 regional jet series products.