1) Embraer reported record sales and earnings for 2000, with net income up 57% over 1999. Sales reached $2.8 billion for 178 aircraft delivered. 2) The order backlog increased 36% to a record $24.1 billion, consisting of $11.4 billion in firm orders and $12.6 billion in options. 3) Net income for 4Q 2000 was R$246.6 million, up 9.1% from 4Q 1999, as a result of a 59.9% increase in net sales driven by higher aircraft deliveries.

1. 4th QUARTER - 2000
Earnings Release
Unless otherwise indicated, the company's operational and financial information is based on
consolidated figures in Brazilian reais according to corporate law accounting method. The
amounts expressed in US dollars were obtained using an average rate (R$ 1.9295 for the 4th
quarter of 2000 and R$ 1.8295 for the year ended December 31, 2000), or the final commercial
dollar rate for the corresponding periods (R$ 1.8437 for September and R$ 1.9554 for
December 2000), depending on whether they refer to the income statement or the balance sheet
data, respectively.
Embraer - Empresa Brasileira de Aeronáutica S/A (BOVESPA: EMBR3, EMBR4) (NYSE:
ERJ), the fourth largest commercial aircraft manufacturer in the world and largest Brazilian
exporter, ended the year 2000 with an order backlog of US$ 24.1 billion, consisting of US$ 11.4
billion in firm orders and US$ 12.6 billion in options. Net income for 2000 was R$ 645.2
million, 57% higher than net income for 1999.
Highlights of the 4th Quarter:
• Accumulated sales for the year 2000 - US$ 2,8 billion, with 178 aircraft delivered – is a
record in the history of Embraer.
• Embraer’s total annual backlog increased by 36%. Embraer closed the year 2000 with
an order backlog of US$ 24.1 billion, consisting of US$ 11.4 billion in firm orders and
US$ 12.6 million in options. Whilst in December 1999, the order backlog was US$ 17.7
billion, consisting of US$ 6.4 billion in firm orders and US$ 11.3 billion in options.
• On October 26, 2000, Embraer won the tender to supply four aircraft to the Belgian
Ministry of Defense, two ERJ 135 and two ERJ 145.
• On November 17, 2000, Embraer received the Outstanding Foreign Trade award in the
Exporter category for the second consecutive time, awarded by the Foreign Trade
Department of the Ministry of Development, Industry and Foreign Trade, in partnership
with the Brazilian Foreign Trade Association.
• To ensure a wider world coverage, a new Embraer sales office was inaugurated in
Singapore on December 6, 2000.
• On December 14, 2000, Embraer closed the sale of 70 ERJ 135 (37 seat) regional jet
aircraft, comprising 30 firm orders and 40 options for the company SA Airlink, from
South Africa.
• On December 21, 2000, Embraer laid the cornerstone of the Gavião Peixoto industrial
complex.
• Embraer will carry out a complete modernization of the Brazilian Air Force F-5E/F
fighters. On December 30, 2000 the Federal Senate approved funding for the program,
budgeted at US$ 285 million.
1

2. Economic and Financial Performance
The following table sets forth a comparative analysis of the principal economic and financial
indicators for the same periods of 1999 and 2000.
Statement of Income
4th Quarter December 31,
Data 1999 2000 1999 2000
In millions, except for % and per share data
R$ R$ US$ R$ R$ US$
Total net sales 931.7 1,489.7 772.1 3,347.5 5,099.3 2,787.3
Gross profit 247.1 474.2 245.7 956.2 1,588.4 868.2
Gross Margin (%) 26.5% 31.8% 31.8% 28.6% 31.1% 31.1%
Operating Expenses 91.3 168.4 87.2 331.2 561.8 307.1
Profit-sharing 25.6 41.0 21.3 36.6 80.5 44.0
Operating Income 130.2 264.8 137.2 588.4 946.1 517.1
Operating Margin (%) 14.0% 17.8% 17.8% 17.6% 18.6% 18.6%
Minority Interests - (2.9) (1.5) - (5.3) (2.9)
Depreciation &
Amortization 24.6 42.4 22.0 127.5 150.2 82.1
EBITDA 154.8 304.3 157.7 715.9 1,091.0 596.3
EBITDA Margin (%) 16.6% 20.4% 20.4% 21.4% 21.4% 21.4%
Net Income 226.3 246.6 127.8 412.2 645.2 352.7
Number of shares at end of period 481,217,874 543,409,874 543,409,874 481,217,874 543,409,874 543,409,874
Earnings per Share 0.47035 0.45372 0.23518 0.85648 1.18728 0.64905
Earnings per ADS(*) 1.88141 1.81490 0.94073 3.42591 4.74912 2.59620
(*) Each ADS represents 4 preferred shares
Net sales increased 59.9%, from R$931.7 million for the 4th quarter of 1999 to R$ 1,489.7
million for the 4th quarter of 2000. This increase is a result of the increase in the rhythm of
production that enabled Embraer to deliver 44 aircraft of the ERJ 145/135 family – 30 ERJ 145
and 14 ERJ 135 (two of which for the corporate aviation market). During the same period of
1999, 28 aircraft of this family were delivered – 20 ERJ 145 and 8 ERJ 135.
Deliveries 4th Quarter December 31,
by Market 1999 2000 1999 2000
In Aircraft
Commercial
ERJ 135 8 12 16 45
ERJ 145 20 30 80 112
EMB 120 0 0 7 0
Corporate
ERJ 135 0 2 0 2
Defense
ERJ 135 0 0 0 1
AMX 3 1
------------- ------------- ------------- -------------
TOTAL 28 44 106 161
======== ======== ======== ========
2

3. Therefore, accrued net revenues at the end of 2000 reached R$ 5,099.3 million, a 52.3%
increase from R$ 3,347.5 million at the end of 1999. In 2000 Embraer delivered 160 jets of the
ERJ 145/135 family, compared to deliveries of 96 jets of the same family in 1999.
In addition to aircraft deliveries, the composition of Embraer’s net sales includes the sales of
spare parts and rendering of services carried out by Embraer and its subsidiaries in Brazil and
abroad and light aircraft manufactured by Neiva.
Net sales per Segment 4th Quarter of
In millions 1999 2000
R$ % R$ US$ %
Regional Market 809.4 86.9 1,289.5 668.4 86.6
Defense Market 46.6 5.0 38.4 19.9 2.5
Corporate Market - - 51.8 26.8 3.5
Parts, services and others 75.7 8.1 110.0 57.0 7.4
Total 931.7 100.0 1,489.7 772.1 100.0
The increase in the rhythm of aircraft production also enabled an increase of 45,3% in the sale
of spare parts, services and others, from R$ 75.7 million in the 4th quarter of 1999 to R$ 110,0
million in the 4th quarter of 2000.
The 17.6% decrease in net sales from the defense market, from R$46.6 million for the 4th
quarter of 1999 to R$38.4 million for the same period of 2000 was principally due to the fact
that the contracts for the AM-X are in their final phases and some contracts related to tenders
already won by Embraer have not yet been executed.
With the first two aircraft deliveries to the corporate aviation market, Embraer marked the
beginning of its operations in this segment, which represented 3.5% of total revenues in the 4th
quarter of 2000.
As a result of productivity gains and investments made, Embraer’s gross margin increased 5.3%,
from 26.5% in the 4th quarter of 1999 to 31.8% in the 4th quarter of 2000.
In the accumulated figures for 2000, the gross margin increased by 2.5%. At the end of 2000
Embraer achieved a gross margin of 31.1%, compared to 28.6% at the end of 1999.
In the 4th quarter of 2000, operating expenses (administrative, sales and others) totaled R$ 169.4
million, an increase of 84.4% compared to the 4th quarter of 1999. Expressed as a percentage of
net sales, these expenses represented 9.8% and 11.3% in the 4th quarters of 1999 and 2000,
respectively. In the quarter ended December 31, 2000, non-recurring sales expenses were
approximately R$ 43.0 million, equivalent to 2.9% of net sales for the period. These expenses
are related to customer support, pilot and crew training, technical assistance and other
improvements of the Embraer products, aimed at bringing new clients into operation and at
improving the operational performance of Embraer products. Excluding these factors, operating
expenses were in line with the adjustments necessary to attend the increasing presence of
Embraer in its various markets.
Based on the Variable Remuneration Program, the employees’ profit share is established in
accordance with the performance appraisal of each employee/team, and linked to income returns
on operations and the distribution of dividends to Embraer shareholders. Since the targets were
achieved in the 4th quarter of 2000, R$ 41.0 million was provisioned for profit-sharing, which
added to the amount distributed in the first half of this year, totals R$ 80.5 million.
Therefore, Embraer’s operating profit, including employee profit-sharing, increased 103.4%,
from R$130.1 million in the 4th quarter of 1999 to R$ 264.8 million in the 4th quarter of 2000.
The operating margin for the corresponding period increased 3.8%, from 14.0% in the 4th
quarter of 1999 to 17.8% at the end of the 4th quarter of 2000. At the end of the 2000 financial
year, operating income totaled R$ 946.1 million and the operating margin was 18.6%.
3

4. Operational cash flow generation measured by the EBITDA - Earnings before interest, taxes,
depreciation and amortization, reached R$ 304.3 million in the 4th quarter of 2000,
corresponding to an increase of 96.6% against the same period of 1999. Similarly, the EBITDA
for 2000 increased by 52.4%, from R$ 715.9 million in 1999 to R$ 1,091.0 million at the end of
2000.
In the 4th quarter of 2000 Embraer had net income of R$ 246.6 million, an increase of 8.9%
compared with the net income for the 4th quarter of 1999.
There was a recognition of tax credits amounting to R$ 162.9 million in 1999 and R$ 67.3
million in 2000.
As a result, Embraer’s performance during the year ended December 31, 2000 enabled a record
net income of R$ 645.2 million to be generated, corresponding to 12.7% of net sales,
representing a 56.5% increase from the net income obtained in 1999.
Quarterly Results
1Q00 2Q00 3Q00 4Q00
In Millions of R$
Net sales 1,032.5 1,187.4 1,389.7 1,489.7
Gross profit 300.4 343.0 470.8 474.2
Operating profit 176.0 185.1 320.2 264.8
Net income 97.5 112.9 188.2 246.6
Financial Management
Balance Sheet Data and Other September 30, December 31,
Information 2000 2000
In millions
R$ US$ R$ US$
Cash & cash equivalents 1,104.7 599.2 2,325.6 1,189.3
Total bank indebtedness 905.1 490.9 894.2 457.3
Net cash (Indebtedness) 199.6 108.3 1,431.4 732.0
Shareholders' equity 1,424.7 772.7 1,538.7 786.6
Embraer closed the 2000 financial year with R$ 2,325.6 million in cash and total bank
indebtedness of R$ 894.2 million. Of the total indebtedness on December 31, 2000, 80% refers
to short-term financing and 20% to long-term financing.
Therefore, at the end of the year ended December 31, 2000, the company had a net cash position
of R$ 1,431.4 million. The increase in the net cash position during 2000 is a result of the
following factors:
(i) In the 2nd quarter of 2000, Embraer received R$ 277.0 million in contributions
from risk partners for the development of the new ERJ 170/190 jet family.
(ii) In July 2000, the Embraer Global Share Offering was concluded, with the receipt of
R$ 439.8 million, equivalent to US$ 244.2 million.
(iii) Between October and November 2000, financing for a customer was finalized
amounting to R$ 1,156.7 millions, and during this period Embraer received the
funds for the corresponding sales of aircraft, which as of September 30, 2000 were
posted as short-term receivables.
These funds will provide the necessary tranquility for Embraer to make the new investments
required; presently those related to developing the new ERJ 170/190 family of regional jets.
4

5. Adjustment of the company's capital structure to its funding needs has resulted in a reduction in
borrowing costs. At the end of December 2000, the average borrowing costs, after eliminating
exchange variations, was Libor + 1.48%.
Investments in R&D and Productivity
In 2000 Embraer invested R$ 234.7 million in the support and improvement of its products, as
well as in the development of new products. Included in this amount are R$ 58.8 million related
to the development of defense product, which are generally covered by specific contracts.
Investments in productivity totaled R$ 154.7 million during the 2000 financial year, such
investments being made in buildings and installations, information technology equipment and
software, machinery and equipment, and improvement projects for industrial and administrative
processes. These investments resulted in significant productivity gains, as shown in the
following table.
Investments December December
R$ million 1999 2000
Research & Development 151.4 234.7
Productivity 111.9 154.7
Total 263.3 389.4
Selected information - US GAAP
Information according to US GAAP will be made available by April 19, 2001.
New Orders and Backlog
Over time Embraer has sought to increase market share in the segments where it operates,
offering quality products with low operating costs for commercial, corporate and defense
aviation, plus the customer service market.
In the 31 to 60 seat segment, through the ERJ 145 family, Embraer has achieved a market share
of approximately 49%, considering all sales made, making the company the leader in the
segment. In the larger size segments, the market share figures achieved were 19% for the 61 to
90 seat segment, represented by the ERJ 170, and 5% for the 91 to 120 seat segment,
represented by the ERJ 190. Embraer’s customer base for jet aircraft now comprises 30 airlines
located in 20 countries.
• Commercial Aviation Market
The ERJ 145 is a twin-engined regional jet with capacity to carry up to 50 passengers, which
has been attending to the increasing demand from regional airlines for an economic aircraft
offering speed and comfort.
Embraer reached a total of 865 ERJ 145 regional jet aircraft sold in December 2000, comprising
549 firm orders and 316 purchase options, including 288 aircraft already delivered up to
December 2000, which are operating with 22 airlines in 16 different countries.
In July 2000, during Embraer's participation in the Farnborough Air Show in the United
Kingdom, development of the ERJ 145 XR was announced, which is an extra long-range
5

6. version of the ERJ 145 with 50 seats. This new aircraft will have a range of around 2,000
nautical miles (3,700 km) and its maiden flight is planned for the second quarter of 2001. Initial
deliveries are planned for one year later. On the same day during the Farnborough Air Show,
Embraer announced an order for 175 jets of this version by Continental Express, consisting of
75 firm orders and 100 options.
The ERJ 135 is a 37-seat regional jet using the same platform as the ERJ 145, manufactured on
the same assembly line as the ERJ 145. The ERJ 135 has 96% of equipment commonality in
relation to parts and components of the ERJ 145, enabling the same ground support equipment
to be used by customers using both types of aircraft, and also the same pilot certification and
standardized maintenance procedures.
In December 2000, Embraer reached a total of 207 ERJ 135 regional jet aircraft sold,
comprising 146 firm orders and 61 purchase options, including the 61 aircraft already delivered
up to such date. In September 2000, American Eagle exercised part of its ERJ 135 options,
converting them into ERJ 140 models.
The ERJ 140 is a 44-seat regional jet launched on November 30, 1999, to offer our customers
greater flexibility of aircraft selection. Developed from the ERJ 135 project, the new ERJ 140
will also be part of the ERJ 135/145 regional jet family, with 96% commonality of parts and
components used by the family, providing our customers with significant operational and
maintenance benefits.
The ERJ 140 development program is strictly on schedule and the aircraft made its maiden
flight in June 2000. Initial deliveries are planned for the second half of 2001.
American Eagle was the first company to select the ERJ 140 jet for its fleet. Amongst new
orders and conversions of RJ 135 options, 164 aircraft have been ordered, consisting of 133 firm
orders and 31 options.
The ERJ 170 and ERJ 190 make up the new Embraer regional jet family. The ERJ 170 will be
a regional jet for 70 passengers. The ERJ 190 will include two regional jets, the ERJ 190-100
for 98 passengers and the ERJ 190-200 for 108 passengers. Development of this new family of
regional jets continues strictly on schedule. During the first four months of 2000, joint
definition activities were completed with partners at the Embraer offices in São José dos
Campos. As of April, with the majority of technicians and engineers returning to their bases,
design detailing, tool manufacture and the start of manufacture of long-cycle parts is underway.
The new jets will be equipped with General Electric engines, the CF 34-8 model for the ERJ
170 and the CF 34-10 for the ERJ 190-100 and ERJ 190-200, and they will use Primus EPIC
avionics from Honeywell. In addition to the companies mentioned, the following companies will
be risk sharing partners in the program: C&D Interiors (United States), Gamesa (Spain),
Hamilton Sundstrand (United States), Kawasaki (Japan), Latecoere (France), Liebherr
(Germany), Parker Hannifin (United States) and Sonaca (Belgium).
The first deliveries of the ERJ 170 are planned for December 2002, whilst deliveries of the ERJ
190-200 will begin in July of 2004. As of December 2000, the order backlog for the ERJ 170
and the ERJ 190 regional jets totaled 325 orders, consisting of 120 firm orders and 205 purchase
options.
Regional Aircraft Ordered during the Period:
Firm 4th Quarter December 31,
6

7. Orders 1999 2000 1999 2000
In aircraft
Regiona Marketl
ERJ 135/ERJ 140 1 40 7 149
ERJ 145 28 15 125 199
ERJ 170 0 0 40 50
ERJ 190-200 0 0 30 0
Total 29 55 202 398
Executive Market
ECJ 135 - Legacy 0 6 0 31
Total 29 61 202 429
The EMB 120 Brasília is a pressurized turboprop aircraft designed to carry up to 30 passengers.
Since its launching in 1985 up to the end of 2000, 354 aircraft have been delivered and are
operated by 30 airlines in 12 countries.
In its segment, the EMB 120 Brasília has a market share of 25% of the world turboprop aircraft
market. Currently, the EMB 120 Brasília is being built to order by our subsidiary Indústria
Aeronáutica Neiva, located in the town of Botucatu – SP.
As of December 31, 2000, the EMB 120 Brasília had 4 outstanding orders, consisting of two
firm orders and two purchase options.
• Defense Market
The EMB 145 AEW&C and EMB 145 RS are products developed based on a special version
of the ERJ 145, with an advanced early-warning control and alarm system, plus a remote
sensing capability. The advanced mission and radar system of the EMB 145 AEW&C,
developed by Ericson, is capable of performing patrol and air traffic control missions. The EMB
145 RS was designed to carry out remote sensing, environmental control and geological
research missions. The development and manufacturing program of the aircraft purchased by the
Brazilian government is on schedule, and two aircraft are already carrying out systems
integration and flight testing.
The Greek government, represented by the Hellenic Air Force, signed a contract with Embraer
to supply four EMB 145 AEW&C - Airborne Early Warning and Control aircraft to be used in
the complex advance warning and airspace control system within NATO. Under the same
contract, one ERJ 135 aircraft was also acquired for special transport and support. The
government of Mexico also selected Embraer to supply one EMB 145 AEW&C aircraft and a
further two aircraft for maritime patrol duties, to be operated by the National Defense
Department. These orders place the company in the restricted and sophisticated international
market for this type of aircraft.
The AM-X subsonic ground attack and close tactical support aircraft, developed under an
international cooperation agreement with Italian companies, sponsored by the Brazilian and
Italian governments, has 190 aircraft flying for both air forces.
The decision of the Venezuelan Government to acquire 8 advanced AMX-T ground attack
aircraft was confirmed. This is a redesigned version of the AM-X with latest generation
equipment.
The EMB-314 Super Tucano is a single-engined turboprop aircraft used for pilot training and
armed reconnaissance missions. 650 aircraft of the first version of the Tucano, the EMB 312,
were manufactured and are in operation with 15 air forces over the world. The EMB 314 Super
7

8. Tucano is now under development in the ALX -Light Attack Aircraft version, equipped with a
1600 SHP motor, advanced avionics and other technological advances in the single-seat and
two-seat versions. The AL-X is being developed under a contract with the Brazilian Air Forces,
which already placed an order of 99 aircraft, and is awaiting finalization of the funding contract
to become effective. A prototype is currently flying and taking part in a training campaign.
In December 2000, a contract was signed between the Brazilian Air Force and Embraer for
structural and electronic updating of 49 F-5 BR fighter aircraft in operation with the Air Force.
In October 2000, the Belgian Air Force signed a contract for the supply of two ERJ 135 and two
ERJ 145 jets, plus logistic support, for delivery commencing May 2001. These aircraft will be
used for the transport of military personnel and authorities.
• Corporate Aviation Market
The Legacy is an executive aircraft, developed based on the ERJ 135 regional jet platform. The
Legacy, which was officially launched on July 26, 2000 at the Farnborough Air Show in the
United Kingdom will be available in executive, corporate and authority transport versions.
During the official launching ceremony of the Legacy at Farnborough, the first contract, worth
approximately US$ 1 billion, was announced with Swift Aviation of the United States, which
acquired 50 aircraft of this type, comprising 25 firm orders and 25 options. In December 2000,
the Legacy order backlog totaled 62 aircraft, including 31 firm orders and 31 options. Two
aircraft have already been delivered.
• Customer Services Market
In furtherance of its business concept of making customer satisfaction the basis of the results
achieved, Embraer is focused on the customer support area, and other service provision
segments, seeking to expand its operating area and also to assure the confidence and loyalty of
customers, which as a result will certainly increase aircraft orders. A complex network of
services and after sales support to customers is available in South America, United States,
Europe, Australia, and more recently in Asia.
Through these operating units, the company has made available trained teams and the necessary
material resources within a priority project to ensure customers the maximum efficiency in
aircraft availability, whether for commercial, defense or corporate purposes.
To achieve these objectives, Embraer has also invested in the formation of decentralized
inventories placed at strategically defined locations, seeking to reduce customer service cycles.
Complementing this strategy, a program of spare parts shared by a group of operators has been
successfully offered to new customers.
Complementing the technical, logistics and operational support to aircraft made by the
company, Embraer offers aircraft maintenance services at its São José dos Campos facilities in
the state of São Paulo.
In addition to expanding the use of its Internet based support system, the CIS – Customer
Integrated System, Embraer has been finalizing its studies and analysis to implement an E-
Marketplace, which will integrate customers, suppliers and Embraer in an effective technical
assistance, parts and service supply network.
8

9. Investor Relations
In the fourth quarter of 2000, Embraer’s preferred stock appreciated 29.1%, reaching R$ 18.20
per share on December 28, 2000, with an average daily trading volume of R$ 4.3 million. The
common stock depreciated 2.1% during the same period, reaching R$ 12.35 per share. The
average daily trading volume of the common shares was R$ 3.3 million. During the same period,
the São Paulo stock exchange Ibovespa index fell 4.2%.
In the year 2000, Embraer’s preferred stock appreciated 123.3%, with an average daily trading
volume of R$ 4.0 million. The common stock appreciated 37.2% over the same period, with an
average daily trading volume of R$ 3.2 million. During the year, the Ibovespa index fell 10.7%.
In the fourth quarter of 2000, the ADSs appreciated 28.2% by December 29, 2000, closing the
year quoted at US$ 39.75, with an average daily trading volume of 178.8 thousand ADSs,
equivalent to a financial volume of US$ 5.4 million.
The price of the ADSs on the New York Stock Exchange since the initial trading on July 21,
2000, at the initial price of US$ 18.50, has appreciated 115.0%, with an average daily trading
volume of 279.0 thousand ADSs, equivalent to a financial volume of US$ 7.4 million.
Embraer’s common and preferred stock closed 2000 with participations in the Bovespa index of
1.80% and 1.33% respectively. On the international market, the ADSs were included in the
world MSCI – Morgan Stanley Composite Index, which is used by the largest world fund
managers.
In the year 2000, Embraer’s Board of Directos approved the distribution of interest on
shareholders' equity and half-yearly dividends totaling R$ 287.7 million, equivalent to a
distribution of 43.1% of net income for the period. The total amount approved during the year
represented an average dividend yield (total of dividends and interest on capital per share,
divided by the average quotation of the share during the year) to the shareholder of 2.61%.
Interest on Shareholders' Equity - ISE Total Distributed Per share in R$
and Dividends in 2000 In R$ thousand ON PN
ISE –1st Quarter 19,639 0.03820 0.04200
ISE –2nd Quarter 19,869 0.03864 0.04250
Dividend 1st Half-year 79,569 0.15473 0.17020
ISE –3rd Quarter 27,705 0.04831 0.05314
ISE – 4th Quarter 33,483 0.05839 0.06422
Dividend 2nd Half-year 107,470 0.18740 0.20613
Recent Events
On January 15, 2001, Embraer started operations at the new Eugênio de Melo Unit located in
the municipality of São José dos Campos, state of São Paulo. The property that previously
belonged to the company Engesa was acquired at an auction in September last year for R$ 10.5
million. At the new Eugênio de Melo Unit, comprising a lot of 340,000 m2 with a constructed
area of 50.000 m2, Embraer will carry out tool development and fabrication, tube fabrication,
welding and cutting, and large scale cabling activities (assembly of wiring looms). The
objective is to support the production at the Faria Lima plant, as part of the plan to achieve the
target of delivering 20 regional jets per month in 2001, against 16 jets per month in 2000.
On February 1, 2001, American Eagle confirmed the order of six out of 31 purchase options
placed in September 2000, and the company selected the 44-seat ERJ 140 regional jet,
becoming the first customer for the product. The total American Eagle order for the ERJ 140
now totals 139 firm orders and 25 options. Delivery of the six options will begin in August
2001.
9

10. On February 5, 2001, the airline British Midland from the UK exercised four purchase options
for two ERJ 135 regional jets (37 seats) and two ERJ 145 (50 seats). The aircraft will be
delivered over the period from January through April of 2002.
On March 1, 2001, Embraer signed a contract with the Mexican government for the sale of one
EMB 145 AEW&C aerial early-warning aircraft and two EMB 145 MP maritime patrol units.
The aircraft will form part of a new early warning program to be implemented in Mexico. The
two aircraft are based on the ERJ 145 regional jet platform. Certain modifications were made to
incorporate advanced mission systems such as early-warning radars, electro-optical sensors and
other communications equipment. The EMB 145 AEW&C will be equipped with an Anticipated
Aerial Alert Radar and Command and Control System by Ericsson from Sweden, whilst the
EMB 145 MP will be equipped with a maritime patrol radar in addition to other sensors.
Embraer will also supply a support center for operating the aircraft.
The full version of the financial statements is available at the Company's web site,
www.embraer.com.
For additional information contact:
Embraer - Empresa Brasileira de Aeronáutica S/A
Anna Cecilia Bettencourt Milene Petrelluzzi
(55 12) 345 1106 (55 12) 345 3054
acecilia@embraer.com.br milene.petrelluzzi@embraer.com.br
This press release includes forward-looking statements or statements about events or circumstances which have not
occurred. We have based these forward-looking statements largely on our current expectations and projections
about future events and financial trends affecting our business and our future financial performance. These forward-
looking statements are subject to risks, uncertainties and assumptions, including, among other things: general
economic, political and business conditions, both in Brazil and in our markets; management’s expectations and
estimates concerning our future financial performance, financing plans and programs, and the effects of competition;
successful development and marketing of the ERJ 170/190 regional jet family and of the Legacy line of corporate
jets; our level of debt; anticipated trends in our industry; our expenditure plans; inflation and devaluation; our
ability to develop and deliver our products on a timely basis; and existing and future governmental regulation.
The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,” “expects” and similar
words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise
any forward-looking statements because of new information, future events or other factors, In light of these risks and
uncertainties, the forward-looking events and circumstances discussed in this press release might not occur. Our
actual results could differ substantially from those anticipated in our forward-looking statements.
10

11. EMBRAER - EMPRESA BRASILEIRA DE AERONÁUTICA S/A
CONSOLIDATED BALANCE SHEETS
Expressed in thousands of Brazilian reais - Corporate Law
September 30, December 31,
A S S E T S 2000 2000
CURRENT ASSETS:
Cash and cash equivalents 1,104,680 2,325,579
Trade accounts receivable 1,448,774 342,473
Allowance for doubtful accounts (24,750) (28,449)
Recoverable taxes 32,586 8,744
Income tax and social contribution on tax credits 106,959 226,154
Other receivables 50,739 40,217
Inventories 1,035,435 1,121,562
Prepaid expenses 20,955 16,808
------------- -------------
Total Current Assets 3,775,378 4,053,088
------------- -------------
NON-CURRENT ASSETS:
Trade accounts receivable 12,373 44,461
Recoverable taxes 2,112 4,505
Tax Incentive – FINAM 4,195 -
Compulsory loans and guarantee deposits 5,667 11,043
Other receivable 90,926 66,743
Income tax and social contribution on tax credits 149,693 111,527
------------- -------------
Total Non-Current Assets 264,966 238,279
------------- -------------
PERMANENT ASSETS:
Investments 6,792 8,112
Property, plant and equipment 417,271 522,551
Deferred charges 257,143 277,023
------------- -------------
Total Permanent Assets 681,206 807,686
------------- -------------
Total Assets 4,721,550 5,099,053
======== ========
11

12. EMBRAER - EMPRESA BRASILEIRA DE AERONÁUTICA S/A
CONSOLIDATED BALANCE SHEETS
Expressed in thousands of Brazilian reais - Corporate Law
September 30, December 31,
LIABILITIES 2000 2000
CURRENT LIABILITIES:
Loans 760,701 716,744
Suppliers 528,206 521,175
Accounts payable 118,534 124,340
Customers’ advances 619,075 567,037
Taxes and social charge payable 130,829 149,681
Income tax and social contribution payable 77,959 78,047
Dealers and sales agents 1,055 1,261
Accrued liabilities 176,891 358,794
Dividends 46,199 116,127
Interest on shareholders' capital - 33,780
Accrued interest on debentures 871 1,797
-------------- -------------
Total Current Liabilities 2,460,320 2,668,783
-------------- -------------
LONG TERM LIABILITIES:
Loans 144,386 177,505
Accounts payable 255,274 280,580
Customers’ advances 163,032 158,771
Long term portion of refinanced taxes 57,437 52,531
Accrued liabilities 29,076 28,082
Debentures 173,501 177,677
-------------- -------------
Total Long-Term Liabilities 822,706 875,146
-------------- -------------
DEFERRED INCOME 390 409
-------------- -------------
MINORITY INTEREST 13,466 15,989
-------------- -------------
SHAREHOLDERS’ EQUITY:
Capital 808,983 808,984
Capital reserves 21,519 29,974
Legal reserve 28,766 62,135
Reserve for investments and working capital 565,400 637,633
-------------- -------------
Total Shareholders’ Equity 1,424,668 1,538,726
-------------- -------------
Total Liabilities 4,721,550 5,099,053
======== ========
12

13. EMBRAER - EMPRESA BRASILEIRA DE AERONÁUTICA S/A
CONSOLIDATED STATEMENT OF INCOME
Expressed in thousands of Brazilian reais - Corporate Law
1999 2000
4th December 4th December
Quarter 31, Quarter 31,
GROSS SALES:
Sales -
Domestic market 35,005 156,694 30,503 107,202
Foreign market 919,224 3,222,012 1,494,626 5,123,541
Sales taxes (3,433) (12,094) (10,360) (10,360)
Other sales deductions (19,151) (19,151) (25,054) (121,034)
-------------- -------------- -------------- -------------
NET SALES 931,645 3,347,461 1,489,715 5,099,349
COST OF SALES (684,574) (2,391,274) (1,015,561) (3,510,978)
-------------- -------------- -------------- -------------
GROSS PROFIT 247,071 956,187 474,154 1,588,371
-------------- -------------- -------------- -------------
OPERATING REVENUES (EXPENSES):
Administrative (24,820) (84,997) (41,780) (144,033)
Selling (54,251) (220,201) (128,169) (358,086)
Other income (expense), net (13,056) (25,732) 487 (61,073)
Equity in subsidiaries 814 (254) 1,095 1,472
Profit sharing (25,592) (36,632) (41,018) (80,540)
-------------- ------------- ------------- -------------
INCOME FROM OPERATIONS (EXPENSES) 130,166 588,371 264,769 946,111
BEFORE FINANCIAL EXPENSES
-------------- ------------- ------------- -------------
FINANCIAL INCOME (EXPENSE):
Interest expense (16,439) (119,888) (43,533) (174,538)
Interest income 23,098 94,075 68,539 163,692
Monetary and exchange variations, net 53,973 (208,831) (23,712) (96,647)
-------------- ------------- ------------- -------------
INCOME FROM OPERATIONS AFTER 190,798 353,727 266,063 838,618
FINANCIAL INCOME (EXPENSES)
-------------- ------------- ------------- -------------
NON-OPERATING INCOME (EXPENSE), NET (32,142) (31,517) (3,111) 19,232
-------------- ------------- ------------- -------------
INCOME BEFORE INCOME TAX 158,656 322,210 262,952 857,850
-------------- ------------- ------------- -------------
PROVISION FOR INCOME TAX AND SOCIAL (43,025) (93,920)
CONTRIBUTION (73,024) (274,647)
110,711 162,966 80,381 67,275
NET INCOME AFTER TAXES -------------- ------------- ------------- -------------
INCOME FROM OPERATIONS AFTER 226,342 412,152 249,413 650,478
FINANCIAL INCOME (EXPENSES)
------------- ------------- ------------- -------------
MINORITY INTEREST - - (2,854) (5,299)
-------------- -------------- ------------- -------------
NET INCOME 226,342 412,152 246,559 645,179
======== ======== ======== =======
13

14. EMBRAER - EMPRESA BRASILEIRA DE AERONÁUTICA S/A
STATEMENT OF CASH FLOW – CONSOLIDATED
4th. Quarter December 31,
2000 2000
OPERATING ACTIVITIES:
Net income for the year 246.558 645.179
Items that do not affect cash flow-
Depreciation and amortization 42.416 150.156
Allowance for doubtful accounts 3.698 8.408
Loss (gain) on permanent asset disposals (119) 1.767
Write-off of deferred charges (1.056) 1.182
Reversal of deferred income 668 (12)
Provision for lossess 6.386 14.058
Deferred income and social contribution taxes (81.227) (67.275)
Interest on loans, tax installments and debêntures 19.998 80.760
Reserve for (reversal of) contingencies (2) (107)
Monetary variations, net 36.798 76.194
Minority interests 5.299 5.299
Write down of investment 46 46
Equity in subsidiary (1.095) (1.472)
--------------- ---------------
278.368 914.183
--------------- ---------------
CHANGES IN CURRENT ASSETS AND LIABILITIES: 1.210.550 1.201.733
======== ========
CHANGES IN NON CURRENT ASSETS AND LIABILITIES 24.157 165.998
--------------- ---------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1.513.075 2.281.914
--------------- ---------------
INVESTING ACTIVITIES
Sales of property, plant and equipment 240 1.859
Compulsory loans (5.376) (4.134)
Additions to property, plant and equipment (119.284) (195.953)
Additions to deferred charges (46.218) (105.008)
Additions to investments 4.372 4.160
--------------- ---------------
NET CASH USED IN INVESTING ACTIVITIES (166.266) (299.076)
--------------- ---------------
FINANCING ACTIVITIES:
Loans paid (78.584) (397.453)
Payment of refinanced taxes (1.108) (5.698)
Guarantee deposits (6.316) (13.728)
Dividends paid (39.902) (224.629)
Payment of charges on debentures - (3.730)
Capital increase - 439.824
--------------- ---------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (125.910) (205.414)
--------------- ---------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 1.220.899 1.777.424
--------------- ---------------
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR - 548.155
--------------- ---------------
CASH AND CASH EQUIVALENTS, END OF YEAR 1.220.899 2.325.579
14

15. EMBRAER - EMPRESA BRASILEIRA DE AERONÁUTICA S/A
BACKLOG AT DECEMBER 31, 2000
- ERJ 135:
Firm
Customers Country Firm Option Deliveries Backlog
American Eagle USA 40 0 33 7
British Midland United Kingdom 4 0 0 4
City Air Sweden 2 1 1 1
Continental Express USA 50 0 18 32
Proteus France 10 15 6 4
Regional Airlines France 5 0 3 2
Regional Airlines Morocco 5 5 0 5
SA Airlink South Africa 30 40 0 30
TOTAL 146 61 61 85
ERJ 140:
Firm
Customers Country Firm Option Deliveries Backlog
American Eagle USA 133 31 0 133
TOTAL 133 31 0 133
- ERJ 145:
Firm
Customers Country Firm Option Deliveries Backlog
Air Caraibes Guadalupe 2 0 2 0
Air Moldova Moldavia 2 2 0 2
Alitália Italy 8 13 6 2
American Eagle USA 56 17 50 6
Axon Airlines Greece 4 2 0 4
British Midland United Kingdom 10 6 6 4
British Regional United Kingdom 23 3 17 6
Brymon United Kingdom 7 14 6 1
Cirrus Germany 1 0 1 0
Continental Express USA 225 100 79 146
Crossair Switzerland 25 15 9 16
ERA Spain 2 0 2 0
KLM Exel Holland 3 2 2 1
LOT Poland 16 0 10 6
Luxair Luxemburg 9 2 7 2
Mesa USA 36 64 12 24
Portugália Portugal 8 0 8 0
Proteus France 13 0 6 7
Regional Airlines France 15 0 11 4
Rheintalflug Austria 3 5 3 0
Rio-Sul Brazil 15 15 15 0
Sichuan Airlines China 5 0 3 2
Skyways AB Sweden 4 11 4 0
Trans States USA 12 0 11 1
Wexford USA 45 45 18 27
Total 549 316 288 261
- ERJ 170:
Firm
Customers Country Firm Option Backlog
Crossair Switzerland 30 50 30
GECAS USA 50 78 50
Regional Airlines France 10 5 10
Total 90 133 90
- ERJ 190:
Firm
Customers Country Firm Option Backlog
Crossair Switzerland 30 50 30
GECAS USA 0 22 0
Total 30 72 30
15

16. Legacy:
Firm
Customers Country Firm Option Deliveries Backlog
SWIFT USA 25 25 0 25
Undisclosed USA 6 6 2 4
TOTAL 31 31 2 29
16