Embraer announced in Paris that it has won, with the support of BNDES-exim financing, several international bids for the sale of some 350 aircraft (for a total of some US$ 7 billion) to companies in the Europe and the US.

The operations are being carried out with BNDES financing through the BNDES-exim buyer's credit line (financing to importers). For every aircraft delivered to the buyer, the BNDES will pay Embraer the value of the aircraft being exported. The cost of credit will be calculated in accordance with BNDES rates based on the Libor rate of the day the aircraft is delivered. The mortgage of the financed aricraft will serve as guarantee.

Traditional suppliers such as Canada's Bombardier and Germany's Fairchild-Dornier also competed in the international bids.

The companies that signed purchasee contracts with Embraer were Crossair (Switzerland), Europe's largest regional airline and a subsidiary of Swissair; Alitalia (Italy); the Mesa Airlines Inc. Group (USA); Transtate (USA); and Brymon (a subsidiary of British Airways).

Crossair purchased the following aircaft as part of its program to modernize its fleet: 40 ERJ-145 50-seat aircraft; 30 ERJ-170 70-seat aircraft; 30 ERJ 190-200 108-seat aircraft. The company also received an option to buy a further 100 aircraft of these models. The total price of the purchase was US$ 4.9 billion.

With the sale Embraer, a Brazilian company with up-to-the-minute technology, becomes the principal supplier to Crossair, which is the first client of Embraer's new family of commuter jets that comprises the ERJ 170, 190-100 and 190-200.

The amount of the contracts signed with Alitalia, Mesa, Transtate and Brymon will be announced in the next few days.

June, 1999