NEIVA DELIVERS 1000TH IPANEMA CROP DUSTER
(1000th unit is powered by Aviation Alcohol (AvAlc)

Botucatu, March 15, 2005 - Indústria Aeronáutica Neiva, a wholly owned Embraer subsidiary, today delivered the 1000th Ipanema crop duster at a ceremony held in Botucatu, São Paulo, where the company is based.

The milestone aircraft is also the first ethanol-powered crop duster ever delivered to a customer by Neiva. The company's alcohol-powered Ipanema received type certification to fly with this type of fuel, which is extracted from sugar cane, in October 2004 from the Brazilian certification authority Centro Técnico Aeroespacial (CTA). Neiva registered the name Aviation Alcohol (AvAlc) for use in Brazil.

The Ipanema is Neiva's best selling aircraft with more than 30 years of uninterrupted production and more than 1,000 units sold, most of which use aviation gasoline. Neiva's new Ipanema is the first series production aircraft in the world coming out of the factory certified to fly with ethanol.

In 2004, Neiva produced and sold 83 Ipanemas compared with 70 forecast aircraft. The company delivered 46 units in the previous year. Neiva's market share is currently about 80 percent, making it a dominant force on the domestic agricultural aviation market.

The choice for developing a crop duster fueled by ethanol owes to the fact Brazil is a major producer of this type of fuel. Automobiles here have been using alcohol for more than 20 years.

Ethanol is about three to four times cheaper than aviation gasoline and also a cleaner source of energy capable of improving the aircraft's overall performance. The new Ipanema engine also brings other advantages such as lower maintenance costs and a 20 percent reduction in operating costs.

This can have a positive impact on the competitiveness of Brazil's agribusiness, the primary source of the country's exports.Conversion of existing Ipanema engines is not only feasible but also cost effective. Neiva received 100 orders to retrofit customers' AvGas-fueled Ipanemas into ethanol-powered airplanes. Conversion kits have been offered to customers, with deliveries commencing in the first quarter of 2005 as scheduled.

THE IPANEMA

The crop duster Ipanema was developed in the late 1960s with financing provided by the Brazilian Ministry of Agriculture. The Ipanema is a low-wing monoplane used to spray crops with fertilizers and pesticides and to spread seeds.

The Ipanema made its first flight in July 1970 and was certified in the following year. The first model in the family was called EMB 200 and came out of the factory with a 260HP engine and a fixed pitch propeller. Series production started in 1972 at recently established Embraer.

The Ipanema was improved over the years to meet changing market requirements. In the 1970s and 1980s, it was equipped with a constant speed propeller, a more powerful 300HP engine and new wings.

In March 1980, manufacture of the Ipanema was transferred to Indústria Aeronáutica Neiva, then recently acquired by Embraer. In March 1992, a new model called EMB 202 Ipanemão was introduced.

The new EMB 202 Ipanemão has a 40 percent bigger hopper than its predecessors and it is capable of carrying 950 liters or 750 kilograms of chemicals. Aerodynamic improvements make the new EMB 202 series a faster and more productive aircraft.

The EMB 202 was also the first agricultural aircraft in the world to offer the revolutionary electrostatic spray system as optional. This system is the latest in agricultural application technology and makes for more complete crop coverage. It also permits reduced chemical spray rates, providing higher operator productivity and savings for farmers.

In 2002, Neiva launched the alcohol-powered Ipanema, which is based on the EMB 202 platform. With alcohol, the same fuel used in some Brazilian automobiles, the Ipanema offers lower operating cost and added horsepower.

Most Ipanema owners are based in the Brazilian states of Maranhão, Bahia, São Paulo, Mato Grosso, Mato Grosso do Sul, Tocantins, Paraná, Goiás, Roraima, Minas Gerais and Rio Grande do Sul.