EMBRAER ANNOUNCES NEW ERJ-135 CONTRACT; ROLLOUT IS SCHEDULED FOR MAY 12 WITH 73 FIRM ORDERS FOR JET ALREADY LOGGED SAO PAULO, Brazil, May 6 /PRNewswire/ -- Embraer today announced 25 firmorders with 50 options for its new 37-seat jet, the ERJ-135 -- from NorthAmerican regional airline Continental Express. The contract is valued atapproximately US$315 million. In September 1996, Continental Express ordered 25 ERJ-145s, with anadditional 175 options, thus becoming the North American launch customer ofthis 50-seat regional jet. In June 1997, Continental Express exercised itsfirst set of 25 options, increasing firm orders to 50 ERJ-145s. The carrieris currently operating 22 ERJ-145s from its Cleveland and Newark hubs. Continental Express will be North America's first operator of the ERJ- 135,with deliveries beginning in July 1999. Based on the ERJ-145 design, the newaircraft provides 90% commonality, such as the Rolls Royce/Allison AE3007A-3engines and main systems, the same cockpit, the same wings and tail, as wellas the same fuselage (11.6 ft shorter). With this new product, scheduled to be rolled out on May 12 in Sao Jose dosCampos, Embraer introduces the "jet family" concept. This will providesubstantial savings in training, maintenance and spare parts costs. The ERJ-135 sales order book now stands at 73 firm orders and 122 optionsplaced by four customers: Continental Express, Business Express and WexfordManagement LLC, from the U.S., and Flandre Air of France. During the announcement in Brazil, Gordon Bethune, CEO and Chairman ofContinental and Continental Express Airlines, said "we now have solidified ourposition as a leader in the use of small, efficient jets on regional routes.And, we are Embraer's number one worldwide customer taking a product that hasproven itself with superior customer satisfaction, turboprop-like costs, andexcellent reliability in its first year of operation." Mauricio Botelho, President and CEO of Embraer continued by stating, "weare extremely pleased and honored with the selection of the ERJ-135 by ourlargest customer, Continental Express. Their decision represents anendorsement for the Embraer Jet Family concept, demonstrated by theperformance of 22 ERJ-145s in operation, providing jet services at turbopropcosts. This new contract with Continental confirms the success of the ERJ-135." SOURCE EmbraerCONTACT: Jason Wyse, Burson-Marsteller, 305-347-4327 (Miami); or Marcia Benavides, 5512-345-1311 (Sao Jose dos Campos)/ /Web site: http://www.embraer.com/ -END-