Eastern European Carrier Operates Leased E-195

Embraer announced Tuesday the sale of the first Embraer 195 jet to Montenegro Airlines. The agreement also includes purchase rights for two more aircraft of the same model. The value of the deal, at list price, is $39.5 million, and could total $118.5 million if all of the purchase rights are exercised.

The Embraer 195 for Montenegro Airlines will be configured in a 116-seat, single-class layout, with delivery expected in 2009. The company plans to use the new airplane for key markets on the European continent, including routes to cities like London and Moscow.

"Montenegro Airlines is joining a select group of airlines, worldwide, that have chosen to operate Embraer 190 or Embraer 195 jets, including, among others, US Airways, Air Canada, Holland's KLM, Germany's Lufthansa, Britain's Flybe, France's Regional (Air France Group), and Finland's Finnair," stated Mauro Kern, Embraer Executive Vice President, Airline Market. "We are honored by Montenegro Airlines' decision, and happy to offer its passengers the most modern and comfortable experience on the market."

Last June, Embraer delivered the first Embraer 195 to Montenegro Airlines through a leasing operation carried out by GE Commercial Aviation Services (GECAS). This leasing contract includes another aircraft of the same model for delivery next year that will increase the airline's fleet to three Embraer 195s by mid-2009.

"We are very satisfied with the performance of the Embraer 195 and, for that reason, we decided to invest in expanding our fleet with this aircraft," said Zoran Durisic, President of Montenegro Airlines. "Embraer's E-Jets family has enjoyed great success with important airlines in Europe, the United States, and Asia, and our decision will allow us to offer the appropriate comfort and capacity for the markets of interest to our customers."

Andrija Lompar, the Minister of Transport, Maritime Affairs and Telecommunications of the Republic of Montenegro, stated: "The decision to purchase an aircraft is a highly committing business project, which, from the strategic point of view, creates new development perspectives for Montenegro and its citizens. The country acquired its tourism identity and set its strategy as a high-end European destination, therefore it is our commitment to provide a quality link of the country to Europe. Next year, with three new Embraer E-Jets in the fleet of this national airline, it will continue the expected passenger growth trend, entering new markets and introducing more destinations, thus making a quality contribution to economic development."

The Embraer 195 is the largest and newest aircraft of the modern four-member Embraer 170/190 family of E-Jets, and entered revenue service in September 2006. On June 30, 2008, the E-Jets had logged 847 firm orders and 827 options. Today, orders have come from more than 50 customers in 30 countries, worldwide, and over 400 aircraft in operation have surpassed 1.5 million flight hours.

FMI: www.embraer.com, www.montenegroairlines.com