[SatNews] A new company is to be formed...

Embraer S.A. ("Embraer") and Telecomunicações Brasileiras S.A. - TELEBRÁS ("Telebrás") have signed a memorandum of understanding (MOU) for the purpose of forming a company, of which Embraer will hold a 51 percent share and Telebrás 49 percent — the companies will work with the Federal Government to meet the needs of Brazil’s plan for satellite development. This will include the National Broadband Program and strategic defense and governmental communications. Additional information will be forthcoming from the Company as relevant events regarding this partnership occur.