TAM S.A. 1st Quarter Results Announcement

SAO PAULO, Brazil, May 12 /PRNewswire-FirstCall/ -- TAM S.A. (BOVESPA: TAMM4, NYSE: TAM), reports its first quarter results for 2008 (1Q08). Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (R$) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP).

(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO )

    To see the full press release, visit the company's website:
www.tam.com.br/ir.

    Conference calls

    Portuguese                         English
    May 13, 2008                       May 13, 2008
    10:00 am (Brazil time)             11:30 am (Brazil time)
    09:00 am (US EDT)                  10:30 am (US EDT)

    Phone: +55 (11) 2188-0188          Phone: +1 (973) 935-8893
    Password: TAM                      Password: 46701383

    Replay: +55 (11) 2188-0188         Replay: +1 (706) 645-9291
    Available from 05/13/2008 until    Available from 05/13/2008 until
    05/20/2008                         05/20/2008
    Code: TAM                          Code: 46701383

    Highlights
    -- 7.6  million passengers transported - an increase of 13%
    -- Decrease in block hours/day per aircraft from 13.0 to 12.6
    -- Gross Revenues of R$ 2.3 billion, an increase of 22.7%
    -- Redelivery of two F100s, compensated by the delivery of 1 A320 in 1Q08
       vs. 4Q07
    -- Begin of code share operations with LAN Peru
    -- IOSA certificate (IATA Operational Safety Audit) renewed until January
       2010
    -- Firm contract for acquisition of 22 A350 XWBs, four A330-200s and 20
       A320 aircraft
    -- Easy Web Check-in expanded for international Destinations
    -- Conclusion of 30 business agreements (SPAs), reaching 64 airline
       partners abroad
    -- 153 thousand shares bought back


    Combination of TAM's Loyalty Program with Lufthansa's Miles & More

    Operational Performance

    Domestic Operations
    -- TAM reached 50.0% average market share in 1Q08.
    -- ASKs (capacity) increased 14.2% in 1Q08 compared to 1Q07 as a result of
       the increase in the operating fleet of 16 A320 and 3 A321, compensated
       by 13 F100 reduction and other 3 in redelivery and the reduction in
       block hours by aircraft from 13.0 hours/day to 12.6 hours/day (total
       operation).
    -- RPKs (demand) increased 14.6% in 1Q08 compared to 1Q07.
    -- TAM's domestic load factor increased to 70.9% in 1Q08, compared to
       70.7% in 1Q07.


    International Operations
    -- TAM reached 67.7% average market share in 1Q08.
    -- ASKs (capacity) increased 49.7% in 1Q08, due to the increase of 2 A340
       and 2 A330 and into our international operating fleet allowing the
       beginning of long haul daily flights to Frankfurt and Madrid.  In South
       America we started daily flights to Caracas and Montevideo through the
       increase in the narrow body fleet in the region.
    -- RPKs (demand) increased 61.3%  comparing 1Q08 with 1Q07.
    -- TAM's international load factor increased 5.6p.p. to 76.8% in 1Q08
       compared to 71.2% in 1Q07.


    Financial Performance
    -- Total CASK increased by 2.1% in 1Q08 compared to 1Q07, and CASK
       excluding fuel decreased 5.5%.
    -- EBIT and EBITDAR margins of 0.8% and 12% respectively.
    -- Net income of R$ 2.6 million, a positive margin of 0.1%.
    -- Our total cash and cash equivalents equaled R$ 2,226 million.
    -- Return on Assets (ROA) of 1.1%
    -- Return on Equity (ROE) of 4.9%

    Investor Relation contacts:
    Tel.: (5511) 5582-9715
    Fax: (5511) 5582-8149
    invest@tam.com.br
    www.tam.com.br/ri

About TAM:

TAM (www.tam.com.br) has been the leader in the Brazilian domestic market for more than four years, and held a 47.1% domestic market share and 72.4% international market share at the end of April 2008. TAM operates regular flights to 42 destinations throughout Brazil. It serves 79 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. Currently, the program has over 4.7 million subscribers and has awarded more than 5.5 million tickets.

Forward-looking statement:

This notice may contain estimates for future events. These estimates merely reflect the expectations of the company's management and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained herein. These estimates are subject to changes without prior notice.