TAM Announces 2Q08 Results

SAO PAULO, Brazil, Aug. 12 /PRNewswire-FirstCall/ - TAM S.A. (BOVESPA: TAMM4; NYSE: TAM), reports its second quarter results for 2008 (2Q08). 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).

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    Operational Performance

    Domestic Operations
    -- TAM reached 48.2% average market share in 2Q08.

-- ASKs (capacity) increased 13.6% in 2Q08 compared to 2Q07 as a result of the net increase in the operating narrow body fleet of four aircraft, composed by the increase of 13 A320 and 3 A321, compensated by the elimination of the Fokker 100 (in 2Q07 we had 12 F-100 in our operating fleet). Also due to the increase in block hours by aircraft from 12.6 hours/day to 12.7 hours/day (total operation).

-- RPKs (demand) increased 7.8% in 2Q08 compared to 2Q07.

-- TAM's domestic load factor decreased to 68.6% in 2Q08, compared to 72.3% in 2Q07.

International Operations

-- TAM reached 74% average market share in 2Q08.

-- ASKs (capacity) increased 21.6% in 2Q08, due to the increase of 2 A340 and 2 A330 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 29.3% comparing 2Q08 with 2Q07.

-- TAM's international load factor increased 4.3p.p. to 73.4% in 2Q08 compared to 69% in 2Q07.

Financial Performance

-- Total CASK increased by 8.4% in 2Q08 compared to 2Q07, and CASK excluding fuel decreased 3.4%.

    -- EBIT and EBITDAR margins of 2.7% and 12% respectively.
    -- Net income of R$ 50.2 million, a positive margin of 2%.
    -- Our total cash and cash equivalents equalled R$ 2,009 million.
    -- Return on Assets (ROA) of 2.4%.
    -- Return on Equity (ROE) of 10.1%.


    Conference calls
    Portuguese                         English
    August 14, 2008                    August 14, 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: 56769732

    Replay: +55 (11) 2188-0188         Replay: +1 (706) 645-9291
    Available from 08/14/2008 until    Available from 08/14/2008 until
     08/21/2008                         08/21/2008
    Code: TAM                          Code: 56769732

About TAM:

TAM (www.tam.com.br) has been the domestic market leader since July of 2003, and closed June 2008 with 48.6% of market share. The company flies to 42 destinations in Brazil. Through business agreements signed with regional companies, it reaches 79 different destinations in Brazil. TAM's market share among Brazilian companies that operate international flights stood at 75.3% in June. Operations abroad include TAM flights to 15 destinations in the United States, Europe and South America: New York and Miami (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires and Cordoba (Argentina), Santa Cruz de la Sierra (Bolivia), Santiago (Chile), Asuncion and Ciudad del Este (Paraguay), Montevideo (Uruguay), and Caracas (Venezuela). It has code-share agreements that make possible the sharing of seats on flights with international airlines, enabling passengers to travel to 64 other destinations in the U.S., Europe and South America. Currently, the program has over 5.0 million subscribers and has awarded more than 5.9 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.