Agreement will enable TAM and United customers to connect to new South American and United States destinations and will expand frequent flyer opportunities for customers of both carriers SAO PAULO, Brazil, May 18 /PRNewswire-FirstCall/ -- TAM Linhas Aereas (Bovespa: TAMM4 and NYSE: TAM) and United Airlines (NASDAQ:UAUA), a founding member of the Star Alliance, will sign today a memorandum of understanding to develop an agreement that enables the airlines to offer codeshare flights with each other and expands international destinations and frequent flyer opportunities for customers of both carriers. (Logo: http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO ) The proposed agreement will result in more options for customers traveling between Brazil and the United States. The agreement includes the implementation of codeshare on TAM and United flights, giving customers of United's Mileage Plus(R) and TAM's Fidelidade programs the opportunity to earn and redeem miles to destinations never-before served. TAM is the market leader in Brazil, serving 49 cities in the country, including all state capitals and the Federal District. Internationally, it serves several countries in Europe and North and South America. United Airlines serves more than 200 destinations worldwide from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. TAM president Marco Antonio Bologna said that the agreement with United Airlines will complement TAM's international route network in the United States, providing passengers with access to United's destinations in the U.S. "United Airlines will also offer TAM flights in the United States to its customers, and provide new connection opportunities from Brazil in Washington and Chicago -- important destinations for business travelers," Bologna commented. "We anticipate that this partnership will result in more traffic and more revenue for TAM." "We are very pleased to sign this memorandum of understanding with TAM to expand South American destination options for our customers," said John Tague, Executive Vice President and Chief Revenue Officer for United Airlines. "TAM is a leading airline in South America with excellent service, and our complementary route networks will deliver many codeshare and frequent flyer benefits to our customers. The agreement will enable us to improve our service to customers while supporting our strategy of international growth." Implementation of the memorandum of understanding will require execution of formal agreements and is dependent on a formal approval from the Brazilian and U.S. governments and other integrations that are expected to be in place in late 2007. Investor Relations Contact: Press Agency Contact: Phone: (55) (11) 5582-9715 Phone: (55) (11) 5582-8167 Fax: (55) (11) 5582-8149 Fax: (55) (11) 5582-8155 http://www.tam.com.br/ri About TAM: The company (http://www.tam.com.br/) has been the Brazilian domestic market leader since July 2003, and closed last April with a 50.72% market share. The company flies to 49 destinations throughout Brazil. With the commercial agreements executed with regional companies, it reaches 76 destinations in the national territory. TAM's operations in South America include direct flights to Buenos Aires (Argentina) and Santiago (Chile). Within six months, TAM will start operating daily flights to Caracas, Venezuela. With TAM Mercosur, it also serves Asuncion and Ciudad del Este (Paraguay), Cordoba (Argentina), Montevideo (Uruguay), and Santa Cruz de la Sierra and Cochabamba (Bolivia). In April, TAM's international market share was 69.7% among Brazilian airlines. International operations include long-haul direct flights to the following destinations: New York and Miami (USA), Paris (France), London (England) and Milan (Italy). It also maintains commercial agreements with international companies that allow passengers to fly to a wide variety of destinations worldwide. A pioneer in the launch of a Loyalty Program for airlines in Brazil, TAM currently has 3.8 million members and has awarded more than 4.2 million tickets. About United Airlines: United Airlines, the second-largest airline in the world, operates more than 3,720 daily flights on United, United Express and Ted, to more than 210 destinations from its hubs in Chicago, Washington D.C., Los Angeles, San Francisco and Denver. Present in Asia, Oceania, Europe and Latin America, United is the largest international airline in the U.S. United is a founding member of the Star Alliance, providing its clients with travel to 855 destinations in 155 countries all over the world. Its 56,000 employees reside in all U.S. states and other countries. In Brazil, it flies daily from Rio de Janeiro and Sao Paulo to O'Hare Airport in Chicago, and Dulles in Washington. Press agency contact and other information about the company are on the company's site in Portuguese (http://www.united.com.br/) and in English (http://www.united.com/). http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO DATASOURCE: TAM CONTACT: TAM, Investors, +011-55-11-5582-9715, fax, +011-55-11-5582-8149, , or Media, +011-55-11-5582-8167, fax, +011-55-11-5582-8155, Web site: http://www.tam.com.br/

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