SAO PAULO, Brazil, March 31 /PRNewswire-FirstCall/ -- TAM S.A. (BOVESPA: TAMM4, NYSE: TAM), reports its fourth quarter results for 2007 (4Q07). Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (R$) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP). (Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO ) Operational Performance Highlights -- 7.3 million passengers transported -- an increase of 10% -- Decrease in block hours/day per aircraft from 13.0 to 12.3 -- Gross Revenues of R$ 2.4 billion, an increase of 15.9% -- Begin operations of 2 A340, 2 A330, 7 A320 and 1 A321 compensated by 3 F100 returned in 4Q07 vs. 3Q07 -- New daily flight to Frankfurt since November 30 -- New daily flight to Madrid since December 21 -- Begin of code share operations with United Airlines, LAN and signature of contract with Lufthansa -- Loan agreement with BNP Paribas to finance up to US$ 117 million in pre-delivery payment (PDP) operations for 30 Airbus aircraft -- R$ 83 million EBIT and R$ 353 million EBITDAR, margins of 3.6% and 15.4% respectively in 4Q07 Domestic Operations Domestic Operations -- TAM reached 48.2% average market share in 4Q07. -- ASKs (capacity) increased 9.3% in 4Q07 compared to 4Q06 as a result of the increase in the operating fleet of 20 A320, 1 A319 and 3 A321, compensated by 9 F100 returned and other 5 in redelivery and the reduction in block hours by aircraft from 13.0 hours/day to 12.3 hours/day (total operation). -- RPKs (demand) increased 9.9% in 4Q07 compared to 4Q06. -- TAM's domestic load factor increased to 71.1% in 4Q07, compared to 70.7% in 4Q06. International Operations -- TAM reached 71.5% average market share in 4Q07 -- ASKs (capacity) increased 71.6% in 4Q07, due to the increase of 2 A340, 2 A330 and 3 MD11 into our international operating fleet allowing the beginning of daily flights to Milan, Frankfurt and Madrid and the third daily flight to Paris. In South America we started daily flights to Cordoba, Caracas and Montevideo through the increase in the narrow body fleet in the region. -- RPKs (demand) increased 65.3% comparing 4Q07 with 4Q06. -- TAM's international load factor decreased 2.7p.p. to 70.8% in 4Q07 compared to 73.5% in 4Q06. Financial Performance -- Total CASK increased by 1.4% in 4Q07 compared to 4Q06. -- EBIT and EBITDAR margins of 3.6% and 15.4% respectively. -- Net income of R$ 49.8 million, a positive margin of 2.2%. -- Our total cash and cash equivalents equalled R$2,607 million. -- Return on Assets (ROA) of 2.0% -- Return on Equity (ROE) of 8.4% To see the full press release, visit the company's website: http://www.tam.com.br/ir About TAM: TAM (http://www.tam.com.br/) has been the leader in the Brazilian domestic market for more than four years, and held a 50.6% domestic market share and 67.3% international market share at the end of February 2007. 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 4.5 million subscribers and has awarded more than 5.2 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. http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO http://photoarchive.ap.org/ DATASOURCE: TAM S.A. CONTACT: Libano Miranda Barroso, TAM Investor Relations, +011-55-11-5582-9715, fax, +011-55-11-5582-8149, Web site: http://www.tam.com.br/ http://www.tam.com.br/ir

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