SAO PAULO, Brazil, May 9 /PRNewswire-FirstCall/ -- TAM Linhas Aereas (Bovespa: TAMM4 and NYSE: TAM), TAM Mercosur and the LAN Alliance -- comprised of LAN Airlines, LAN Peru, LAN Argentina and LAN Ecuador -- have decided to formalize a business alliance. (Logo: http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO ) The agreement aims to develop partnerships in routes operated by these companies in South America, broadening passengers' options to fly to several destinations around the continent. Thus, TAM will expand its flight offer in South America to include a more complete and diversified network for its passengers. In addition, clients of LAN Alliance companies will enjoy the ease of traveling routes operated by TAM and TAM Mercosur, with multiple hours and frequency options. This broad integration will be possible through the business alliance, which will be implemented within the next months. One of the benefits passengers will enjoy with this business alliance is being able to travel with a single ticket from the beginning to the end of the route, in addition to the possibility of using the companies' VIP areas. Another advantage is the accrual of the TAM Fidelity Program and the LANPASS, benefiting passengers who travel frequently. For TAM's CEO, Marco Antonio Bologna, the alliance with LAN represents an important step towards the regional integration process in South America, thus stimulating the distribution of passengers in the Brazilian, Chilean, Argentinean, Peruvian, Venezuelan and other markets. "TAM and LAN passengers can rely on a wider variety of flights while enjoying all of the advantages of both companies' fidelity programs," said Bologna, who points out that the agreement also reinforces TAM's strategy of maintaining partnerships with leading companies in the markets where it operates. Enrique Cueto, LAN's vice-chief executive officer, said, "Thanks to this agreement, our passengers will enjoy an excellent network that will make their travels easier. This will encourage commercial agreements already existing between the countries, fomenting tourism and bilateral cooperation in the region." Investor Relations Contact: Phone: (55) (11) 5582-9715 Fax: (55) (11) 5582-8149 http://www.tam.com.br/ri Press Agency Contact: Phone: (55) (11) 5582-8167 Fax: (55) (11) 5582-8155 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 48 destinations throughout Brazil. With the commercial agreements executed with regional companies, it reaches 75 destinations outside 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, in Venezuela. With TAM Mercosur, it also serves Asuncion and Ciudad del Este (Paraguay), Cordoba (Argentina), Montevideo (Uruguay), 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 LAN: LAN Airlines is one of Latin America's leading airlines. LAN is integrated by LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as well as LAN Cargo and its affiliates. LAN Alliance serves 15 destinations in Chile, 12 in Peru, 10 in Argentina, two in Ecuador, 15 destinations in other Latin American countries and Caribbean, three in the United States two in Europe and four in the South Pacific, in addition to 52 additional international destinations through several code-share agreements. Currently, the LAN Alliance operates 68 passenger aircraft and 10 freighters. LAN Airlines is a member of OneWorld(TM). It has bilateral commercial agreements with American Airlines, British Airways, Iberia and Qantas and also with Alaska Airlines, AeroMexico, TAM, Korean Air and JAL. For more information visit http://www.lan.com/ or http://www.oneworldalliance.com/ http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO DATASOURCE: TAM CONTACT: TAM: Investors, +011-5511-5582-9715, fax, +011-5511-5582-8149, , or media, +011-5511-5582-8167, fax, +011-5511-5582-8155, Web site: http://www.tam.com.br/ http://www.lan.com/ http://www.oneworldalliance.com/

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