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$) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP). (Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO ) To see the full press release, visit the company's website: http://www.tam.com.br/ir. Conference calls Portuguese English May 13, 2008 May 13, 2008 10:00 am (Brazil time) 11:30 am (Brazil time) 09:00 am (US EDT) 10:30 am (US EDT) Phone: +55 (11) 2188-0188 Phone: +1 (973) 935-8893 Password: TAM Password: 46701383 Replay: +55 (11) 2188-0188 Replay: +1 (706) 645-9291 Available from 05/13/2008 until Available from 05/13/2008 until 05/20/2008 05/20/2008 Code: TAM Code: 46701383 Highlights -- 7.6 million passengers transported - an increase of 13% -- Decrease in block hours/day per aircraft from 13.0 to 12.6 -- Gross Revenues of R$ 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 http://www.tam.com.br/ri 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 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. http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO DATASOURCE: TAM S.A. CONTACT: Investor Relations, Libano Miranda Barroso (CFO), or Roberta Noronha (Manager Investor Relations), or Jorge Helito (Investor Relations Analyst), or Andre Ferreira (Investor Relations Analyst), all of TAM, +5511-5582-9715, Fax, +5511-5582-8149, Web site: http://www.tam.com.br/ http://www.tam.com.br/ri

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