Bilateral agreement includes codesharing in both countries and benefits for members of frequent flier programs of both airlines SAO PAULO, Brazil, Oct. 7 /PRNewswire-FirstCall/ -- TAM (Bovespa: TAMM4 and NYSE: TAM) and Air Canada, Canada's largest airline and a founding member of the Star Alliance, announced today in Sao Paulo that they have reached an operational agreement for codesharing and the integration of their frequent flier programs, TAM Fidelidade and Aeroplan (Air Canada's mileage plan). (Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO ) The bilateral agreement will enable the two companies to expand services for customers traveling between Brazil and Canada, including more options for destinations in both countries and convenient connections to the main Brazilian and Canadian cities. The implementation of codesharing and the integration of the TAM Fidelidade and Aeroplan programs are scheduled for November, once the authorities in both countries have approved the partnership. For Commander David Barioni Neto, President of TAM, the agreement with Air Canada contributes to the company's strategy of expanding its operations abroad and consolidating its position as one of the principal airlines in the world aviation market. "We have an important commitment to our clients to provide world-class service within the framework of our activities based on the three pillars: Service Excellence, Technical and Operational Excellence, and Excellence in the Management of the company," states Barioni. TAM's Vice President of Sales and Planning, Paulo Castello Branco, adds: "The agreement with Air Canada reinforces our strategy of establishing partnerships with the world's main airlines and enables us to offer our customers a wide variety of destinations throughout all of North America." Montie Brewer, President and CEO of Air Canada, who was at today's ceremony announcing TAM's entry into the Star Alliance, also spoke about codesharing. "Air Canada has the pleasure of initiating this relationship with TAM, the leader of Brazil's market for commercial aviation. It will be of benefit to the customers of both airlines by facilitating greater access to the principal cities of Brazil, Canada and other countries," he said. "As a founding member of the Star Alliance, we have witnessed the benefits that the Alliance has brought for international travelers, simplifying travel and expanding options for connections all over the world. We welcome the arrival of TAM as a member of the Star Alliance and are expanding for our customers the benefits they most appreciate." With the implementation of the bilateral agreement between Air Canada and TAM, the customers of both airlines will benefit from the simplification of plane reservations, convenient connections on a single airline ticket, and check-in of luggage through to the final destination. TAM passengers will also be able to take advantage of the benefits of flights between S�o Paulo and Toronto operated as a codeshare by Air Canada, as well as connections in Toronto to Vancouver, Calgary, Edmonton, Winnipeg, Montreal and Quebec. Passengers on Air Canada, in turn, will have access to six Brazilian cities -- Rio de Janeiro, Salvador, Recife, Belo Horizonte, Curitiba and Porto Alegre -- on codeshare flights offered by TAM departing from Guarulhos International Airport in Sao Paulo. http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO DATASOURCE: TAM 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/

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