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TAM and TAP Portugal Broaden Codeshare Agreement

July 31, 2008

SAO PAULO, Brazil, July 31 /PRNewswire-FirstCall/ — TAM (Bovespa: TAMM4 and NYSE: TAM) and TAP Portugal are broadening the codeshare agreement signed between the two companies to offer daily connections between Portugal and Argentina. The partnership allows TAP to sell, with its own code, the flights operated by TAM to Buenos Aires, Argentina, via Sao Paulo and Rio de Janeiro.

With the start of this new phase of the partnership between TAM and TAP, passengers can check-in and send their luggage just once in Lisbon or Porto and have quick connections in Sao Paulo and Rio de Janeiro to continue to Buenos Aires, reducing the total travel time.

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The partnership agreement, in effect since September 2007, also extends to the TAM Loyalty and TAP Victoria programs, as well as including the entire services network made available by the two companies, creating multiple options for accumulating or exchanging points or miles.

“Broadening the agreement between TAM and TAP will be more convenient for passengers traveling between Portugal and Argentina. We hope to extend this new phase of the partnership to other South American destinations,” stated Paulo Castello Branco, TAM Vice-President of Planning and Alliances.

“The success of our partnership is evident,” pointed out Jose Guedes Dias, TAP Director of Alliances and External Relations. “The gradual broadening of our cooperation demonstrates the commitment of both companies to ensure our clients have services even more convenient and special in terms of quality and reach. The mutual synergy of the TAP and TAM networks allows us to ensure the most convenient connections between Portugal and Brazil, and now also to Argentina”.

TAP believes that strengthening its cooperation with TAM will result in a considerably better service and range of options offered to its clients, which reflects the company’s main objective of anticipating and satisfying the growing needs of its passengers.

   Investor Relations:   Phone: (55) (11) 5582-9715   Fax: (55) (11) 5582-8149   invest@tam.com.br   http://www.tam.com.br/ir    Press Agency:   Phone: (55) (11) 5582-8167   Fax: (55) (11) 5582-8155   tamimprensa@tam.com.br   MVL Comunicacao   Phone: (55) (11) 3594-0302 / 0304 / 0305    About TAM:   

TAM (http://www.tam.com.br/) has been the leader in the Brazilian domestic market since July 2003, and closed last June with a 48.6% market share. Among Brazilian airline companies that operate international flights, TAM’s market share was 75.3%. The company operates flights to 42 Brazilian destinations. It serves 79 different destinations in the domestic market through commercial agreements with regional companies. Its international operations include its own flights to 15 destinations in the United States, Europe and South America. Additionally, it has codeshare agreements with international airline companies that allow passengers to travel to another 64 destinations. TAM was the first airline company to launch a loyalty program in Brazil. TAM’s program currently has 4.7 million members and has redeemed more than 5.5 million tickets in exchange for points.

About TAP Portugal

TAP Portugal is the Portuguese airline market leader, and a member of the Star Alliance since March 14, 2005 when the company celebrated its 60th anniversary. Its Hub in Lisbon is a privileged access platform to Europe, at the crossroads of Africa and North and South America, where TAP stands out as the leading European airline operating in Brazil, with 67 flights weekly. TAP’s network currently covers 58 destinations in 25 countries worldwide. Operating, on average, more than 1,850 flights weekly, TAP has a modern fleet of 53 Airbus aircraft and an additional 16 aircraft working for PGA which TAP acquired in 2007, forming a global fleet of 69 aircraft. Pursuing primarily a client-orientated policy, TAP continually invests in innovation and in the use of new technology, offering high quality, secure and reliable products and services.

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TAM

CONTACT: Libano Miranda Barroso, TAM Investor Relations,+011-55-11-5582-9715, fax, +011-55-11-5582-8149, invest@tam.com.br

Web site: http://www.tam.com.br/




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