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TAM Files Amended 2007 Annual Report

Posted on: Wednesday, 2 September 2009, 18:04 CDT

SAO PAULO, Sept. 2 /PRNewswire-FirstCall/ -- TAM (BOVESPA: TAMM4, NYSE: TAM) announced that it has filed an amended annual report on Form 20-F for the year ended December 31, 2007 (the 2007 Amended Annual Report) with the U.S. Securities and Exchange Commission (the SEC). The 2007 Amended Annual Report amends the annual report on Form 20-F for the year ended December 31, 2007 that was originally filed with the SEC on June 25, 2008 primarily to restate our cash flow statement filed therewith, in order to eliminate the effects of a non-cash item relating to a transfer of spare parts between property, plant and equipment and inventories that was incorrectly reported on our cash flow statement. The 2007 Amended Annual Report can be accessed on our website (www.tam.com.br/ir) and the SEC's website (www.sec.gov).

(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO )

The eliminated non-cash item did not impact our total "Change in cash and cash equivalents," which remains at R$153,899 thousand under Brazilian GAAP and R$167,031 thousand under US GAAP. The restatement is limited to our cash flow statement and does not affect any other reported amounts or disclosures in our consolidated financial statements for the year ended December 31, 2007. Our consolidated net income for the year ended December 31, 2007 remains unchanged under Brazilian GAAP and US GAAP.

However, we nonetheless concluded that there was a material error that impacted our cash flow statement under Brazilian Generally Accepted Accounting Practices (Brazilian GAAP) and United States Generally Accepted Accounting Practices (US GAAP) for 2007. The eliminated non-cash item represented R$83,951 thousand under both Brazilian GAAP and US GAAP.

We have also included a restated Management's Annual Report in Internal Control Over Financial Reporting in the 2007 Amended Annual Report relating to a material weakness (and our remedy thereof) in connection with the restatement, and we have included a note (2(s)) to our consolidated financial statements that form part of the 2007 Amended Annual Report that also further discusses the correction.

In addition to the restatements mentioned above, we have also enhanced other disclosures, as indicated in the Explanatory Note to the Amended 2007 Annual Report.

We also refer our investors to our annual report for the year ended December 31, 2008 on Form 20-F that was filed with the SEC on June 30, 2009 (which for the first time contained financial statements prepared in accordance with international financial reporting standards (IFRS) as issued by the International Accounting Standards Board), together with our press release entitled "TAM files 2008 Form 20-F Annual Report in IFRS" that we released on June 30, 2009 and furnished to the SEC on Form 6-K on July 1, 2009. Each of these documents can be accessed on our website (www.tam.com.br/ir) and the SEC's website (www.sec.gov).

Shareholders may receive a hard-copy of TAM's complete audited financial statements free of charge by requesting a copy through our Investor Relations Department at +55 11 5582 9715 or email: invest@tam.com.br.

About TAM:

TAM (www.tam.com.br) has been the domestic market leader since July of 2003, and closed July 2009 with 43.2% market share. The company flies to 42 destinations in Brazil. Through business agreements signed with regional companies, it reaches 79 different destinations in Brazil. TAM's market share among Brazilian companies that operate international flights stood at 88.3% in July. Operations abroad include TAM flights to 17 destinations in the United States, Europe and South America: New York, Miami and Orlando (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires (Argentina), Cochabamba and Santa Cruz de la Sierra (Bolivia), Santiago (Chile), Asuncion and Ciudad del Este (Paraguay), Montevideo (Uruguay), Caracas (Venezuela) and Lima (Peru). It has code-share agreements that make possible the sharing of seats on flights with international airlines, enabling passengers to travel to 64 other destinations in the U.S., Europe and South America. TAM was the first Brazilian airline company to launch a loyalty program. Currently, the program has over 6.1 million subscribers and has awarded more than 8.3 million tickets.

Forward-looking statements:

This notice may contain forward-looking statements. 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 in this release. These estimates are subject to changes without prior notice.

SOURCE TAM

Source: PR Newswire

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