TAM Releases 4Q06 Results

SAO PAULO, Brazil, March 21 /PRNewswire-FirstCall/ -- TAM S.A. (BOVESPA: TAMM4) released its results for the fourth quarter 2006 (4Q06) today. The information is available on the company's website: http://www.tam.com.br/ri, and through the CVM (Comissao de Valores Mobiliarios) and SEC (Securities and Exchange Commission). The conference calls in Portuguese and English will be Friday, March 23, at 10:00 a.m. and 11:30 a.m. (Eastern Time), respectively. In addition, TAM will hold meetings with analysts and investors in Sao Paulo and Rio de Janeiro on April 4.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO )

Income statements in BR GAAP and US GAAP are presented hereafter. For more information please visit our website: http://www.tam.com.br/ri

Income Statement BR GAAP - 4Q06 vs 4Q05 4th quarter BR GAAP In cents of R$ per ASK In millions of R$ 2006 2005 Variation 2006 2005 Variation (%) (%) Net operational income 19.28 20.58 -6.3 1,946.6 1,581.9 23.1 Cost of services and operational expenses Fuel (5.45) (6.51) -16.2 (550.7) (500.3) 10.1 Selling and marketing expenses (2.32) (2.80) -16.9 (234.7) (215.0) 9.1 Aircraft and equipment leasing (1.74) (2.10) -17.1 (175.8) (161.5) 8.8 Personnel (2.68) (2.54) 5.6 (270.4) (195.0) 38.7 Maintenance and reviews (except personnel) (1.02) (1.14) -10.7 (103.2) (88.0) 17.2 Outsourced services (1.39) (1.27) 9.4 (140.2) (97.5) 43.7 Landing, take-off and navigation charges (0.88) (0.86) 2.2 (88.4) (65.9) 34.2 Depreciation and amortization (0.29) (0.29) 1.0 (29.5) (22.3) 32.6 Aircraft insurance (0.08) (0.12) -33.5 (8.3) (9.6) -12.7 Others (1.12) (1.14) -2.3 (112.8) (87.9) 28.3 Total cost of services and operational expenses (16.98) (18.77) -9.6 (1,714.1) (1,443.0) 18.8 Gross profit 2.30 1.81 27.5 232.5 138.9 67.4 Financial income (expense) 0.25 (0.12) 25.5 (9.4) Other operating expenses, net (0.64) (0.21) 199.0 (64.9) (16.5) 292.8 Operating income (loss) 1.91 1.47 30.2 193.0 112.9 71.0 Non-operating results, net (0.00) 0.00 (0.2) 0.2 Income (loss) before income and social contribution taxes 1.91 1.47 29.8 192.9 113.1 70.5 Income tax and social contribution (0.74) (0.62) 18.3 (74.6) (48.0) 55.3 Income (loss) before minority interest 1.17 0.85 38.3 118.3 65.1 81.7 Minority interest (0.00) 0.00 (0.3) 0.2 -267.7 Reversal of interest on equity 0.17 0.00 16.9 0.0 Net income (loss) for the period 1.34 0.85 57.3 134.9 65.3 106.6 EPS (R$) 0.90 0.45 97.7 EPADS (USD) 0.42 0.19 116.4 Income Statement US GAAP - 4Q06 vs 4Q05 US GAAP In cents of R$ per ASK In millions of R$ 2006 2005 Variation 2006 2005 Variation (%) (%) Operational Income Flight revenue 18.81 20.67 -9.0 1,899.6 1,589.2 19.5 Domestic 12.73 15.29 -16.7 1,285.3 1,175.3 9.4 International 4.63 3.80 21.7 467.4 292.4 59.8 Cargo 1.45 1.58 -8.0 146.9 121.5 20.9 Other operating sales and/or services revenues 1.36 0.69 97.0 137.3 53.1 158.7 Sales deductions and taxes (0.89) (0.98) -9.2 (90.1) (75.6) 19.2 Net operational income 19.28 20.38 -5.4 1,946.8 1,566.7 24.3 Cost of services and operational expenses Fuel (5.45) (6.51) -16.2 (550.7) (500.3) 10.1 Selling and marketing expenses (2.30) (2.80) -17.7 (232.6) (215.0) 8.2 Aircraft and equipment leasing (0.89) (1.01) -12.2 (89.9) (78.0) 15.3 Personnel (2.71) (2.50) 8.4 (273.4) (192.1) 42.3 Maintenance and reviews (except personnel) (1.02) (1.14) -10.7 (103.2) (88.0) 17.2 Outsourced services (1.38) (1.27) 8.9 (139.6) (97.6) 43.1 Landing, take-off and navigation charges (0.88) (0.86) 2.2 (88.4) (65.9) 34.2 Depreciation and amortization (0.53) (0.70) -23.9 (53.7) (53.7) 0.0 Aircraft insurance (0.08) (0.12) -33.5 (8.3) (9.6) -12.7 Others (1.77) (1.41) 24.9 (178.4) (108.8) 64.1 Total cost of services and operational expenses (17.02) (18.33) -7.1 (1,718.3) (1,408.9) 22.0 Gross profit 2.26 2.05 10.2 228.5 157.8 44.8 Financial income (expense) 0.27 (2.97) 27.7 (228.2) Income (loss) before income and social contribution taxes 2.54 (0.91) -377.4 256.2 (70.3) -464.3 Income tax and social contribution (0.89) 0.29 -405.5 (90.1) 22.4 -501.3 Income (loss) before minority interest 1.65 (0.62) -364.2 166.1 (47.9) -447.0 Minority interest (0.00) (0.00) (0.2) (0.1) Net income (loss) for the period 1.64 (0.62) -363.2 165.9 (48.0) -445.7 EPS (R$) 1.10 (0.33) -430.8 EPADS (USD) 0.52 (0.14) -462.1 Investor Relations Contact: Press Agency Contact: Phone: (55) (11) 5582-9715 Phone: (55) (11) 5582-8167 Fax: (55) (11) 5582-8149 Fax: (55) (11) 5582-8155 invest@tam.com.br tamimprensa@tam.com.br 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 three years, and held a 47.3% domestic market share and 61.0% international market share at the end of February 2007. TAM operates regular flights to 48 destinations throughout Brazil. It serves 75 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 3.8 million subscribers and has awarded more than 4.2 million tickets.