NYSSA2nd Annual Investing in Brazil Conference

New York, October 29, 2008

2

Information and ProjectionThis 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 in this communication. These estimates are subject to changes without prior notice.

This material has been prepared by TAM S.A. (“TAM“ or the “Company”) includes certain forward-looking statements that are based principally on TAM’s current expectations and on projections of future events and financial trends that currently affect or might affect TAM’s business, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in TAM’s forward-looking statements. TAM undertakes no obligation to publicly update or revise any forwardlooking statements.

This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment.

3

TAM: An ethical and Entrepreneurship history

May/1976

Beginning center-West Region and then throughout Brazil

Aug/1986

Center-North Region

May/1994

Paraguay countryside

Jun/1996

South + Center-North Regions

Aug/1996

Mercosur

Dec/1996

National and International territories

Dec/1996

National and International territories

Feb/1961

National and International territories

Feb/2008

4

TAM’s corporate structure

TAM Financial100%

TAM Capital100%

TAM Viagens99,99%

TAM Mercosur94,98%

TAM Linhas Aéreas100%

TAM Financial 2100%

TP Participações99,99%

5

0.5%

26.9%

72.6%

21.6%

19.5%

58.9%

45.5%

54.5%

53.9%

46.2%

Before IPO* 6/13/2005IPO BOVESPA

3/10/2006Follow-on Offering

BOVESPA and NYSE

June 2008

100% 100% 100% 100%

0

20

40

60

80

100%

Total Capital Paticipation

AmaroFamily***

InvestmentFunds**

Free Float

•IPO = Initial Public Offer •**Investment Funds liquidates its position at Follow-on***Amaro Family and its participations held 89.42% of TAM’s voting shares

Capital Market Participation

6

TAM is committed to high levels of corporate governance

Inform

ation Free-float

Board 100%

tag-al

ong

Investors

BR GAAP and US GAAP simultaneous, in Portuguese and English, with high level of disclosed information

CVM and SEC simultaneous

Professional Board

2 members of the family

5 independent members

Audit Committee

Sarbanes-Oxley Certification

Two classes maintained due to regulatory reasons

Same conditions concerning the sale of the company for both classes of shares

53.9% Free Float

1.5% ADTV

8 local analyst meetings and minimum 4 investor/analyst visits abroad per year

7

The leading Brazilian carrier…Long haul market

Paris 21x per week

London 7x per week

NY 14x per week

Miami 28x per week

Milan7x per week

Frankfurt 7x per week

Madrid 7x per week

Latin American market Buenos Aires

63x per week Bariloche

2x per week Cochabamba

4x per week Santa Cruz de Sierra

4x per week Santiago

10x per week Asuncion

21x per week Ciudad del Leste

7x per week Montevideo

7x per week Caracas

7x per week Lima

7x per weekDomestic market

42 destinations and through business agreements signed with regional companies, it reaches 79 different destinations in Brazil

Note: Based on Oct 2008 network

8

…with higher growth anticipated for Brazilian carriers due to the unbalance in the bilateral agreements…

Source: ANAC annual report* estimates

58.2%

41.8%

57.7%

42.3%

66.9%

33.1%

71.2%

28.8%

66.5%

33.5%

2004 2005 2006 2007 Jan - Sep2008*

0

20

40

60

80

100%

% international passenger

BrazilianCarriers

IntlCarriers

9

…observed in many countries, as the example between Brazil and USA

77

107

147

2821

357

10542

I taly

England

Germany

France

Spain

USA

1414

1414

2121

3030

5151

126*126*

150 100 50 0 50 100 150

Weekly Frequencies

* 21 frequencies limited to the cities in the north, northeast and central west regions of Brazil and/or Belo Horizonte

Brazilian Carriers Foreign Carriers

Available space on bilateral Operated by Brazilian Carriers Operated by Foreign Carriers

10

Our mix of international revenue reduced due to the appreciation of Real and increase of domestic yield

34%

66%

31%

69%

2Q07 2Q080

20

40

60

80

100%

Revenue(Passenger + Cargo)

Dollarexchangerate

DomesticInternational

1.926

63%37%

1.592

62%38%

Approximately 50% of our costs

(including fuel) are exposed to foreign

currencies

-17%

ASK proportion

International(Dollar denominated)

Domestic(Real denominated)

11

J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A S405060708090

100110120130140150160

Market - Variation(vs previous period)

PreviousPeriod

DomesticMarket

InternationalMarket

Both international and domestic markets continue to grow

20072005 2006 2008Domestic

International

19%7%

12% -30%

12% -5%

10%* 36%*

Source: ANAC* Accumulated until September

12

We are both domestic and international market leaders

TAM’s Domestic Market Share*

Source: ANAC* RPK – Revenue passenger kilometer

TAM’s International Market Share* – Among Brazilian carriers

33.0%35.8%

48.0% 48.9% 50.2% 52.4% 52.8%

43.5%

2003 2004 2005 2006 2007 Jan - Sep 2008 3Q08 Sep/08

12.0% 14.3%

37.5%

67.5%72.4% 75.8%

82.1%

18.8%

2003 2004 2005 2006 2007 Jan - Sep 2008 3Q08 Sep/08

13

No. take-offs (K)

Load Factor

- LF Dom

- LF Int

Aircraft Utilization (block hrs/day)

- Narrow bodies

- Wide bodies

2003

76 147

61%58%71%

7.6

5.87.3

TAM S.A. 2004

75159

66%64%71%

8.9

6.9

12.6

2005

81 210

71%70%73%

11.4

10.2 14.1

2006

93245

74%73%76%

12.7

12.6

15.1

No. operating aircraft

2002

102 219

55%53%61%

9.5

9.2 10.0

2007

110261

70%70%71%

12.6

12.6

15.8

Jan-Jun2008

115135

72%69%77%

12.6

12.3

14.8

We have improved our operational metrics…

14

…impacting our financial metrics

Net revenues

EBITDAR

% EBITDAR

EBIT

% EBIT

Net Income

% Net Income

2002

3,429

475 13.9%

(236)-6.9%

(606)-17.7%

2003

3,667

775 21.1%

(32)-0.9%

174 4.7%

2004

4,520

1,039 23.0%

295 6.5%

341 7.6%

2005

5,649

1,140 20.2%

426 7.5%

187 3.3%

2006

7,345

1,817 24.7%

996 13.6%

612 8.3%

BR GAAP 2007

8,151

1,259 15.5%

261 3.2%

129 1.6%

Jan-Jun2008

4,775

57212.0%

85 1.8%

531.1%

15

Our balance sheet remains solid R$ million - BRGAAP 2008* 2007 2006 2005 2004

Cash (1) 2.009 2.607 2.453 995 297

Short-Term Debt (2) 837 1.005 363 216 204

Long-Term Debt (3) 1.301 1.345 895 425 399

Total Debt (A) = (2) + (3) 2.138 2.350 1.258 641 603

Shareholder's Equity (4) 1.539 1.527 1.449 760 191

Capitalization (B) = (3 + 4) 2.839 2.872 2.344 1.185 590

Aircraft and flight equipment leases** (5) 6.193 5.976 5.032 4.389 4.557

Total Debt Adjusted (C) = (A + 5) 8.331 8.326 6.290 5.030 5.160

Total Capitalization Adjusted (D) = (3 + 4 + 5) 9.032 8.848 7.376 5.574 5.147

Debt / Capitalization (A / B) 75% 82% 54% 54% 102%

Adjusted Debt / Adjusted Capitalization (C / D) 92% 94% 85% 90% 100%

Adjusted Net Debt / Adjusted Capitalization (C - 1) / (D) 70% 65% 52% 72% 94%

* LTM** Aircraft and flight equipment leases of the last twelve months x 7

16

Debt deals

Debentures – R$ 500 million (September 2006) Subscription of 50,000 nominative, registered, non convertible

debentures with a nominal unit value of R$ 10 thousand 6 years term with the first payment in 2010

Bonds – US$ 300 million (April 2007) 7.375% Senior Notes due 2017

Loan agreements to finance pre-delivery payment Calyon and other banks to finance up to US$ 331 million for 4

B777-300ERs BNP Paribas to finance up to US$ 117 million for 30 Airbus aircraft

until 2010 Guaranties to support the financing of aircraft

Ex-Im Bank for the Boeing fleet ECAs for the Airbus fleet

17

We are beginning to evaluate new potential business units in the company

TAM Linhas Aéreas

MRO(São Carlos)

Loyalty Program HandlingCargo

Already structured as a business unit with focus in maximizing assets

None or little focus on selling services to third-parties

Not structured as business units

18

Maintain leadership in both domestic and international markets

ASK growth of Domestic 14% International 40%

Average load factor at approximately 70% overall

Reduction of 7% in total CASK ex-fuel in BR GAAP yoy

Three additional international destinations or frequencies in 2008

Domestic market demand growth from 8% to 12% (in RPK terms)

2008 Guidance

We are delivering the guidance committed with investors

TAM

Market

Jan – Sep 2008

10.2%

50.2% dom72.4% intl

14.2%32.2%72.1%-4.5%*

* Accumulated from January to June, 2008** In final approval phase by ANAC

Brasília – Buenos Aires Rio de Janeiro – Miami São Paulo – Lima Rio de Janeiro – NY** São Paulo – Orlando**

19

Our growth plan is supported by a flexible fleet plan

3

14

88

10

4416

101

4418

104

4420

110

44

22

113

84

22

115

2007 2008 2009 2010 2011 2012

115125 130

138 143 149

0

50

100

150

Total fleet

B777 MD11 Airbus wide-body Airbus narrow-body F100

Since dec/07 we

are monofleet in

domestic operations

B767

20

21

Brazilian domestic market has high growth potential

Boardings per capita

Boardings per capita, adjusted by GDP per capita at PPP

Source: World Bank Data, Credit Suisse Research as of 2006

Annual Trips / Person

1.70

1.85

2.32

0.62

0.60

0.55

0.50

0.82

Japan

US

Argentina

Chile

Mexico

Russia

Brazil

Germany

100107.3 111.4

117.4100

140.6

157.6

100

121.2

175.4

228.2

256.8

104.9

176.4

112.0

2003 2004 2005 2006 2007

Market’s RPK

GDP

TAM’s RPK

Growth of Brazilian Domestic Market

22

High concentration of passengers in 11 airports

Source: ANAC

Important barrier to entry for newcomers

Limited ability for other competitors to grow

11 main airports in Brazil carry 72% of all passenger traffic

TAM has in aggregate ~40% of all slots available in these airports

% TAM slots

43%

34%

39%

32%

44%

42%

27%

26%

40%

32%

46% Fortaleza

Rio de Janeiro4

Recife

Curitiba

Porto Alegre

Belo Horizonte

Salvador

Rio de Janeiro³

Brasília

São Paulo²

São Paulo¹

% Total Domestic Passengers Boarded

0% 5% 10% 15% 20%

20062007

1 Congonhas2 Guarulhos3 Galeão4 Santos Dumont

23

As Brazil becomes “stable”, the leisure segment will become increasingly more important

Leisu

reBu

sines

s

2000 2001 2002 2003 2004 2005 2006 2007

17.9

26.6 27.0 25.228.2

35.439.7

44.4

0

10

20

30

40

50

Domestic Market Passenger Mix (RPK M)

CAGR

11%

22%

Traveling is one of the top “desire” items for consumption

* TAM Estimates

24

We will be expanding our fare bundle strategy for the domestic market in 2008... Addition of extra

features in the segmented bundles

Ability to “sell up” categories Potential for

further revenue increase

Harmonization of the fare bundle strategy to TAM Fidelidade growth

25

...increasing capillarity of sales through our new methods of payments... Launched new methods of payment in May 2007

Payment at lottery stores Approximately 9,000 stores in Brazil Already functioning as bank correspondent

Billing slips Automatic debit Financing for passengers via direct consumer credit with

the main retail banks

Focus on leisure/lower income segments

26

...optimizing the utilization of our aircraft on off peak hours

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2355

60

65

70

75

80%

Load Factor per hour

2Q08Oct 2007

Off Peak Peak Off Peak Peak Off Peak