The project's goal is to help solve challenges associated with the check-insystem, software used by employees to sell airline tickets and reserveseats on flights, and server reliability.

IBM has mobilized a team of 90 onsite professionals to support many ofTAM's departments and back office. IBM's Hortolândia Service Center,located in São Paulo, will also have a team dedicated to help desk servicesfor TAM's IT users.

The agreement, signed in August 2008, is the second large contract betweenTAM and IBM. The first one, dating from 2007, involved applicationdevelopment services.

About TAM:

TAM (www.tam.com.br) has been leading the domestic market since July 2003and has ended this September with 52.8% market share. The company flies to42 destinations in Brazil. With the commercial agreements signed withregional companies that total goes up to 79 different destinations innational territory. TAM's market participation among Brazilian airlinecompanies operating international lines was 82.1% in September. Itsoverseas operations include direct flights to 16 destinations in the UnitedStates, Europe and South America. In addition, it has codeshare agreementsthat allow sharing seats in flights with international companies, allowingpassengers to fly to 64 additional destinations in the USA, South Americaand Europe. Pioneer in the launch of a Fidelity Program for airlinecompanies in Brazil, TAM today has more than five million members and hasdistributed more than 5.9 million tickets in exchange for cashed in points.

About IBM:

For more information, visit www.ibm.com/services. A review of recentsignings is available at www.IBM.com/press/ITservices.

Media Contacts:Christiana CardosoMedia Relations, IBM BrazilPhone: (55 21) 2132-5944chrisf@br.ibm.comJenna GableIBM Media RelationsPhone : (917) 472-3512gablej@us.ibm.com