TAM announces pricing of a US$500 million offering of senior notes

Sao Paulo, May 26, 2011 – (BM&FBOVESPA: TAMM4/NYSE: TAM) – TAM hereby announces that it has concluded pricing terms for a new offering of US$500 million 8.375% senior guaranteed notes due 2021 (the “notes”). The issuer of the notes will be TAM Capital 3 Inc. and the notes will be guaranteed by TAM S.A. and TAM Linhas Aéreas S.A. The expected settlement date is June 3, 2011. The net proceeds will be used for (i) payment of maturing debt, (ii) pre-delivery payments, and (iii) general corporate purposes.