Santiago, Chile, October 5, 2016 – LATAM Airlines Group S.A. ("LATAM Airlines Group" or the "Company") (NYSE: LFL / IPSA: LAN / Bovespa: LATM33), its affiliates, TAM Capital Inc. (the "2017 Notes Issuer"), TAM Capital 3 Inc. (the "2021 Notes Issuer" and, together with the 2017 Notes Issuer, the "Issuers") and Citigroup Global Markets Inc. (the "Offeror" or the "Dealer Manager") today announced the commencement of an offer by the Offeror to purchase for cash (the "Tender Offer") up to U.S.$462,500,000 aggregate principal amount (subject to increase by the Offeror, the "Aggregate Maximum Tender Amount") of the outstanding 7.375% Senior Guaranteed Notes due 2017 (the "2017 Notes") of the 2017 Notes Issuer and 8.375% Senior Guaranteed Notes due 2021 (the "2021 Notes") of the 2021 Notes Issuer, subject to purchase in accordance with the acceptance priority level for each series of Notes set forth in the table below (the "Acceptance Priority Level") and possible proration as described in the Offer Documents (defined below). The 2017 Notes and the 2021 Notes are guaranteed by TAM S.A. and TAM Linhas Aéreas S.A. (the "Guarantors"). The Tender Offer is being made by the Offeror on behalf of the Issuers pursuant to the offer to purchase dated October 5, 2016 (the "Tender Offer") and the related letter of transmittal (the "Letter of Transmittal" and, together with the Tender Offer, the "Offer Documents"). The principal purpose of the Tender Offer is to acquire up to the Aggregate Maximum Tender Amount of the outstanding Notes.