Santiago, Chile, October 6, 2016 – LATAM Airlines Group S.A. and its affiliates ("LATAM Airlines Group" or the "Company") (NYSE: LFL / IPSA: LAN), the leading airline group in Latin America, announced today that LATAM Finance Limited (the "Issuer"), an exempted company incorporated in the Cayman Islands with limited liability and wholly owned by LATAM Airlines Group S.A., intends to offer (the "Offering") Senior Notes (the "New Notes"). The New Notes will be unconditionally and irrevocably guaranteed by LATAM Airlines Group S.A. (the "Guarantor").

A portion of the Notes will be used to refinance the existing 7.375% Senior Guaranteed Notes due 2017 of TAM Capital Inc. (the "2017 Notes") and 8.375% Senior Guaranteed Notes due 2021 of TAM Capital 3 Inc. (the "2021 Notes").  As part of the refinancing, Citigroup Global Markets Inc. (the "Offeror") has launched a cash tender offer (the "Tender Offer") for up to U.S.$462,500,000 aggregate principal amount (subject to increase by the Offeror, the "Aggregate Maximum Tender Amount") of the outstanding 2017 Notes and 2021 Notes, subject to (i) purchase in accordance with the acceptance priority level, (ii) a tender cap on the 2021 Notes of U.S.$262,500,000 (the "2021 Notes Tender Cap") and (iii) possible proration, as described in the Offer Documents (as defined below). Any remaining proceeds from the New Notes sold in the Offering that are not exchanged for 2017 Notes and/or 2021 Notes will be used for general corporate purposes.