LanChile Capital Increase Approved At Extraordinary Shareholder Meeting

Yesterday, at an Extraordinary Shareholder`s Meeting, the shareholders of LanChile S.A., (“LanChile” or “the Company”) (NYSE: LFL) Chile`s largest domestic and international airline, approved a capital increase for US$120 million. The exact price (as well as other conditions) for the offering will be determined by the Company`s Board of Directors at a later date.

The additional capital will be used to finance both the new Airbus A320 / A340 passenger fleet and the new Boeing 767-300 freighter fleet using a mixture of debt and equity.