LanChile S.A. Reduces Costs

LanChile S.A. (“LanChile” or “the Company”) (NYSE: LFL), Chile’s largest domestic and international passenger and air cargo carrier, announced today that on March 25, 2003, its Board of Directors approved amendments to some of its aircraft lease agreements with regard to their terms, lease rentals and redelivery conditions. These amendments will signify a reduction in operating expenses for the next five years. The Company expects this reduction to amount to US$ 15 million in 2003.