Alvarez & Marsal Hired by Varig to Advise Brazilian Airline on Restructuring Process

NEW YORK--March 17, 2006--Global professional services firm Alvarez & Marsal, which specializes in turnarounds and restructurings, announced it has been hired by Varig, the largest Latin American airline, as chief restructuring advisors to work with the company's management and board as it moves forward with the restructuring process.

The decision to retain a professional restructuring firm was initiated by Varig's creditors and the selection process followed strict technical criteria. Alvarez & Marsal was chosen from among a group of firms based on its long history of successful restructurings and its professional team's specific experience with other distressed airlines including US Airways and AeroMexico.

"Our team of international professionals will bring our extensive experience in turnarounds and restructurings to bear as we work closely with Varig's senior executive team, who will remain in their current positions," said Marcelo Gomes, a Brazil-based managing director at Alvarez & Marsal. "We do not expect the restructuring process to disrupt the ongoing operations and administration of the company."

Alvarez & Marsal professionals will not assume official interim management roles. Varig president Marcelo Bottini and all current directors will remain in their current positions at the company.

Luis Delucio, a director at Alvarez & Marsal, will serve as co-chief restructuring advisor along with Mr. Gomes. Both will report directly to Mr. Bottini and Varig's board of directors.

Alvarez & Marsal

Alvarez & Marsal is a leading global professional services firm with expertise in guiding underperforming companies and public sector entities through complex financial, operational and organizational challenges. The firm employs a distinctive hands-on approach by working closely with clients, management and stakeholders to resolve problems and implement solutions. Founded in 1983, Alvarez & Marsal draws on its strong operational heritage to provide specialized services, including: Turnaround and Management Advisory, Crisis and Interim Management, Performance Improvement, Creditor Advisory, Global Corporate Finance, Dispute Analysis and Forensics, Tax Advisory, Business Consulting, Real Estate Advisory and Transaction Advisory. A network of experienced professionals in locations across the US, Europe, Asia and Latin America, enables the firm to deliver on its proven reputation for leadership, problem solving and value creation.

For more information, visit www.alvarezandmarsal.com or contact: Chief Marketing Officer Rebecca Baker at +1 212 759 4433, or e-mail rbaker@alvarezandmarsal.com.