Alpargatas : Cancellation of shareholders' meetings

Publicly-Held Company

Corporate Taxpayer's ID (CNJP): 61.079.117/0001-05 Company Registry (NIRE): 35.300.025.270

Alpargatas S.A. ("Alpargatas" or "Company"), pursuant to Law 6,404, of December 15, 1976 ("Brazilian Corporation Law"), as amended, and article 2 of Instruction 358 of the Brazilian Securities and Exchange Commission ("CVM"), of January 3, 2002, hereby informs its shareholders and the market in general that, in light of the manifestation of dissent by minority shareholders owners of a relevant interest in the Company's non-voting capital in interactions with representatives of the Company from the exchange ratio of one point three tenths (1.3) preferred shares to one (1) common share, proposed by the controlling shareholder within the context of the approval of the Company's migration to the Novo Mercado segment, the controlling shareholder asked the Company to cancel (i) the special meeting of preferred shareholders and the extraordinary shareholders' meeting that would be held on June 2, 2017, at 10:00 a.m. and 11:00 a.m., respectively (jointly, "Meetings"), and (ii) the Company's migration process to the Novo Mercado segment of B3 - Brasil, Bolsa, Balcão (new name of BM&FBOVESPA S.A. Bolsa de Valores, Mercadorias e Futuros).

The Company's Board of Directors, at a meeting held on this date, approved the cancellation of the Meetings and of the Company's migration process to the Novo Mercado segment.

The call notices of the Meetings published in the São Paulo State Official Gazette and in the Valor Econômico newspaper on May 3, 4 and 5 2017 are therefore cancelled.

The Company will keep its shareholders and the market in general informed of any developments on the matters in this Material Fact.

São Paulo, May 23, 2017.

Investor Relations Officer