Guidelines focus on transparency, internal controls, and improved selection and evaluation of administrators. SOEs that sign up will receive due recognition 04/02/2015

São Paulo, April 2, 2015 - BM&FBOVESPA announced today the launch of initiatives to enhance the corporate governance of state-owned enterprises. The initiatives are backed by CVM (Comissão de Valores Mobiliários), Brazil's securities and exchange commission, and are meant for SOEs in general, whether wholly or partly owned by the federal government or states and cities, and whether or not they are listed on the stock exchange. The idea is that they sign up to the program voluntarily.

The program is based on three principles: credibility, given the need to rebuild investor confidence in SOEs; alignment of interests, fostering a shared focus for government, investors, employees and society as a whole; and best practice in corporate government, using the tools developed for this purpose over time. Its action will also be developed along three main lines: more transparent disclosure of information to shareholders, implementation or enhancement of internal controls, and improved mechanisms for selecting, appointing and evaluating administrators.

All the initiatives will be submitted to a closed hearing, which will be convened in late April. Meetings will be held during the hearing with market participants, government officials, controllers and SOEs to discuss BM&FBOVESPA's preliminary thoughts about the three main lines of action. BM&FBOVESPA plans to publish the State-Owned Enterprise Governance Program (Portuguese-language acronym PGOVE) by end-June, after the closed hearing is over.

The program also includes a mechanism for recognizing SOEs that sign up to it, and for those that effectively implement its corporate governance measures. Recognition will be recommended by the SOE Governance Advisory Committee and awarded by BM&FBOVESPA via events such ringing the bell on the floor of the exchange, among others. Every time an SOE signs up to the program, its joining will be announced through all channels of BM&FBOVESPA and participants. It is important to note that the staff of BM&FBOVESPA's Issuer Regulation Department will verify that measures have effectively been implemented and perform follow-up monitoring.

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