MARKET ANNOUNCEMENT

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Companhia" or "Eletrobras") hereby informs its shareholders and the market in general that it received on July 11, 2018, from the Securities and Exchange Commission, Official Letter No. 266/2018/CVM/SEP/GEA-1, requesting clarifications regarding the news published in the newspaper "O Estado de São Paulo", Economy & Business section, under the heading: "Maia buries the Draft-bill of the Eletrobras sale", which includes the information transcribed at the end of this annoucement.

Related to the above mentioned Official Letter, we clarify that:

1 - The Draft Bill on the privatization of Eletrobras, No. 9.463/2018, on the initiative of the Government, was presented for consideration by the National Congress on January 22 2018.

2 - The progress of said Draft Bill begins in the lower house and follows the proper rite of the legislative process, according to internal rules of each House of National Congress.

3 - In the case of a public procedure of simultaneous knowledge by all citizens, the Company does not have differentiated access to information regarding advances and setbacks in the appraisal of draft bills. Therefore, Eletrobras does not hold any information supplementary to those disclosed in the media, and that justifies, in the manner recommended by the pertinent regulations, the disclosure of relevant fact occurred within the scope of its social businesses.

Rio de Janeiro, July 12, 2018.

Armando Casado de Araujo CFO and Investor Relations Officer

EBR & EBR.B

LISTED

NYSE

MARKET ANNOUNCEMENT

Official Letter No. 266/2018/CVM/SEP/GEA-1

Rio de Janeiro, July 11, 2018.

"Subject: Request for clarification on news. Mr. Director,

  • 1. In reference to the news published on this date, in O Estado de São Paulo newspaper, Economy & Business section, under the heading: "Maia buries Draft bill from sale of Eletrobrás" which includes the following statements:

    The president of the lower house, Rodrigo Maia (DEMRJ), said yesterday that he will no longer set the Eletrobrás unbundling bill this year. This project concerns the holding company, which owns plants, transmission lines and distributors, in addition to holding interests in Specific Purpose Companies. "We will not vote on the Eletrobrás bill this year," he said.

  • 2. In this regard, we request a statement from the company regarding the veracity of the news and, if so, explain the reasons why it was not considered a material fact, as well as comment on other information considered important on the subject.

3.

Such manifestation shall occur through the Empresa.net System, category: Notice to the Market, type: Clarification on CVM/B3 inquiries, subject: News Published in the Media, which should include the transcription of this letter.

4. We would like to point out that, according to the Superintendence of Corporate

Relations, in the use of its legal attributions, and based on item II of article 9, Law 6,385/76, and CVM Instruction 452/07, of a fine of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions, for failure to comply with the requirement contained in this letter, sent exclusively by e-mail, up to July 12 2018, provided for in the sole paragraph of art. 6 of CVM Instruction 358/02."

EBR & EBR.B

LISTED

NYSE

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Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 12 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 July 2018 21:59:02 UTC