MARKET ANNOUCEMENT

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

OPEN COMPANY

Centrais Elétricas Brasileiras S/A ("Company" ou "Eletrobras") hereby informs its shareholders and the market in general that it received from the Brazilian Securities and Exchange Commission ("CVM"), on July 18, 2018, Official Letter No. 1459/2018-SAE, as transcribed below, requesting clarification regarding the subject matter by the newspaper Valor Econômico, on July 18, 2018, under the title "Court suspend injunction against auction."

Transcript of the Official Letter No.1459/2018-SAE

Ref.: Request for clarification on news in the press

Dear Sirs,

In news published by the newspaper Valor Econômico on July 18, 2018, under the title "Court suspend injunction against auction", it is stated, among other information, that the injunction was suspended that prevented the auction of the six energy distribution companies offered for sale by Eletrobras .

We request clarification on the item that was marked up to 07/18/2018, with your confirmation or not, as well as other information considered important.

Thus, in compliance with the official letter in reference, the Company hereby informs the following:

  • 1. The Company issued a market Annoucement on July 12, 2018, which made reference to the public civil action (process No. 0076545-15.2018.4.02.5101 (2018.51.01.076545-3)), proposed by the Association of Employees of Eletrobras - ("Aeel"), in the face of the National Bank of Economic and Social Development ("BNDES"), towards the 19th Federal Court of Rio de Janeiro, in which was deferred emergency protection to suspend the bidding process of 6 (six) Eletrobras distribution companies: Companhia Boa Vista Energia S.A., Companhia Energética de Alagoas, Companhia Energética do Piauí, Centrais Elétricas de Rondônia S.A., Companhia de Eletricidade do Acre S.A. and Amazonas Distribuidora de Energia, and that due to the decision rendered on July 12, by the 19th Federal Court of Rio de Janeiro, the BNDES had disclosed, the relevant communication no. 02/2018, which suspended sine die the auction announcement No. 2/2018- PPI/PND;

  • 2. On July 17, 2018, we became aware of the injunction suspension No. 0007573-67.2018.4.02.0000, suspending the effects of the injunction rendered in Case No. 0076545-15.2018.4.02.5101 (2018.51.01.076545-3) by the president of the Federal Regional Court of the 2nd Region (TRF-2).

EBR & EBR.B

LISTED

NYSE

MARKET ANNOUCEMENT

  • 3. The BNDES disclosed, on this date, the Notice of Resumption, rendering null the Relevant Notice No. 2 of July 12, 2018, with the consequent resumption of AUCTION No. 2/2018-PPI/PND keeping the original schedule in the Auction Notice related to Companhia Energética do Piauí ("Cepisa") privatization.

  • 4. Finally, we clarify that Eletrobras monitored the scope and possible impacts of these decisions on the privatization process of the distribution companies, adopting all necessary measures to safeguard the continuation of the privatization process;

  • 5. The information officially available to the Company has been adequately disclosed through channels established by applicable Brazilian and foreign laws and filed with the Brazilian Securities and Exchange Commission - CVM, U.S. Securities and Exchange Commission - SEC, The New York Stock Exchange - NYSE and Madrid Stock Exchange - Latibex, as well as being available on the Eletrobras website (www.eletrobras.com/ri).

Rio de Janeiro, July 18, 2018.

Armando Casado de Araujo CFO and Investor Relations Officer

EBR & EBR.B

LISTED

NYSE

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Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 18 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 July 2018 23:11:06 UTC