MARKET ANNOUNCEMENT


In response to Official Letter GAE 1709-14 - BM&FBovespa, in which are being required clarification relating to the news conveyed by the Agência Estado - Broadcast on May 8, 2014, stating "that the company believes it will still receive an additional R$ 15 billion in indemnifies, referring to the transmission lines prior to 2000, as well as investments in improvements of the concession assets", we hereby clarify to shareholders and the market in general the following:
In addition to our Market Announcement of April 4, 2014 Market , we reiterate that figures for balance sheet effects on the Financial Statements of Eletrobras, resulting of Law 12,783/2013 are described in the Note 2 to the Financial Statements relating to the financial year 2012, which is informed that Eletrobras recorded the amount of indemnifies of R$ 14.4 billion and holds assets relating to the extended concessions whose compensation has not yet been approved by the Grantor of approximatelly R$ 12 billion. There is an amount of R$ 3 billion that has been writen-off in the mentionet financial year that might be object of approval pursuant the regulamentation described.
The figure for the complementation of indemnifies owed to transmission and generation concessionaires who opted to extend the concession pursuant to Law 12,783/13 was subject to regulation by the National Electric Energy Agency, by ANEEL Resolution 589/2013 of December 10, 2013, resulting from the Public Hearing 101/2013, which established the criteria for calculating the New Replacement Value - VNR of existing assets on May 31, 2000 considered not depreciated ("RBSE" and "RPC") for the purpose of indemnifies of transmission concessionaries and, within the generation segment, of Normative Resolution No. 596/2013, as a result of Public Hearing 092/2013.
The calculations of indemnifies determined by ANEEL will be approved by the Union (Grantor) as well as your payment method, may occuring through indemnify or recognition in the tariffary base.

In addition to the Financial Statements for the financial year 2012, mentioned above, that amount is also part of the Notes to the Financial Statements for the year 2013, transcribed below, and, as noted, does not refer to an isolated appeal by Eletrobras, but a process underway in ANEEL concerning all generating and transmission companies of Brazil who have renewed their concessions pursuant Law 12,783/13.

Generation

31/12/2013

R$ thousand

31/12/2012

Modernizations and Improvements

1,483,540

1,483,540

Thermal Generation

1,205,289

1,684,047

Transmission

Modernizations and Improvements (RBNI)

841,814

841,814

Basic Network - existing services (RBSE)

7,490,046

7,490,046

Effect on invested CTEEP - RBSE

525,247

525,247

Total

11,545,936

12,024,694



Rio de Janeiro, May 9, 2014.

Armando Casado de Araujo

CFO and Investor Relations Officer



ELET3 & ELET6 XELTO & XELTB

EBR & EBR.B

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