8d014d66-69e2-48a2-9943-8ba19568b95e.pdf



MARKET ANNOUNCEMENT


We hereby inform our shareholders and the market in general that Eletrobras received, on 26 October 2015, Official Letter No. 430/2015/CVM/SEP/GEA-1 from the Comissão de Valores Mobiliários ('CVM'), requesting clarification as to an item published in Epoca magazine on October 26, 2015 under the headline 'High Voltage.' The news item asserted that an internal commission at Eletrobras had discovered that Eletrobras had transferred funds without supporting invoices in connection with the construction of the Tumarín hydroelectric plant in Nicaragua. Epoca also reported that Eletrobras was developing the project in partnership with the Nicaraguan government and the construction company Queiroz Galvão.


In response to the Official Letter in question, the Company makes the following clarifications to its shareholders and the market:


  1. Eletrobras participates in the Tumarín hydroelectric Project through the special purpose company Centrales Hidroléctricas de Centroamerica S.A. ('CHC'), whose subsidiary is the special purpose company Centrales Hidroeléctricas de Nicaragua SA ('CHN'). Eletrobras holds 50% (fifty percent) of the shares of CHC, and the company Queiroz Galvão also holds 50% (fifty percent);


  2. CHC and CHN are private companies, headquartered in Panama and Nicaragua respectively, and are governed by the laws of those countries;


  3. In March 2015, during a routine check of contractual procedures at CHN, Eletrobras's internal audit function determined that certain services for the Tumarín hydroelectric project had been performed before the relevant contractual agreements had been signed. We believe this practice to be permissible for private companies such as CHN and CHC. Nonetheless, Eletrobras's internal audit department recommended that the management of CHN avoid this practice in the future;


  4. In contrast to what Epoca reported, Eletrobras's internal auditors did not discover funds transfers unsupported by appropriate documentation in connection with the Tumarín project.


We are at your disposal, through our investor relations area, to provide any clarification in relation to this announcement.


Rio de Janeiro, October 27, 2015.


Armando Casado de Araujo

CFO and Investor Relations Officer



ELET3 & ELET6

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