Centrais Eletricas Brasileiras : Market Announcement - 09.09.2016 - AFAC

CNPJ: 00.001.180/0001-26

Centrais Elétricas Brasileiras S.A. - Eletrobras ("Company" or "Eletrobras"), hereby inform our shareholders and the market in general that, on this date, occurs the inflow of funds in the Company, in the amount of R$ 970,000,000.00 (nine hundred and seventy million reais), in form of Advances for Future Capital Increase ("AFAC") made by the controlling shareholder, Federal Government.

These resources aim to complete the sources of necessary resources for the Global Spending Program ("PDG") 2016.

As previously known by the market, Eletrobras is in corporate restructuring process, which has as main objectives: (i) reduction in the level of indebtedness; (ii) reducing operating and financial costs and expenses; (iii) economic and financial viability of the electricity distribution subsidiaries, aiming to transfer its share control by the end of 2017; (Iv) increasing the efficiency and productivity of the Company; (v) rationalization of its investments; and (vi) improving corporate governance.

In this context, the Company seeks an optimal capital structure and believes that the said the capitalization, through shareholders' resources, will contribute to does not increases the financial commitments with contract costs that would not be attractive at the moment and that could compromise efforts that are being made for aforementioned corporate restructuring.

It is important to remember that Eletrobras' generation and transmission electric energy companies will receive the receivables relating to financial revenues from transmission assets existing on May 31, 2000, called Existing Basic Network System - RBSE as MME Ordinance No. 120/2016, which will constitute an important source of revenue, but such resources may be allocated for generation and transmission's long-term investments, once these receivables will only start to be paid from July 2017.

The Company will keep the market informed about the future capitalization of mentioned AFAC, as well as the R$ 1 billion (one billion reais) AFAC held in April 2016, and should be observed on this occasion, all the formalities established in the applicable legislation.

Rio de Janeiro, September 9, 2016.

Armando Casado de Araujo