Centrais Eletricas Brasileiras : Market Announcement - 12 26 17 - New Hire HL

MARKET ANNOUNCEMENT

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general that, on December 19, 2017, it signed a new agreement with the North American law firm Hogan Lovells, aiming at the closing of the independent investigations and resolution of the matter before the US Department of Justice ("DOJ") and Securities Exchange Commission ("SEC").

The contractual scope, previously discussed with the Independent Commission for Research Management (Comissão Independente de Gestão da Investigação - "CIGI"), SEC and DOJ, contemplates the finalization of the investigation procedures that have been initiated and are not yet concluded, the monitoring of remediation measures, especially the implementation of the compliance program, as well as the necessary interactions with the Brazilian and US authorities, with a view to resolving ongoing investigation actions.

The total value of the agreement is up to R$ 42,874,779.85 (forty-two million, eight hundred and seventy-four thousand, seven hundred and seventy-nine reais and eighty-five cents), encompassing all fees and expenses of the US law firm and its subcontractors. The period of execution of the services will be a maximum of 8 (eight) months, or until the completion of the scope contracted, and consequently, the termination of the investigative action, whichever occurs first.

After the termination of the independent investigative action, all new issues related to the matter that may arise will be conducted by the Compliance Board.

Rio de Janeiro, December 26, 2017.

Armando Casado de Araujo CFO and Investor Relations Officer

EBR & EBR.B

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