Centrais Eletricas Brasileiras : Market Announcement - 12.29.17 - Annual Letter of Corporate Governance

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, its Board of Directors approved the Annual Letter of Public Policies and Corporate Governance 2017 in compliance with article 8, subsections I, III and VIII and paragraph 1 of Law 13,303 of June 30, 2016 and article 13, subsections I, III and VIII and paragraphs 1 and 2 of Decree No. 8.945/ 16, in order to meet the required transparency requirements legislation.

In addition, the Company, as forseen in its Business and Management Plan - PDNG 2018-2022 published on December 17, 2017, aims to obtain the stamp of the Programa Destaque em Governança de Estatais from B3 - Bolsa, Bolsa, Balcão (Corporate Governance Program for State owned Companies from B3), which forsee the disclosure of the mentioned Letter to comply with Articles 16 and 18 of the mentioned Program.

This Letter is intended for investors and the public in general and summarizes the main information contained in the Reference Form 2017, filed at CVM - Comissão de Valores Mobiliários, as commitments to the achievement of public policy objectives, activities developed, controls, economic-financial data, risk factors, corporate governance practices and description of the composition and compensation of the Company's management.

This measure reaffirms Eletrobras' commitment to continuous improvement of its governance, as well as its alignment with best practices in the market.

For more details, the Annual Letter of Public Policies and Corporate Governance 2017 is available on the Company's Investor Relations website:http://eletrobras.com/en/ri

Rio de Janeiro, December 29, 2017.

Armando Casado de Araujo CFO and Investor Relations Officer

EBR & EBR.B

LISTED

NYSE