Centrais Eletricas Brasileiras : Market Announcement 204 208 220-2016.pdf

FAX PARA AS BOLSAS CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 COMPANHIA ABERTA

The Company hereby informs its shareholders and the market in general that it has received: (i) on May 17, 2016, the Official Letter of the Comissão de Valores Mobiliários ("CVM") No. 204/2016/CVM/SEP/GEA-1, requesting clarification regarding the news published by the newspaper "Valor Econômico", as transcribed below; (Ii) on May 18, 2016, the Official Letter of the CVM No. 218/2016/CVM/SEP/GEA-1, requesting clarification regarding the news published by the news agency "Globo.com" with the heading "Trading of Eletrobras's shares on the New York Stock Exchange is suspended", as transcribed below; (Iii) on May 18, 2016, the Official Letter of the CVM No. 220/2016/CVM/SEP/GEA-1, requesting clarification regarding the news published by news agency "AE NEWS" with the heading "NYSE: Trading in Eletrobras`shares is suspended for lack of Formuláro 20-F", as transcribed below.

In relation to the three Oficial Letters, which all cover the same subject, the Company hereby clarifies to its shareholders and the market in general the following:

1. Through the Material Fact published on May 17, 2016, Eletrobras duly informed the market that, for reasons outside its control and efforts, it was unable to timely file its 2014 and 2015 Forms 20-F, and accordingly, the New York Stock Exchange ("NYSE") suspend trading of the American Depositary Shares ("ADS") issued by the Company and listed on the NYSE (ticker EBR and RBR-B) while it commences the delisting process;

2. On May 18, 2016, Eletrobras received a notification form the NYSE stating that the negotiation of the ADS was suspended as of this date, and that Eletrobras has a period of ten (10) business days to a notice of its intention to appeal the decision to the Committee of the Board of Directors of NYSE and indicate whether to present, at a data yet to be scheduled, oral arguments to the committee. In order to do so, the Company has to pay an application fee of US$20,000 (twenty thousand U.S. dollars).

3. The Company intends to file the appealas mentioned in the Material Fact published on May 17, 2016;

4. The Company informs that as of tomorrow the ADS may be traded in the Over the Counter market ("OTC"), with the the following tickers:

   ADS of Preferred Shares: CUSIP: 15234Q108 (OTC ticker: EBRBY) ADS of Common Shares: CUSIP: 15234Q207 (OTC ticker: EBRYY)

5. Also as mentioned in the same Materia Fact, neither the financing agreements nor the notes issued by the Company contain any covenants regarding the delisting on the NYSE.

6. The Company is also not aware of any working group set up to evaliate the potential capitalization of the Company.

7. Eletrobras also clarifies that, as of this date, it is in compliance with its financing agreements to its creditors holders of international bonds.

   Rio de Janeiro, May 18, 2016.

   Armando Casado de Araujo

   CFO and Investor Relation Officer

   [Free translation of the Official Letter CVM 218/2016/CVM/SEP/GEA-1]

   "Subject: News about clarification requested

8. We refer to the article published today in the news portal Globo.com, under the title " Eletrobras's shares trading on the NY stock exchange is suspended" which contains the following statement:

   The negotiation of Eletrobras's shares was suspended on the New York Stock Exchange (NYSE) on Wednesday (18), after the Company reported on the previous day that wouldn´t file Eletrobras' annual audited reports Form 20- F for the years ended December 31, 2014 and 2015 to the US authorities.

9. In view of the above, we determine that you clarify whether the news are true, and, if confirmed its veracity, shall explain the reasons which understood that it is not a Relevante Fact.

1. This document should be placed through the Empresa.NET System, category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, which should include a transcript of this Official letter.

2. We alert that the order of the Superintendence of Corporate Relations, in exercise of its legal powers and on the basis of section II of Article 9 of Law 6,385/76 and CVM Instruction No. 452/07, it will be the determination application of punitive fine in the amount of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions for non-compliance with the requirement contained in this notice within 1(one) working day from the date of knowledge of content of this expedient, sent exclusively by e-mail, despite the provisions of the sole paragraph of art. 6 of CVM Instruction 358/02."

[Free translation of the Official Letter CVM 204/2016/CVM/SEP/GEA-1]

"Subject: News about clarification requested

1. We refer to the article published today in the newspaper Valor Econômico, under the title "Eletrobras contradicts Jucá regarding NYSE´s impact on debts", which contains the following statement:

   The Eletrobras ruled out yesterday the possibility of anticipation of debt maturity if the company's shares are no longer traded on the New York Stock Exchange (Nyse). According to the Chief Financial Officer and Investor Relations Officer, Armando Casado, all covenants (restrictive clauses of debt) are related to the financial statements in Brazil, which are archived. The Executive's position goes against statement made by the Minister of Planning, Budget and Management, Romero Jucá, that the suspension in New York would cause the anticipation of debt maturity until R$40 billion.

2. In view of the above, we determine that you clarify whether the news are true, and, if confirmed its veracity, shall explain the reasons which understood that it is not a Relevante Fact.

3. This document should be placed through the Empresa.NET System, category: Notice to the Market, type: Clarifications Inquiries CVM/BOVESPA, which should include a transcript of this Official letter.

4. We alert that the order of the Superintendence of Corporate Relations, in exercise of its legal powers and on the basis of section II of Article 9 of Law 6,385/76 and CVM Instruction No. 452/07, it will be the determination application of punitive fine in the amount of R$ 1,000.00 (one thousand reais), without prejudice to other administrative sanctions for non-compliance with the requirement contained in this notice within 1(one) working day from the date of knowledge of content of this expedient, sent exclusively by e-mail, despite the provisions of the sole paragraph of art. 6 of CVM Instruction 358/02."