Companhia de Saneamento de Minas Gerais : Notice to the Market - Distribution of Interest on Equity

09/16/2011 | 05:50pm

Companhia de Saneamento de Minas Gerais

COMPANHIA DE SANEAMENTO DE MINAS GERAIS – COPASA MG PUBLIC HELD COMPANYNIRE 313.000.363-75CNPJ/MF Nº. 17.281.106/0001-03NOTICE TO THE MARKETDISTRIBUTION OF INTEREST ON EQUITY

We hereby inform our Shareholders that the Board of Directors’ Meeting, held on September 16th, 2011, approved the distribution of interest on equity (IOE) in the gross amount of R$ 42,523,851.36 (forty-two million, five hundred and twenty-three thousand, eight hundred and fifty-one reais and thirty-six centavos) for the third quarter of 2011, regarded the following conditions:

a) shareholders are entitled to the gross amount of R$ 0.37 (thirty-seven centavos) per share;

b) the amount mentioned above is subject to Withholding Income Tax (IRRF), according to the current legislation. Shareholders shall receive only the amounts net of taxes, except for those shareholders who are proven to be immune and exempt from said tax;

c) shareholders owning common shares on September 21st, 2011 will be entitled to the payment of interest on equity (IOE), and these shares shall be traded “ex-IOE”, as of September 22nd, 2011;

d) the date of payment of the Interest on Equity reported herein shall be of 60 (sixty) days from the date of its distribution.

e) the amount of IOE’s shall be charged to the mandatory dividend for 2011;

f) the shareholders whose entries don’t contain CPF/CNPJ info, or any bank or checking account indication, shall receive credits after proper adjustment of their registration within Banco do Brasil agencies.

Further information: Companhia de Saneamento de Minas Gerais - COPASA MG. Rua Mar de Espanha, 525, Bairro Santo Antônio, CEP 30330-900.

Belo Horizonte-MG, phone: +55 31 3250 2015, e-mail: ir@copasa.com.br

Belo Horizonte, September 16th, 2011.

Paula Vasques Bittencourt

Chief Financial and Investor Relations Officer