Companhia de Saneamento de Minas Gerais : Notice to the Market - Installation of Statutory Audit Committee - 07/04/2018

Companhia de Saneamento de Minas Gerais

COMPANHIA DE SANEAMENTO DE MINAS GERAIS - COPASA MG

PUBLICLY-HELD COMPANY

COMPANY REGISTRY (NIRE): 313.000.363-75

CORPORATE TAXPAYER'S ID (CNPJ/MF): 17.281.106/0001-03

NOTICE TO THE MARKET

INSTALLATION OF STATUTORY AUDIT COMMITTEE

Companhia de Saneamento de Minas Gerais - COPASA MG informs its shareholders that the Statutory Audit Committee was constituted and its members were elected by the Board of Directors at the meeting held on 27 June 2018. The Committee shall be composed of three members, as detailed below:

Artemio Bertholini, accountant and economist, Managing Partner of Directa companies (Audit, Consulting and Outsourcing - 35 years until 2012): President of Grant Thornton Brazil from 2013 to 2015; Consultant Advisor of FIPECAFI; Member of the Audit Committee of BB Seguridade and SANEPAR - Cia. de Saneamento do Paraná and Member of the Fiscal Council of Tekno S.A. Ind. e Com.

Luiz Alberto Ribeiro Vieira, graduated in 1980 in Business Administration from Instituto Cultural Newton Paiva Ferreira. He worked as a Private Consultant in several municipalities between 1989 and 1992. In the Municipality of Belo Horizonte, he was Deputy Municipal Secretary of Administration for two periods - from January/93 to December/96 and from March/98 to December/00 - and Secretary for the Coordination of Administration and Human Resources from March/03 to March/05. He also held the position of Deputy Municipal Secretary for Social Development from January/97 to March/98 and Secretary of the same entity from March/01 to March/03. Chief Executive Officer of Beneficence of Belo Horizonte City Hall - BEPREM from 2005 to 2008. Administrative and Financial Director of the Municipal Tourism Company of Belo Horizonte S/A - BELOTUR from March/09 to December/10 and from January/11 to July/12. He held the same position at the Odilon Behrens Municipal Hospital. General Coordinator, at Brazil level, at the General Secretariat of the Presidency of the Republic of the Millennium Development Goals Project/UNDP/UN. He was Superintendent of Planning, Management and Finance of the State Department of Social Development and Labor of the State of Minas Gerais from February/15

to May/17. He was a member of the Fiscal Councils of BHTRANS, URBEL and Fundação Zoobotânica.

Remulo Borges de Azevedo Lemos, graduated in Business Administration, 1967/1971 (UFMG), with specialization in business management from Fundação Dom Cabral/INSEAD and Fundação Getúlio Vargas/FGV. He worked at Paranapanema S/A - Consultancy for the sale of properties/land regularization in the states of Bahia and São Paulo, reception of credits with the Rio de Janeiro State Government, technical advisory with the Government Sector, advisory to the Executive Board on topics related to electricity, 2013-2014 - Independent consultant in company and business management, 2011-2012 - Grupo Paranapanema - Chief Financial and Investor Relations Officer, 2003, Chief Management Officer, 1999-2002, Advisor to the Presidency, 1996- 1998, Secretary of the Board of Directors, 1996-2001, Member of the Board of Directors of Cibrafertil (BA) - Cia. Vale do Rio Doce - Control Superintendence-SUCON, Advisor, 1994-1995, Fundação Vale do Rio Doce de Seguridade Social-VALIA, Advisor to the Executive Board, 1992-1993, Mineração Rio Do Norte (Grupo CVRD), Supply Superintendent, 1986- 1987, Controller, 1984-1986, Budget and Planning Manager, 1979-1984, Alcan Alumínio do Brasil - Financial Planning, Control and Planning Manager, 1972-1979 - Minas Gerais Secretariat of Finance, Financial Advisor to the Secretary of Finance,1976. He was Chief Technical and New Businesses Officer at COPASA MG between January and November 2015.

The Company further informs that it updated, on this date, the Reference Form, in order to contemplate the information regarding this Committee.

Belo Horizonte, 4 July 2018.

Frederico Lourenço Ferreira Delfino

Acting Chief Financial and Investor Relations Officer