Companhia de Saneamento de Minas Gerais : Notice to the Market - Payment Of Interest On Equity (IOE)

Companhia de Saneamento de Minas Gerais

PUBLICLY-HELD COMPANY COMPANY REGISTRY (NIRE): 313.000.363-75

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

Companhia de Saneamento de Minas Gerais - COPASA MG hereby announces to its shareholders that, in compliance with the Company's Dividend Policy, payment of IOE referring to the third quarter of 2017 will be made in 23 October 2017, in the gross amount of R$38,946,092.30 (thirty-eight million, nine hundred forty-six thousand, ninety-two reais and thirty centavos), corresponding to a gross amount of R$0.3081329086 (zero point three zero eight one three two nine zero eight six centavos of real) per share, as per declaration by the Board of Directors, in meeting held in 20 September 2017.

The amounts stated above are subject to the deduction of the Withholding Income Tax, pursuant to the applicable legislation, and will be paid to the shareholders net of said tax, except for those shareholders who are provenly immune or exempt from it.

Shareholders whose registration data do not provide their individual or corporate taxpayer number (CPF/CNPJ) or bank, branch and current account data will have their rights credited after they update their registration data at any branch of Banco Itaú Unibanco.

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, 19 October 2017.

Luiz Gustavo Braz Lage

Chief Financial and Investor Relations Officer