CTT Correios de Portugal : Decision of ANACOM on the price formulation criteria of the postal services

CTT - Correios de Portugal, S.A.

Public Company

Avenida D. João II, 13 1999-001 LISBON

Lisbon commercial registry and fiscal no. 500 077 568

Share Capital EUR 75,000,000.00

Announcement - Lisbon, 18 July 2018

Material information

CTT - Correios de Portugal, S.A. ("CTT" or "Company") hereby informs that today ANACOM - Autoridade Nacional de Comunicações ("ANACOM") has communicated the price formulation criteria for the postal services comprising the Universal Service1 for the three-year period of 2018-2020.

According to the decision of ANACOM2, the new rules shall be applicable to the prices in force in 2019 and 2020 and set a maximum annual price change of the basket of letter mail, editorial mail and parcels services (non-reserved services), linked to the inflation rate ("CPI") including inflation adjustment factors ("CPIAF") and volume adjustment factors ("VAF") which shall take into account the differences that may occur between the actual and the predicted values for those variables. In 2019 and 2020, the weighted average change of the prices of these services may not exceed, in average nominal terms for each of these years, the CPI + CPIAF -1.33% + VAF.

As regards the services of judicial and other postal notifications (services reserved3 to CTT), a maximum annual price change of their prices is also set out, which is pegged to the factors considered for the basket of non-reserved services. In 2019 and 2020, the weighted average change in prices of these services may not exceed, in average nominal terms for each of these years, the CPI + CPIAF - 4.4% + VAF.

The Company will carry out a careful and detailed analysis of the substance and reach of this decision of ANACOM known today and assess the legal means for the protection of its legitimate rights, considering in particular the new quality of service criteria also approved by ANACOM which go far beyond those that have been applied throughout the nearly 19 years of the USO's Concession Agreement.

This information to the market and the general public is made under the terms and for the purposes of article 248 of the Portuguese Securities Code and other legislation in force. It is also available on CTT's Investor Relations website at:http://www.ctt.pt/ctt-e-investidores/relacoes-com-investidores/comunicados.html?com.dotmarketing.htmlpage.language=1.

CTT - Correios de Portugal, S.A.

Guy Pacheco

Market Relations Representative of CTT

• 1 The services covered by this decision do not include the USO offer to bulk mail senders, who benefit from special prices.

• 2 The methodology to forecast the non-reserved services volumes remains subject to public consultation.

• 3 In 2017 these services represented circa 0.5% of the total volumes of the Universal Postal Service.

www.ctt.pt

CTT - Correios de Portugal, S.A.

Public Company

Avenida D. João II, 13 1999-001 LISBON

Lisbon commercial registry and fiscal no. 500 077 568

Share Capital EUR 75,000,000.00

Peter Tsvetkov

Director of Investor Relations of CTT

Contacts:

Email:investors@ctt.ptFax: + 351 210 471 996

Phone: + 351 210 471 087

www.ctt.pt