Hypermarcas : Notice to the Market

Publicly-Held Corporation

CNPJ nº. 02.932.074/0001-91 NIRE 35.300.353.251

HYPERMARCAS S.A. ("Company" or "Hypermarcas") hereby presents clarification, as requested by B3 S.A. - Brasil, Bolsa, Balcão ("B3") by means of the Official Letter number 21310/2017 - SAE, sent to the Company on July 31, 2017 ("Letter"), whose content is translated below:

"July 31, 2017 1310/2017-SAE

Hypermarcas S/A

Mr. Breno Toledo Pires de Oliveira Investor Relations Officer

Re: Request for clarification about news article in the media Dear Sirs,

On a news article published by Agência Estado/Broadcast on July 31, 2017, it is stated, among other information, that Hypermarcas believes that its product launches that are being designed should be able to generate additional revenue for the company in magnitude order of R$3.5 billion, five years after their execution.

We request clarification about the aforementioned items until August 1, 2017, prior to 9 am, confirming them or not, as well as presenting any information which may be regarded as important."

1. The news article appointed by the Letter was originated from an answer given during the Earnings Teleconference hosted on July 31, 2017, to discuss the Company's Quarterly Information regarding the 2nd Quarter of 2017 ("Teleconference").

2. Such answer referred to a market analyst's question about the Company's innovation pipeline. For this reason, it was informed that the Company has about 210 projects in its pipeline which have not been launched yet, which, if successfully launched, could generate the potential net revenue increment pointed out on the news article, after an interval of at least 5 (five) years after their execution.

3. The Company clarifies that the content of that answer is based on general perceptions about the dynamics of its businesses, the market segments in which it is present and the abstract potential of new projects - which have not been launched at this point and are constricted by

   risks and uncertainties of several different natures, including their feasibility and execution.

4. As explained during the Teleconference, it is just an illustration of the potential dimension of current projects, so that the answer given does not constitute any projection or guidance from the Company and should not, therefore, be interpreted as such.

5. In addition, the Company reaffirms that it only offers guidance under strict observation of the provisions of current regulation and assures that comments and opinion presented in teleconferences are not aimed to formalize or configure projections announced by the Company's management.

São Paulo, July 31, 2017.

Breno Toledo Pires de Oliveira

CFO and Investor Relations Officer