Itausa Investimentos Itau : Material Fact - Conclusion of the Acquisition of Control of Alpargatas S.A.

CNPJ 61.532.644/0001-15

A Publicly Held Company

Pursuant to the provision in Paragraph 4 of Article 157 to Law 6.404/76 and in CVM Instruction 358, Itaúsa - Investimentos Itaú S.A. ("Itaúsa") announces to the market that jointly with Brasil Warrant Administração de Bens e Empresas S.A. ("BW") and Cambuhy Investimentos Ltda. ("Cambuhy") ("Purchasers"), it has today concluded the acquisition of a 54.24% stake in the capital of Alpargatas S.A. ("Alpargatas" or "Company") in accordance with the announcement in the Material Fact of July 12, 2017.

With the finalization of the transaction, Itaúsa has acquired 27.12% of the total capital stock of Alpargatas, represented by 103,623,035 common shares and 23,968,521 preferred shares, disbursing the amount of R$ 1,739,953,449.87, being the price per share equivalent to R$ 14.17 per common share and R$ 11.32 per preferred share, following adjustments made in the light of the payment of interest on own capital to the shareholders (as per resolution adopted at a meeting of the Board of Directors of Alpargatas held on August 4, 2017). The funds employed by Itaúsa for this acquisition will be replenished through the issue of promissory notes as notified on July 13, 2017.

Given the acquisition of a controlling stake and under the terms of Article 254-A of Law 6.404/76 and CVM Instruction 361, the Purchasers will hold a public offering for acquisition of the common shares of the remaining shareholders of Alpargatas, guaranteeing a price equivalent to 80% of the amount paid to the sellers. The result of this public offering may lead to an increased shareholding stake in Alpargatas by the Purchasers and a proportional additional disbursement by Itaúsa.

The Purchasers have today signed a Shareholders' Agreement providing for the shared management of Alpargatas. The copy of the relative document will be filed at the head offices of the Company and is available for consultation in the website pages of the Brazilian Securities and Exchange Commission - CVM (www.cvm.gov.br) and the São Paulo Stock Exchange - B3 (www.b3.com.br), pursuant to the provisions in CVM Instruction 358/02.

This transaction is not expected to have a significant effect on Itaúsa's results for this fiscal year. With this operation, Itaúsa reiterates its confidence in the future of Brazil and reinforces its commitment to creating value for its shareholders.

São Paulo (SP), September 20, 2017.

ALFREDO EGYDIO SETUBAL

Investor Relations Officer