Localiza Rent a Car : Material Fact - Conclusion of Hertz Brazil aquisition

LOCALIZA RENT CAR S.A.

PUBLICLY-HELD COMPANY

Corporate Taxpayer's ID CNPJ/MF 16.670.085/0001-55

Corporate Registry ID (NIRE) 3130001144-5

MATERIAL FACT

CONCLUSION OF HERTZ BRAZIL ACQUISITION

Localiza Rent a Car S.A. - ('Localiza') (B3: RENT3 and OTCQX: LZRFY), in compliance with CVM Instruction 358/02 and in addition to the Material Facts released by the Company on December 05, 2016, June 27, 2017 and July 13, 2017 hereby informs its shareholders and the market the closing of the acquisition of 100% of the quotas of Car Rental Systems do Brasil Locação de Veículos Ltda. ('Hertz Brazil') by Localiza on August 31, 2017.

The acquisition was priced at R$360.1 million, which corresponds to Hertz Brazil's book equity. In up to 90 days from this date, the final financial statements as of the closing date will be prepared. Any differences in the financial statements will be adjusted between the parties.

By virtue of this acquisition, Localiza will take over a total fleet of 8,386 cars from Hertz Brazil, which includes 3,573 cars in the fleet rental division and 4,813 cars in the car rental division - as well as a network of 44 locations, of which 15 are located at airports and 29 are off-airports locations.

As part of the strategic alliance between the two companies, Localiza and Hertz Corp established a global and long-term relationship through a Brand Cooperation Agreement and a Referral Agreement.

This transaction does not include the acquisition of any stake in Hertz Corp by Localiza or in Localiza by Hertz Corp.

Belo Horizonte, August 31, 2017

Roberto Mendes

CFO and IRO