NATURA COSMÉTICOS S.A.

CNPJ/MF 71.673.990/0001-77 NIRE 35.300.143.183

NOTICE TO THE MARKET

By means of this Notice to the Market, Natura Cosméticos S.A. ("Natura") hereby clarifies to its shareholders and the market in general information related to the article under title "Natura perde disputa sobre agio no Carf" (Natura loses goodwill dispute at Carf) disclosed in the "Valor Econômico" newspaper in today's edition.

Regarding this matter, Natura reinforces its position in accordance with the article's content and clarifies that, with relation to the unfavorable decision of the Superior Chamber of the Administrative Council of Tax Appeals (Câmara Superior do Conselho Administrativo de Recursos Fiscais - CARF) referring to the administrative tax proceeding drawn up as a result of goodwill amortization, Natura will await its publication for the subsequent presentation of an appeal or adoption of a judicial measure to cancel the proceeding, which Natura considers undue. The risk of loss, as duly disclosed by Natura in its Reference Form, is assessed by its external advisors as "remote", which is why no financial impact is expected as a result of this decision.

Natura will keep its shareholders and the market in general duly informed on the relevant facts and events related to this matter.

São Paulo, October 6, 2017.

NATURA COSMÉTICOS S.A. JOSÉ ROBERTO LETTIERE

Chief Financial and Investor Relations Officer

Natura Cosméticos SA published this content on 06 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 October 2017 11:09:03 UTC.