Announcement | Lisbon | 15 September 2016 Notice to the Market disclosed by Oi

PHAROL, SGPS S.A. hereby informs on the Notice to the Market disclosed by Oi, S.A., according to the company's announcement attached hereto.

PHAROL, SGPS S.A.

Public company

Share capital Euro 26,895,375 Registered in the Commercial Registry Office ofLisbon

and Corporation no. 503 215058

PHAROL is listed on the Euronext (PHR). Information may be accessed on Bloomberg under the symbol PHR PL.

Luis Sousa de Macedo Investor Relations Director ir@pharol.pt

Tel.: +351 212 697 698

Fax: +351 212 697949

pharol.pt

Oi S.A. -In Judicial Reorganization

Corporate Taxpayers' Registry (CNPJ/MF) No. 76.535.764/0001-43 Board of Trade (NIRE) No. 33.3.0029520-8

Publicly Held Company MATERIAL FACT

Nomination of new members for the Board of Directors

Oi S.A. -In Judicial Reorganization ("Company"), pursuant to Article 157, paragraph 4, of Law No. 6,404/76 (the "Brazilian Corporation Law") and CVM Instruction No. 358/02, informs its shareholders and the market in general that, in conformity with Article 150 of the Brazilian Corporation Law, the Board of Directors of the Company, in a meeting authorized by the 7thCorporate Court of the Judicial District of the State Capital of Rio de Janeiro, held on this date, nominated the following individuals to hold the vacant positions for members and alternate members of the Board of Directors: as members, Messrs. Demian Fiocca and Hélio Calixto da Costa; and as alternate members, Messrs. Pedro Grossi Junior, Nelson de Queiroz Sequeiros Tanure, Blener Braga Cardoso Mayhew, Luís Manuel da Costa de Sousa de Macedo, Nelson Sequeiros Rodriguez Tanure and José Manuel Melo da Silva. As a result of these nominations, Oi's Board of Directors will have the following composition:

Member

Alternate Member

José Mauro M. Carneiro da Cunha (Chairman)

--

Ricardo Reisen de Pinho

Pedro Grossi Junior

Marcos Duarte Santos

Nelson de Queiroz Sequeiros Tanure

Demian Fiocca

Blener Braga Cardoso Mayhew

Thomas C. Azevedo Reichenheim

Sergio Bernstein

Rafael Luís Mora Funes

João do Passo Vicente Ribeiro

João Manuel Pisco de Castro

Luís Manuel da Costa de Sousa de Macedo

Luís Maria Viana Palha da Silva

Maria do Rosário A. Pinto Correia

André Cardoso de Menezes Navarro

Nuno Rocha dos Santos de Almeida e Vasconcellos

Hélio Calixto da Costa

Nelson Sequeiros Rodriguez Tanure

Pedro Zañartu Gubert Morais Leitão

José Manuel Melo da Silva

The nomination of such members will be submitted to the shareholders for ratification in the first general shareholders' meeting that may be timely called, pursuant to the Brazilian Corporation Law.

The Company clarifies, furthermore, that it will submit to the National Telecommunications Agency (Agência Nacional de Telecomunicações- ANATEL) a request for prior approval for the nomination of the new members of the Board of Directors, pursuant to the Regulation for the Assessment and Transfer of Control in Telecommunications Service Providers, approved by Resolution No. 101/99.

Rio de Janeiro, September 14, 2016.

Oi S.A. -In Judicial Reorganization Ricardo Malavazi Martins

Chief Financial Officer and Investor Relations Officer

Pharol SGPS SA published this content on 15 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 September 2016 10:08:07 UTC.

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