TELEFÔNICA BRASIL S.A.

Publicly-held Corporation

CNPJ MF 02.558.157/0001-62 - NIRE 35.3.001.5881-4

M ATERI AL F AC T

Telefônica Brasil S.A. ("Company") hereby announces to its shareholders and to the market in general, in accordance with CVM Instruction No. 358/2002, that its Board of Directors, at a meeting held on this date, approved the delivery of a limited number of preferred shares issued by the Company in order to comply with judicial decisions.

Treasury shares will be used for this purpose, corresponding to up to 0.059% of the Company's capital stock and up to 0.089% of the preferred shares issued by the Company.

The minutes of said meeting of the Board of Directors, and other complementary documents, are available to shareholders at the Company's headquarters, and on the websites of the Company's (http://www.telefonica.com.br/ir/), of the Comissão de Valores Mobiliários (Brazilian Securities and Exchange Commission) and of BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros.

São Paulo, March 2, 2017.

David Melcon Sanchez-Friera

CFO and Investor Relations Officer

Telefônica Brasil - Investor Relations Tel: +55 11 3430 3687

Email: ir.br@telefonica.com www.telefonica.com.br/ir

Telefônica Brasil SA published this content on 02 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 02 March 2017 22:08:17 UTC.

Original documenthttp://telefonica.mediagroup.com.br/en/Download/1509_Material_Fact_-_Delivery_of_Shares.pdf

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