TELEFÔNICA BRASIL S.A.

Publicly-Held Company

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

NOTICE TO THE MARKET DELIBERATION OF INTEREST ON CAPITAL

Continuing the Notice to Shareholders of September 18, 2017, published in the editions of September 19, 2017 of the newspapers Diário Oficial do Estado de São Paulo and Valor Econômico, Telefônica Brasil S.A. ("Company") announces to its shareholders that there were no acquisitions, divestitures or cancellations of shares held in treasury under the Company's Share Buyback Program (Material Fact released on June 9, 2017). Thus, the amounts per share for the Interest on Capital deliberated by the Board of Directors on September 18, 2017 remain unchanged as described in the table below:

Amount per share (R$)

Immune or Exempt Legal Entities (gross value)

Withholding tax (15%)

Taxed Legal Entities and Individuals (Net value)

Common shares

0.16938537321

0.02540780598

0.14397756723

Preferred shares (*)

0.18632391053

0.02794858658

0.15837532395

(*) 10% higher than the amount granted to each common share, in accordance with article 7 of the Company's Bylaws.

The credit of Interest on Own Capital will be made on individual basis for each shareholder, in accordance to the shareholder registry book position by the end of the day, on September 30, 2017. After this date the shares will be considered as "ex-Interest on Own Capital". The payment of these proceeds will be carried out before the end of the fiscal year of 2018, in a date to be defined by the Company's Board.

São Paulo, September 29, 2017.

David Melcon Sanchez-Friera

CFO and Investor Relations Officer Telefônica Brasil S.A. - Investor Relations Tel: +55 11 3430-3687

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

Telefônica Brasil SA published this content on 29 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 September 2017 18:09:04 UTC.

Original documenthttp://ri.telefonica.com.br/en/Download/1572_Notice_to_the_Market_-_Sep_18_2017_IOC_amount_per_share_confirmation.pdf

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