Banco Cruzeiro do Sul S.A. Corporate Taxpayer's ID (CNPJ/MF): 62.136.254/0001-99 Company Registry (NIRE): 35300011015 Publicly-held Company

NOTICE TO THE MARKET

Banco Cruzeiro do Sul S.A. ("Company"), a publicly-held financial institution, hereby announces to the market that reached the free float of 25.4%, in accordance with the Level 1 of BM&FBovespa's Corporate Governance.
As announced on May 17, 2012, an auction of 8,939,882 (eight million, nine hundred thirty- nine thousand eight hundred and eighty two) preferred shares issued by the Company, CZRS4, and owed by its controlling shareholder, was held today, May 18, 2012, at the BM&FBovespa - Securities, Commodities and Future Exchange.
The sale did not result in any alteration in the Company's administrative or control structure. The transaction enabled the Company to achieve the minimum percentage of outstanding
shares (free float), as shown below:

In 03/31/2012 From 05/18/2012 Total % Total %

Total Free Float

24,721,921

18.08%

34,734,603

25.40%

Cruzeiro do Sul Holding

99,897,555

73.06%

99,897,555

73.06%

Controlling Shareholders and Members of the Board

107,748,002

7.86%

735,320

0.54%

Treasury

1,360,000

0.99%

1,360,000

0.99%

Total Management

112,005,557

81.92%

101,992,875

74.60%

Total Shares

136,727,478

100%

136,727,478

100%

Additional information may be obtained in the Investor Relations Department of the Company at +55 11 3848-2704 or email: ri@bcsul.com.br.
Sincerely,
Luis Octavio Azeredo Lopes Indio da Costa
Investor Relations Officer

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