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

São Paulo, July 16th, 2012 - Banco Cruzeiro do Sul S.A. ("Company"), a publicly-held financial institution, under the process of Temporary Special Administration Process (RAET) as per "Notice to the Market" filed at the Comissão de Valores Mobiliários (CVM) on June 4th,
2012, would like to inform that:
In view of the news published on July 14th, 2012, we hereby announces to the market that the Company disregard the source and the procedure of the information published on "O Estado de São Paulo" newspaper, and up to the conclusion of the due diligence that is being performed by Price Watherhouse, PWC, and the release of the financial statement report which is forecasted by law, it is not possible to provide the estimated amount of the potential loses, or the necessity of provisions on the bank or on its subsidiaries.
On top of that we also do not recognize the grounds that could justify the volatility observed on our Stocks traded at the BM&FBOVESPA, and also on our Bonds issued on the international debt capital markets, on the earlier days.
As soon as we have any information which could provide the actual figures of the Company's shareholder equity, it will be released to the market according to the requirements of the local legislation.
Sincerely,
Banco Cruzeiro do Sul
Special Management

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