Netshoes (Cayman) Limited announced that it reached on October 3, 2018 an agreement (Termo de Ajustamento de Conduta) with the Brazilian Federal District State Attorney’s Office (Ministério Público Estadual do Distrito Federal e Territórios) in connection with the data incident previously disclosed to the market on February 26, 2018. Netshoes agreed to pay a fine in the amount of BRL 500,000.00. In return, the Brazilian Federal District State Attorney’s Office will terminate its administrative legal proceeding into this incident. This agreement is still subject to ratification by Brazilian courts.