PDG Realty : Notice to the Market - Declaration of Acquisition of Significant Equity Interest - article 12 of CVM Instruction 358/02

FREE TRANSLATION (This is a free translation of the Notice to the Market disclosed by PDG Realty S.A. Empreendimentos e Participações on June 29, 2018, and is being distributed for informational purposes only.)

PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised Reorganization

Publicly-Held Corporation

Corporate Taxpayer ID (CNPJ): No. 02.950.811/0001-89

Company Registry (NIRE): 35.300.158.954 | CVM Code 20478

NOTICE TO THE MARKET

The PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised

Reorganization (BM&FBOVESPA: PDGR3), a publicly held company, under the CNPJ/MF number 02.950.811/0001-89 ("Company"), located at Avenida Doutor Cardoso de Melo, 1,955,

6 th floor, Vila Olímpia, city of São Paulo, São Paulo, Zip Code 04548-005. The Company is registered as a public company under the category "A", in accordance to the Comissão de Valores Mobiliários ("CVM", or the Brazilian Securities and Exchange Comission) and the

CVM Code 20478.

Pursuant to Article 12 Instruction 358 of CVM, dated January 3, 2002, as amended, PDG Realty S.A. Empreendimentos e Participações - Under Court-supervised Reorganization, announces to its shareholders and the market in general that: The Company received a letter from Mr.

Reynaldo Quartim Barbosa Figueiredo, informing that its aggregated shares position amounted to 10,558,634 (ten million, five hundred and fifty-eight thousand, six hundred and thirty-four) common shares, representing 13.0% of the total number of the Company´s common shares outstanding.

Furthermore, we would like to inform that Mr. Reynaldo doesn't hold any other securities convertible into shares of the Company.

Mr. Reynaldo further states that these common shares are held only for investment purposes and not to alter the Company's ownership breakdown or management structure.

The Appendix I contains a copy of the letter received.

São Paulo, June 29, 2018.

Vladimir Kundert Ranevsky

CEO, CFO and Investor Relations Director of PDG Realty S.A. Empreendimentos e Participações -

Under Court-supervised Reorganization