RENOVA ENERGIA S.A.

CNPJ/MF Nº 08.534.605/0001-74

NIRE 35.300.358.295

Material Announcement Renova Energia S.A. (RNEW11) ("Company or Renova"), the first company operating solely in power generation from renewable sources listed on the Brazilian stock exchange (BM&FBovespa), as part of its commitment to implement the best corporate governance practices, hereby informs:

In view of the news, published in the media on July 30, 2013, which states that Companhia Energética de Minas Gerais - CEMIG ("CEMIG") studies acquire small hydropower (SHPs), inclusively with the Renova´s involvement, the Company announces that Renova and its controlling shareholders (RR Participações S.A. e Light Energia S.A. - the latter company has Cemig as a shareholder) are negotiating with CEMIG the participation of Renova in the acquisition of Brasil PCH S.A., which CEMIG signed a Share Purchase Agreement for acquisition of 49% of the holding´ shares. This percentage could increase to 100% if the others shareholders of Brasil PCH S.A. decide to exercise the right of joint sale established in their shareholder agreement.

The negotiations were not concluded and no decision was take or approved by any deliberative bodies of the Company, until this date. If they happen, its terms and conditions will be disclosed to the market.

São Paulo, July 31, 2013.

Pedro Villas Boas Pileggi

Chief Financial and Investor Relations Officer

Renova Energia S.A. (RNEW11) operates in generation of electricity from renewable sources, focused on wind farms, Small Hydro Plants (PCHs) and solar energy. It is currently the only BM&FBovespa-listed company dedicated to generation from alternative electricity sources. Renova's renewable-source generation projects are prospected, developed and implemented by its own multidisciplinary team of highly experienced electricity sector professionals - the result of continuous investment by Renova over its 12 years of operation. Renova is also Brazil's largest operator in renewable electricity sources in terms of capacity, with 702.9MW placed to date in Brazil's Regulated Market, and 545.7MW in its Free Market. It also controls Small Hydro Plants (SHPs) with total installed capacity of 41.8MW.


Any statements on the outlook for the business, estimates for operational or financial results, or the growth outlook for Renova Energia, expressed in this report are only projections and as such are based exclusively on the expectations of Renova Energia's management under the Company's business plan. Future estimates are based on Renova's present knowledge, assumptions and expectations, based on the information currently available to it. These assumptions and expectations may change as a result of a range of possible events or factors, of some of which the Company may not at present be fully aware.

INVESTOR RELATIONS

Pedro Pileggi - Chief Finance and Investor Relations Officer

Flávia Carvalho - Investor Relations Manager Fernanda Kitamura - Investor Relations Analyst ri@renovaenergia.com.br

(+55 11) 3569-6746

MEDIA OFFICE

Inês Castelo - ines@traee.inf.br

(+55 11) 3093-3600

www.renovaenergia.com.br

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