PHAROL, SGPS, S.A.

Legal Proceedings Report • Nov 8, 2018

Announcement | Lisbon | 8 de novembro de 2018

Filing of the court action against Oi, S.A. – In Judicial Reorganization and its subsidiaries based in Portugal

Following the communication to the market made by PHAROL on June 22, concerning the requirement of seizure against Oi, S.A. – In Judicial Reorganization (hereinafter referred to as "Oi") and its subsidiaries based in Portugal, PHAROL hereby informs that has filed in the Civil Court – Judge 18 of the Judicial Court of the District of Lisbon, the main court action against Oi, S.A. requesting the payment to PHAROL an indemnity in the total amount of € 2.017.108.646,58 (two thousand and seventeen million, a hundred and eight thousand, six hundred and forty six euros and fifty eight cents), including due and falling interest.

The behaviour of Oi when providing information, during its relationship with PHAROL, previously Portugal Telecom, namely, at the time of the General Meetings held in Lisbon, on 8th September of 2014 and 12th and 22nd January 2015, where it was decided the sale of PT Portugal to Altice, severely impaired PHAROL's rights and interests and its thousands of shareholders.

The court action is based on the civil liability of Oi, S.A., seeking to recover part of the damages that caused to PHAROL as a consequence of the breach of duties to which Oi, S.A. was obliged, and of the rights of PHAROL and its shareholders.