NOS SGPS

Related Party Transaction • May 18, 2016

NOS, SGPS, S.A. (Public Company) Registered Offices: Rua Actor António Silva 9 - Campo Grande, parish of Lumiar 1600-404 Lisbon Registration number before the Companies Registrar of Lisbon and tax payer number 504 453 513 Registered Share Capital: EUR 5,151,613.80

ANNOUNCEMENT

NOS, SGPS, S.A. ("NOS") hereby informs that a Memorandum of Understanding (MoU) has been signed by NOS, NOS LUSOMUNDO AUDIOVISUAIS, S.A. and VODAFONE PORTUGAL, COMUNICAÇÕES PESSOAIS, S.A. which defines the quiding principles for an agreement regarding (i) reciprocal sharing of broadcasting rights for sports events and for the broadcast and distribution of sports and club channels that are currently held or come to be held by the signatory parties, and (ii) the sharing of the costs (current and future) incurred to contract this sports content.

This MoU already assumes that other Pay TV distributors in the Portuguese market may also participate in the agreement to be established, under the same terms and conditions as the current parties.

This information is also available on NOS' Investor Relations website at www.nos.pt/ir.

Lisbon, 18 May 2016

Contacts Maria João Carrapato Head of Investor Relations Email: ir@nos.pt Tel.: +351 21 782 47 25 Fax: +351 21 782 47 35