CTT-Correios de Portugal

Legal Proceedings Report • May 5, 2016

PORTUGAL TELECOM INTERNATIONAL FINANCE B.V. (the "Issuer" or "Company") €400,000,000 6.25% Notes due 2016 (the "Notes") guaranteed by Oi S.A. (ISIN CODE: PTPTCYOM0008)

The Issuer hereby informs that, on 29 April 2016, a notice was sent to it and to its parent company, Oi S.A., by Citicorp Trustee Company Limited (the "Trustee"), in its capacity as trustee of the holders of the Notes listed on Euronext Lisbon, stating that the Company has not yet delivered its audited annual financial statements for the 2014 fiscal year and requesting the delivery of those financial statements.

The Issuer continues to work with its auditor to complete the preparation of its 2014 audited annual financial statements as soon as possible.

For further information, please contact: Marco Norci Schroeder Portugal Telecom International Finance B.V. invest@oi.net.br

Lisbon, 4 th May 2016

Portugal Telecom International Finance B.V. Naritaweg 165, 1043 BW Amsterdam The Netherlands

Share Capital 21.000,00 euros Registered at The Netherlands Chamber of Commerce Commercial Register with the number 34108060 Portuguese Taxpayer Number: 710 222 149

Marco Norci Schroeder Investor Relations Officer Email: invest@oi.net.br Tel.: +55 21 3131-2918 Fax: +55 21 3131-1155