PHAROL, SGPS, S.A.

Legal Proceedings Report • Jan 25, 2016

Announcement | Lisbon 25 January 2016

DAMAGES CAUSED BY THE INVESTMENT IN DEBT INSTRUMENTS ISSUED BY ENTITIES OF ESPÍRITO SANTO GROUP – LIABILITY COURT ACTION

PHAROL, SGPS S.A. ("PHAROL") informs that today it has filed the judicial liability claim before the Lisbon's District Court against its former directors Zeinal Bava, Henrique Granadeiro and Luís Pacheco de Melo, for breach of their respective legal and contractual duties, namely the duty to submit to the Board of Directors for approval any investments in debt instruments issued by entities of Espírito Santo Group, as well as the duty to implement an internal control system suitable for these forms of investment.

Breach of the abovementioned duties caused several damages to PHAROL, such as € 54,900,000.00 (fifty four million and nine hundred thousand Euro), as over time the amounts invested could not be used in the activities of PHAROL and other losses in amounts yet to be determined in execution of sentence.

The Board of Directors thereby complies the resolution of PHAROL's General Meeting of Shareholders of 31 July 2015, within the six months deadline.

Pursuant to what has already been announced, this action does not prevent PHAROL from filing other liability claims against other directors (of the period 2012/2014) or against any third parties which in any way may be deemed liable for damages suffered by PHAROL as a consequence and/or related with the investment in debt instruments issued by entities of Espírito Santo Group.

PHAROL, SGPS S.A.

Public company Share capital Euro 26,895,375 Registered in the Commercial Registry Office of Lisbon and Corporation no. 503 215 058 PHAROL is listed on the Euronext (PHR). Information may be accessed on Bloomberg under the symbol PHR PL.

Luis Sousa de Macedo Investor Relations Director ir@pharol.pt Tel.: +351 212 697 698 Fax: +351 212 697 949