PHAROL, SGPS, S.A.

Declaration of Voting Results & Voting Rights Announcements • Oct 19, 2015

Announcement | Lisbon | 19 October 2015 PHAROL's stake in Oi after conversion of preferred shares into common shares of Oi.

PHAROL, SGPS S.A. ("PHAROL") hereby informs that, following the voluntary conversion of preferred shares into common shares of Oi, S.A., PHAROL now holds, directly and indirectly through wholly owned subsidiaries, 183,662,204 common shares of Oi, representing 27.18% of total share capital of Oi, SA (excluding treasury shares). PHAROL's voting rights in Oi will be limited to 15% of the total common shares of Oi.

Additionally, PHAROL maintains a Call Option on 47,434,872 common shares of Oi and 94,869,744 preferred shares of Oi with an exercise price of R\$20.104 per common share and R\$18.529 per preferred share with a 6-year maturity. The Call Option has partial expiration dates throughout the period, with the option volume to be reduced by 10% at the end of the first year and 18% per year thereafter.

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