CTT-Correios de Portugal

Capital/Financing Update • Feb 4, 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)

Following the announcements made on 6 th and 22nd January 2016 referring to the payment by Oi S.A., the sole holder of the entire issued share capital of the Company, of an irrevocable capital contribution to the Company in the amount of EUR 500,000,000.00 (five hundred million), through one or more payment (s) in cash ("Contribution"), the Issuer informs that the Contribution was fully paid, at this date, by Oi S.A..

It is further informed that the payment of such Contribution merely determined the increase of the Issuer's assets, without any change in the nominal amount of its share capital, being recorded as a non-stipulated share premium ("niet-bedongen Agio ") in the financial books of the Company.

Lisbon, 4 th February 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

Flavio Nicolay Guimarães Investor Relations Officer Email: invest@oi.net.br Tel.: +55 21 3131-2918 Fax: +55 21 3131-1155