CTT-Correios de Portugal

Share Issue/Capital Change • Jan 22, 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)

As announced on 6 th January 2016, Oi, S.A., the sole holder of the entire issued share capital of the Issuer resolved an irrevocable capital contribution into the Company in the amount of EUR 500,000,000 (Five Hundred Million Euros), by means of one or more cash payment(s) to be made to the bank account to be indicated by the Company, until January 21, 2016, including.

The Issuer clarifies that said capital contribution will merely determine the increase of the Issuer's assets, without any change to the nominal amount of its share capital, being recorded as nonstipulated share premium ("niet-bedongen agio") in the financial books of the Company

It is further informed that an operational error has occurred and, therefore, it was not possible to make available, in a timely manner, the resources to Oi, S.A. in order to allow the latter to pay the capital contribution at the date previously announced.

In this context, it was resolved, on 21st January 2016, by the board of directors of the Issuer to confirm that the capital contribution is expected to be paid shortly and that, on 15th February 2016, it will meet again in order to reevaluate the situation and confirm the payment of the mentioned capital contribution.

Lisbon, 22 th January 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