NOS SGPS

Capital/Financing Update • Apr 23, 2018

NOS, SGPS, S.A. (Public Company) Registered Offices: Rua Actor António Silva 9 Campo Grande, parish of Lumiar, 1600-404 Lisbon Registration number before the Companies Registrar of Lisbon and tax payer number 504 453 513 Registered Share Capital: EUR 5,151,613.80

ANNOUNCEMENT Translation of the Portuguese Original (In the event of any discrepancy, Portuguese Original shall prevail)

BOND ISSUE IN THE AMOUNT OF 300 MILLION EUROS

Lisbon, 23 April 2018 - Under the terms and for the purposes of article 17 of EU Regulation number 596/2014 of the European Parliament and Council, dated 16 April 2014, of articles 248 and 248-A of the Portuguese Securities Code (Código dos Valores Mobiliários) and further applicable legislation,

NOS has today agreed the terms of a 300 million euro bond issue, which will be listed on the regulated Luxembourg Stock Exchange, with a 5 year maturity at an annual fixed coupon rate of 1.125%, corresponding to a 5-year mid swap rate, plus 0.75% spread, with settlement on 2 May 2018.

The purpose of this bond issue is to refinance existing debt and other general corporate purposes, representing yet and contributing i) to diversify financing sources and instruments, through access to debt capital markets; ii) to extend average debt maturity; and iii) to further reduce average cost of debt.

NOS is pleased with the high level of demand registered for this issue, reaching around 1,200 million euros, as well as with the quality of the institutional investors that participated, which reflects strong credit profile as recently demonstrated by the investment grade credit rating awarded by - credit rating) and Fitch (long term BBB credit rating).

In this transaction, CaixaBank/BPI, CaixaBI, ING, Santander and SG CIB (B&D) acted as Joint Lead Managers / Active Bookrunners and BNP Paribas as Passive Bookrunner.

www.nos.pt/ir.

Lisbon, 23 April 2018

Contacts Maria João Carrapato Head of Investor Relations Email: ir@nos.pt Tel.: +351 21 782 4725 Fax: +351 21 782 4735