PHAROL, SGPS, S.A.

Board/Management Information • Oct 3, 2017

Announcement | Lisbon | 3 October 2017

Material fact disclosed by Oi

PHAROL, SGPS S.A. hereby informs on the Material fact disclosed by Oi, S.A., according to the company's announcement attached hereto.

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 21 500 1701 Fax: +351 21 500 0800

Oi S.A. - In Judicial Reorganization Corporate Taxpayers' Registry (CNPJ/MF) No. 76.535.764/0001-43 Board of Trade (NIRE) 33.3.0029520-8 Publicly-Held Company

MATERIAL FACT

Resignation of Chief Financial Officer and Investor Relations Officer

Oi S.A. - In Judicial Reorganization (the "Company"), in compliance with Article 157, paragraph 4 of Law 6,404/76 and pursuant to CVM Instruction No. 358/02, hereby informs its shareholders and the market in general that on this date Mr. Ricardo Malavazi Martins presented his resignation as Chief Financial Officer and Investor Relations Officer of the Company.

Pursuant to Article 37 of the Company's Bylaws, the Board of Executive Officers, at a meeting held on this date, appointed Mr. Carlos Augusto Machado Pereira de Almeida Brandão to act as interim Chief Financial Officer and Investor Relations Officer, concurrently with his present position as Officer, until such time as the Board of Directors deliberates on this matter.

Rio de Janeiro, October 2, 2017.

Carlos Augusto Machado Pereira de Almeida Brandão Chief Financial Officer and Investor Relations Officer Oi S.A. - In Judicial Reorganization