PHAROL, SGPS, S.A.

Capital/Financing Update • Jun 24, 2015

Announcement | Lisbon | 24 June 2015

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

NOTICE TO DEBENTURE HOLDERS 1st and 2nd Series of the 9th Issuance of Debentures

Oi S.A. (the "Company") announces to the Debenture Holders of the 1st and the 2nd Series of the 9 th Issuance of the Company's Simple, Non-Convertible, Unsecured Debentures, for Public Distribution of Debentures (Oi BR-D91 and Oi BR-D92) that, on this date, it shall proceed with Mandatory Repurchase in the total amount of R\$ 10,151.254243 per debenture of the 1st Series (Oi BR-D91), and in the total amount of R\$ 10,907.475477 per debenture of the 2nd Series (Oi BR-D92).

Rio de Janeiro, June 24, 2015.

Oi S.A.

Flavio Nicolay Guimarães Diretor de Finanças e de Relações com Investidores