PHAROL, SGPS, S.A.

Regulatory Filings • Jun 18, 2016

Announcement | Lisbon | 18 June 2016

Notice to the Market disclosed by Oi

PHAROL, SGPS S.A. hereby informs on the Notice to the Market 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 215058 PHAROL is listed on the Euronext (PHR). Information may be accessed on Bloomberg under the symbol PHRPL.

Luis Sousa de Macedo Investor RelationsDirector ir@pharol.pt Tel.: +351 212 697 698 Fax: +351 212 697 949

0i S.A. Corporate Taxpayers' Registry [CNPJ/MF] No. 76.535.764/0001-43 Board of Trade [NIRE] No. 33.300.29520-8 Publicly-Held Company

NOTICE TO THE MARKET Fitch rating

Oi S.A. [BOVESPA: OIBR3, OIBR4; NYSE: OIBR.C, OIBR) [the "Company" or "Oi"] discloses to its shareholders and the market in general that Fitch announced today its review of the credit rating attributed to the Company, downgrading long-term global and domestic scales of credit rating from CCC to C.

Rio de Janeiro, June 17 2016

Flavio Nicolay Guimarães Chief Financial Officer and Investor Relations Officer $0i S.A$