Material Fact – Cancellation of Restricted Offering

MATERIAL FACT

São Paulo, June 16, 2016. Contax Participações S.A. (“Company”), pursuant to Instruction 358 issued by the Brazilian Securities and Exchange Commission (“CVM”) on January 3, 2002, as amended, CVM Instruction 476 of January 16, 2009, as amended (“CVM Instruction 476”), and paragraph 4 of article 157 of Law 6404 of December 15, 1976, as amended (“Corporation Law”), and complementing the Material Facts published by the Company on May 31 and June 13, 2016, which announced the holding of a public offering for primary distribution of registered book-entry common shares with no par value issued by the Company, free and clear of all encumbrances, with restricted placement efforts, pursuant to CVM Instruction 476 (“Restricted Offering”), hereby informs its shareholders and the market in general of the cancellation of said Restricted Offering, due to the current unfavorable market scenario in Brazil.

Amounts deposited by the Shareholders within the scope of the Priority Offering will be returned by the respective Custody Agents, without interest, monetary restatement or reimbursement of the costs incurred and with the deduction, if the case, of any eventual taxes or charges within three (3) Business Days as of this date.

CONTAX PARTICIPAÇÕES S.A.
Cristiane Barretto Sales
Chief Financial and Investor Relations Officer