Material Fact – Judicial Reorganization of Oi

MATERIAL FACT

São Paulo, June 20, 2016. Contax Participações S.A. (“Company”, CTAX3), pursuant to Instruction 358 of the Brazilian Securities and Exchange Commission (“CVM”), of January 3, 2002, as amended, and CVM Instruction 476, of January 16, 2009, as amended (“CVM Instruction 476”), as well as paragraph 4 of article 157 of Law 6,404, of December 15, 1976, as amended (“Brazilian Corporate Law”), hereby informs its shareholders and the market in general that one of its main clients, Oi S.A. (“Oi”), announced today that it has filed for judicial reorganization.

As disclosed in its material fact, Oi will maintain the continuity of operations, with commercial, operational and administrative activities. Oi explains that this measure was adopted, among other reasons, in order to preserve the continuity of the offering of services and the value of its companies, as well as to ensure the continuity of its business and protect its cash in an organized manner.

The Company will keep its shareholders and the market informed and will disclose other material information in a timely manner.

CONTAX PARTICIPAÇÕES S.A.

Cristiane Barretto Sales
Chief Financial and Investor Relations Officer