Companhia Brasileira de Distribuicao : Material Fact - Celebration or Extinction of Contract

COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO

AUTHORIZED CAPITAL PUBLICLY-HELD COMPANY

CNPJ/MF No. 47.508.411/0001-56

NIRE 35.300.089.901

MATERIAL FACT

Companhia Brasileira de Distribuição ("Company" or "GPA"), in compliance with Brazilian Law No. 6.404/76 and CVM Instruction No. 358/02, announces to its shareholders and the Market in general that entered on this date into a Share Purchase Agreement with Leji Investimentos Ltda. ("James Delivery"), by which the Company shall acquire shares representing 100% (one hundred percent) of the capital stock of James Deliver upon the fulfillment of the suspensive conditions. Until the conclusion of the transaction, James Delivery will provide services to GPA, as described below. Yet, such acquisition is not subject to the provisions set forth in Article 256 of Brazilian Law No. 6404/76.

James Delivery is a Brazilian start-up that offers a multiservice ordering and delivering platform, ranging from items sold in supermarkets to restaurants and drugstores. Such transaction is aligned with the Company's omnichanel strategy in a long-term view. The acquisition also gives the Company access to a new business niche, the SuperApps - a platform that allows users to receive a wide range of products from selected partners in "consumers verticals relations" in a single hour, such as supermarkets, convenience stores, drugstores, restaurants and others. This new offer complements the delivery methods that the Company already offers to its customers, such as: purchase in physical store, next day deliveries, same day deliveries and express deliveries (in up to four hours) and Click & Collect (online shopping to be collected in a physical store).

"It's a unique opportunity to significantly accelerate our omnichanel strategy, offering to our customers more diverse and customize solutions for their purchases.", said Peter Estermann, CEO of GPA. For Estermann, the acquisition puts GPA in a different level in relation to the expansion of delivery services to customers, associated with an innovation environment and in a disruptive way. "They have a distinctive technology, a highly skilled team, a very good operational knowledge of the business and a clear strategic vision that is fully aligned with out guidelines." said GPA's CEO.

As of tomorrow, the products of the Company's banners in Curitiba / PR (Pão de Açúcar and Extra) will be offered at James Delivery's platform with a high level of integration between channels and a differentiated customer experience. In the medium term, the Company will have James Delivery as its only multiservice platform, whose verticals will be served by the Company's own banners or by selected partners in verticals where the group does not operate, providing a differentiated revenue generation for the Company and such partners.

"We are very pleased with this partnership," said Lucas Ceschin, co-founder and CEO of James Delivery. With the support of GPA, we will be able to accelerate our vertical growth in the retail, offering a totally integrated experience with the physical stores of the Group. This will be a strong differential to bring more value to our customers across all verticals of James", says Ceschin.

About James Delivery

The first multiservice platform in Brazil, James Delivery is managed by four founders: Lucas Ceschin, Eduardo Petrelli, Ivo Roveda and Juliano Hauer. Headquartered in Curitiba, Paraná, the team has 18 collaborators and a base of 700 deliverers, and was a finalist in the selection of Liga Retail program, the first retail start-up acceleration program sponsored by GPA on August 02, 2018.https://www.jamesdelivery.com.br/

São Paulo, December 10, 2018.

Daniela Sabbag

Investor Relations Officer