Companhia de Saneamento Básico do Estado de São Paulo : Notice to the Market

Companhia de Saneamento Básico do Estado de São Paulo - Sabesp ('Company or 'Sabesp') hereby informs its shareholders and the market in general that, as resolved at the Company's Annual and Extraordinary Shareholders' Meeting of April 29, 2019 ('AESM'), the Eligibility and Advisory Committee analyzed the requirements for the investiture of Messrs. Alexandre Pedercini Issa and Eduardo José de Souza, elected to the positions of sitting and alternate members of the Company's Fiscal Council, respectively, on a separate vote for minority shareholders, pursuant to article 147, paragraph 3, item I of Law 6,404/76, as they were elected a few hours before the AESM to the same position at a company deemed as a potential competitor of Sabesp.

However, after resolution of the Eligibility and Advisory Committee, on May 21 and 22, 2019, the Company was formally informed by Messrs. Alexandre Pedercini Issa and Eduardo José de Souza, respectively, that, after becoming aware of the Committee' resolution, they would not take office in the positions for which they were appointed in the other company.

Accordingly, the Company understands that the factual situation that could impede the aforementioned members elected to the Company's Fiscal Council from taking office has ceased to exist. Therefore, Messrs. Alexandre Pedercini Issa and Eduardo José de Souza took office and were vested in the respective positions.

The minutes of the Eligibility and Advisory Committee's Meeting are available for consultation on the websites of the Company and the Brazilian Securities and Exchange Commission.

São Paulo, May 23, 2019.

Rui de Britto Álvares Affonso

Chief Financial Officer and Investor Relations Officer