Light S.A.: Light is Evaluating the Possibility of Raising Funds ... through a Public Offering

COMPANHIA ENERGÉTICA DE MINAS GERAIS -

CEMIG

LISTED COMPANY - CNPJ 17.155.730/0001-64 - NIRE 31300040127

MATERIAL ANNOUNCEMENT

Light is Evaluating the Possibility of Raising Funds through a

Public Offering

Cemig (Companhia Energética de Minas Gerais - listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

Cemig's affiliated company, Light S.A. ('Light') has today published the following Material Announcement:

" Light S.A. ("Company"), under the terms of Instruction No. 358, dated as of January 3, 2002 of the Brazilian Securities Exchange Commission (Comissão de Valores Mobiliários - "CVM"), as amended, hereby informs its shareholders and the market in general that it is evaluating the possibility of raising funds through a public offering of common shares issued by the Company ("Offering"), and, as a preliminary and preparatory act for the potential Offering, signed a non-binding memorandum of understanding ("Memorandum") aiming to anchor a portion of such potential Offering by investment funds led by GP Investments, Ltd.

("Investors").

The Memorandum is a preliminary and non-binding document, which only establishes indicative terms and conditions in case the Offering, in fact, occurs. However, the Company emphasizes that the effective pursuit of the Offering and the proposed anchoring by the Investors are subject to several factors and conditions, amongst others, market conditions, and there is no guarantee that neither will occur or under which terms and condition. As of this date, there is no definitive guarantee as to the performance of the Offering, as well as its structure and volume. Any future offering of shares will be conducted in accordance with the applicable regulations and legislation.

The Company will keep the Market informed of any development or deliberations regarding the potential Offering and the potential transaction proposed by the Investors, with due regard to the restrictions contained in CVM rules and other applicable legislation."

Belo Horizonte, August 16, 2018.

Maurício Fernandes Leonardo Júnior Chief Finance and Investor Relations Officer

Av. Barbacena 1200

Santo Agostinho

30190-131 Belo Horizonte, MGBrazilTel.: [phone]

Fax [phone]

Page 1 of 1

This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.