Alpargatas : Payment of Interest on Equity

Alpargatas S.A.

Publicly-Held Company

Corporate Taxpayer's ID (CNPJ/MF): 61.079.117/0001-05

Company Registry (NIRE): 35 3000 25 270

Notice to Shareholders Payment of Interest on Equity

We hereby inform our Shareholders that the Board of Directors Meeting held on August 10th, 2018, approved the payment of interest on equity, pursuant to the applicable legal and statutory provisions, subject to withholding income tax for individuals and legal entities, in accordance with existing legislation. The benefit covers all 470,449,777 registered shares making up the Company's capital stock, with the exception of the shares held in treasury, and is in the gross amount of up to R$ 37,600,000.00, equivalent to R$ 0.0774941590 per common share and R$ 0.0852435748 per preferred share. Shareholders of record on August 17th, 2018, are eligible to receive the payment and shares will be traded ex-interest-on-equity as of August 20th, 2018. The payment will be effected on September 18th, 2018 by Banco Itaú S.A. This amount will be offset against the mandatory annual dividends to be approved by the Annual Shareholders' Meeting of 2019.

São Paulo, August 10th, 2018.

Fabio Leite de Souza Investor Relations Officer