Cia Hering : Material Fact - Cellebration of Loan Agreement under PRODUZIR program

CORPORATE TAXPAYERS ID 78.876.950/0001-71 PUBLICLY-HELD COMPANY Blumenau - Santa Catarina MATERIAL FACT

Cia. Hering ("Company") (BM&FBOVESPA: HGTX3), pursuant to article 157, of Law 6,404/1976 and under the terms of CVM Instruction No. 358, as amended, hereby informs its shareholders, investors, market analysts and other stakeholders that the Board of Directors authorized, on this date, the Loan Agreement celebration through Credit Opening and Other Agreements approved by the State of Goiás Development Department through Resolution

#2,768/16-CE/PRODUZIR constituting investments subsidy required for the implementation and development of the industrial plant located in São Luis de Montes Belos - Goiás - through PRODUZIR tax incentive. The amount, which can be hired upon request, is up to R$ 631,558,172.70 (six hundred thirty-one million, five hundred fifty-eight thousand, one hundred seventy-two reais and seventy cents) and is valid until December 31, 2040.

Blumenau, August 31, 2016.

Frederico de Aguiar Oldani CFO and Investor Relations Officer