Cia Hering : Shareholder Participation - Gávea Investimentos

CNPJ (National Register of Legal entity) No. 78.876.950/0001-71 Proprietary Company

Blumenau/SC

NOTICE TO THE MARKET

CIA. HERING, in accordance to article 12, sixth paragraph of Normative Ruling CVM n. 358/02, as amended, herein states that received on November 1, 2017 the following information, sent by the Gávea Investimentos Ltda.

Blumenau, November 1, 2017.

Rafael Bossolani

CFO and Investor Relations Officer

TO CIA. HERING S.A.

Rua do Rocio, 430 - 3rd floor - Vila Olimpia São Paulo - SP, CEP 04552-000

Phone number: (11) 3371-4867 / (11) 3371-4805 / Fax: [phone]

C/o Mr. Rafael Bossolani

Ref.: Disposal of Ownership Interest - Normative Ruling CVM n. 358/02

GÁVEA INVESTIMENTOS LTDA., as manager of funds and investment portfolio comes, by the present document, to inform with regards to article 12 of the Normative Ruling CVM n. 358/02, the disposal of Common Stocks ("Stocks"") issued by CIA HERING S.A. - HGTX3 ("Company"), having as consequence the decrease, on 10/27/2017, of the total participation of funds and investment portfolio generated at a baseline inferior to ten percent (10%) of the total Stocks issued by the Company, according to the following:

Ticker	Final Quantity Oct/27/2017	Final Percentage
HGTX3	16.132.022	9,97%

We declare that the aforementioned disposal has no purpose of changing the control or structure of the Company, having as result only the criterion adopted for the selection of investments.

Finally, we request you to provide the immediate transmission of the information contained in this communication to the Securities and Exchange Commission - (Comissão de Valores Imobiliários - CVM) and to São Paulo's Stock Exchange, according to article 12, sixth paragraph of Normative Ruling CVM n. 358/02.

For any clarifications necessary, please contact the Compliance department, through the phone number (21) 3526-9100 or the electronic address [e-mail].

Sincerely,

GÁVEA INVESTIMENTOS LTDA.