EDP Energias do Brasil : Notice to Shareholders - Payment of interest on net equity

EDP - ENERGIAS DO BRASIL S.A.

Publicly Company

NIRE 35.300.179.731 CNPJ/MF no 03.983.431/0001-03

EDP SÃO PAULO
DISTRIBUIÇÃO DE ENERGIA S.A.	DISTRIBUIÇÃO DE ENERGIA S.A.
Publicly Company	Publicly Company
NIRE 35.300.153.235	NIRE 32.300.002.471
CNPJ/MF no 02.302.100/0001-06	CNPJ/MF nº 28.152.650/0001-71

EDP ESPÍRITO SANTO

NOTICE TO THE SHAREHOLDERS

PAYMENT OF INTEREST ON NET EQUITY

1. EDP - ENERGIAS DO BRASIL S.A. informs to its Shareholders that the Board of Director's, in a meeting held in December 21, 2017, approved interest on net equity in the total amount of R$72,709,000.00 related to the fiscal year of 2017, which will be distributed as follows:

Nature of payment	Amount per share
Interest on net equity	R$0.119949205

Payment of the above-mentioned sum shall be subject to the following conditions:

a) Retention of 15% income tax, except for immune or exempt shareholders who prove this condition until the date of December 30, 2017;

b) Interest on equity paid shall be added to the mandatory minimum dividend, to be paid by the Company for the fiscal year of 2017, integrating these values with amount of dividends distributed by the Company for all purposes of the corporate law;

c) It shall have rights over the interest on equity all shares of the Company outstanding on the base date of December 26, 2017;

d) The corresponding credits will be accounted in the accounting records of the Company on the date of December 30, 2017;

e) The shares will be traded as "ex-interest on capital" at "B3" stock exchange from December 27, 2017, inclusive;

f) The date of payment of interest on equity will be decided later, on the occasion of the resolution on the payment of dividends for the year ending in December 31, 2017, without any monetary or other compensation;

g) Those shareholders resident or domiciled in a country that does not tax income or that taxes income at a maximum rate below 20% (twenty percent), referred to article 24, Law no. 9430/96, shall be subject to withholding income tax at the rate of 25% (twenty-five percent) on the sum reported as interest on equity.

2. Still, EDP - ENERGIAS DO BRASIL S.A. announced that its subsidiaries EDP São

Paulo Distribuição de Energia S.A. ("EDP São Paulo") and EDP Espírito Santo

Distribuição de Energia S.A. ("EDP Espírito Santo") decided in December 21, 2017, pursuant to its Bylaws, payment to EDP - ENERGIAS DO BRASIL S.A, as the only shareholder of the said subsidiaries interest on capital for the fiscal year of 2017, totaling R$145,247,000.00, as follows:

Company	Interest on equity (gross amount)	Gross amount/share
EDP São Paulo	R$65,624,000.00	R$0.001678718
EDP Espírito Santo	R$79,623,000.00	R$13.550516915

The date of payment of interest on capital will be decided later by those subsidiaries, during the deliberation on the payment of dividends for the year ending on December 31, de 2017.

The corresponding credits will be accounted in the accounting records of EDP São Paulo and EDP Espírito Santo in December 31, 2017, on behalf of EDP - Energias do Brasil S.A.

Additional information may be obtained at the Investor Relations Department located at Rua Gomes de Carvalho, 1996 - 8º floor, São Paulo, Phone: [phone], and Fax: [phone].

São Paulo, December 21, 2017.

EDP - ENERGIAS DO BRASIL S.A.

Miguel Nuno Simões Nunes Ferreira Setas

CEO and Investor Relations Officer

EDP São Paulo Distribuição de Energia S.A. EDP Espírito Santo Distribuição de Energia S.A.

Dyogenes Rosi

Financial and Investor Relations Officer