Equatorial Energia : Notice to the Market - Auction to Acquire 49% of Intesa

EQUATORIAL ENERGIA S.A.

Public-Held Company CNPJ/MF: 03.220.438/0001-73

NOTICE TO THE MARKET

EQUATORIAL ENERGIA S.A. ("Company"), having its shares traded B3 S.A. - Brasil, Bolsa, Balcão ("B3") Novo Mercado segment, under the ticker "EQTL3", informs its shareholders that:

Today, the Company won a puclib-held auction ("Auction") in B3 headquarters, in accordance to the Auction's Bidding Documents ("Bidding Documents"), for the sale of the stake held by Centrais Elétricas Brasileiras S.A. - Eletrobras ("Eletrobras") in Integração Transmissora de Energia S.A. ("Intesa"), present in "Block I" of the Bidding Documents.

The Company offered R$ 277,484,856.19 ("Price") as the winning bid in the Auction.

As long as verified certain preceding conditions in the Bidding Documents, as well as the approval of the Auction's result by the Auction Commission, the Company will sign a Share Purchase Agreement ("Agreement"), through which, conditioned to certain preceding conditions, the Company will acquire shares representing 49% (forty-nine percent) of Intesa's capital stock, currently held by Eletrobras.

As consideration for the transfer of Intesa's shares ownership, the Company will pay the Price offered, adjusted to certain conditions present in the Agreement, among which possible dividend distribution by Intesa.

The deal's closing, with the transfer of Intesa's shares ownership to the Company is conditioned to certain preceding conditions, among which, the approval of the terms and conditions of the deal by ANEEL - Agência Nacional de Energia Elétrica and by CADE - Conselho Administrativo de Defesa Econômica.

With the deal's closing, the Company will become the owner of 100% of Intesa's capital stock.

Intesa is a company responsible for the construction, implementation, operation and maintenance of the electric energy transmission concession, compounded by the transmission line in 500 kV Colinas/Serra da Mesa 2, 3rd circuit, line connections and linked facilities, in accordance to the Transmission of Electric Energy Concession Contract # 002/2006-ANEEL.

Given that the Company already owns the remainder of Intesa's shares, representing 51% of its capital stock, the approval of the deal by the Company's Shareholders Meeting will not be necessary, nor there will be any refusal rights, as per Law 6,404/76, article 256.

Lastly, the Company reinforces its commitment to keep its shareholders and the Market in general informed about the evolution of this and any importante matter.

Brasília, September 27, 2018

Eduardo Haiama

Chief Financial and Investor Relations Officer