Isagen S A ESP : reports that it has answered and submitted the Country Code Survey to the Finance Superintendence of Colombia.

REPORT ON IMPLEMENTATION OF BEST BUSINESS PRACTICES ISSUER CORPORATE NAME ISAGEN S.A. E.S.P MAIN LEGAL REPRESENTATIVE: Luis Fernando Rico Pinzón LEGAL REPRESENTATIVE APPOINTED TO SUBMIT THE IMPLEMENTATION REPORT Luis Fernando Rico Pinzon REPORT PERIOD 2016 DATE OF REPORT 8 FEBRUARY 2017 INTRODUCTION

The implementation of recommendations in the new Colombian Code of Best Business Practices must be reported by the issuers to the Financial Superintendence of Colombia (SFC) through the Report of Implementation of Best Business Practices.

The purpose of this report is to advise the stock market about the implementation or not of recommendations from the Code by each issuer. To such end, in front of each recommendation there are three boxes corresponding to YES, NO and N.A, as well as a blank space to supplement your answer as follows:

If the answer is affirmative, the issuer must briefly describe the manner in which it has performed said implementation. In case it is negative, the issuer must explain the reasons for which it has not accepted it.

If the answer is N.A, it can only be given by the user in those cases in which, for legal reasons, it is not possible to adopt the recommendation. In such event, it must indicate exactly the norm that prevents it.

Given the fact that some recommendations are comprised by a number of specific matters, it is worth noting that these will be considered implemented if meeting all of its constituent aspects, unless the reason for not adopting some of them is of a legal nature, which must be so stated.

Each recommendation has a box to indicate the date on which the issuer implemented it for the first time. Furthermore, there will be a box to insert the dates on which changes are made.

Finally, when due to its nature, the issuer does not have the specific body referred to in the recommendation, it will be understood that it refers to the in-house area of the company that is its equivalent or substitute.

1. RIGHTS AND EQUAL TREATMENT OF THE SHAREHOLDERS Measure No. 1: Equal treatment principle.
2. The Corporation provides equal treatment to all the shareholders that, for the same class of shares, are in the same conditions, without this implying access to privileged information by some shareholders with respect to others.

3. 1.1. Implements measure YES XNO N/A

   YES Briefly indicate: ISAGEN, in its Good Governance Code, Chapter 4, provides for measures to secure equal treatment for its shareholders. Nevertheless, the Extraordinary Shareholders Assembly of ISAGEN, which was held on November 1, 2016, approved the cancellation of the registration of stock in the Registro Nacional de Valores y Emisores (RNVE) (National Register of Securities and Issuers) and the Bolsa de Valores de Colombia (BVC) (Colombian Stock Exchange), leaving only the issue of ordinary bonds. However, ISAGEN, as of December 31, 2016, upholds its Good Governance Code and its practices. Similarly, ISAGEN has in place the Information Disclosure Policy, which main objectives are: (ii) Establish the type of information to be disclosed, as well as its frequency, so as to ensure that the stakeholders can fully exercise their rights and have sufficient judgment elements to make decisions. (iii) Establish the transparency levels to be balanced and match the company's reserved or confidential information.

   NO. Explain:

   NA Specify the norms that prevent adoption of the recommendation:

   Implementation Date	September /2015
   Modification dates

   1.2. The Board of Directors has approved a concrete procedure that defines business practicesto engage with the various shareholders, on matters such as access to information, management of information requests, communication channels, forms of interaction among shareholders and company, its Board of Directors and other Administrators.

   1.2. Implements measure	YES	X	NO	N/A
   YES Briefly indicate:
   The Good Governance Code, in Chapter 4, section 4.5 - Assistance to Shareholders - stipulates the following: "The Board of Directors has a policy in place that defines practices set out by ISAGEN for engagement with the shareholders as related to: i) access to information, ii) addressing requests for information, iii) communications channels, iv) among others". In this regard, with the creation of ISAGEN's Policy for Disclosure of Information, responsibilities were defined with respect to transparency and disclosure of information among each business player, in order to ensure that stakeholders may fully exercise their rights and have sufficient judgment elements to make decisions.

   Additionally, ISAGEN has an Engagement with Investors team, added to the Office of customized attention to shareholders (Medellin and Bogotá), call center, web page, physical and virtual communications and email.

   NO. Explain:

   NA Specify the norms that prevent adoption of the recommendation:

   Implementation Date	Information Disclosure Policy - December 2015
   Modification dates	Good Governance Code - September 2015

   Measure No. 2: Information on shares. 2.1. Through its web page,the company publishes, in a clear, accurate and comprehensive mannerits different share classes, the number of shares issued per class and the number of reserved shares, added to the rights and obligations inherent in each class of share.

   2.1. Implements measure YES XNO N/A

   YES Briefly indicate: ISAGEN Bylaws, in Article Eight, set forth the characteristics of Company equity shares, which are ordinary and registered shares. This information is available for consultation in ISAGEN's web page, as follows: www.isagen.com.co / Inversionistas / Gobierno Corporativo / Documentos de Buen Gobierno / Estatutos Sociales

   NO. Explain:

   NA Specify the norms that prevent adoption of the recommendation:

   Implementation Date	July 2016
   Modification dates

   Measure No. 3: No stock dilution.

   3.1. In operations that may result in stock dilution of minority shareholders (in case of equity increase waiving the preferential right to subscribe shares, merger, sale or spinoff, etc), the company explains thoroughly to the shareholders in a prior report from the Board of Directors, including the opinion on the terms of the transaction from a well-known external adviser (fairness opinion), appointed by the Board of Directors. These reports are available to the shareholders prior to the General Meeting as per the terms provided for their right of inspection.

   3.1. Implements measure

   YES

   X

   NO

   N/A