MAGAZINE LUIZA S.A.

Publicly-Held Company

CORPORATE TAXPAYER ID (CNPJ/MF): 47.960.950/0001-21

COMPANY REGISTRY (NIRE): 35.300.104.811

MATERIAL FACT PROPOSAL FOR REVERSE SPLIT OF THE COMPANY'S SHARES IN THE RATIO OF 8:1

MAGAZINE LUIZA S.A. ("Magazine Luiza" or "Company") hereby informs its shareholders and the market in general, in compliance with the provisions of Paragraph 4 of Article 157 of Law No. 6404, December 15, 1976, as amended ("LSA"), and the Brazilian Securities Commission Instruction No. 358, of January 3, 2002, as amended, that its Board of Directors, at the meeting held on September 09, 2015 approved by unanimous vote and without any restrictions the reverse split proposal of all its shares for assessment at the Extraordinary Shareholders' Meeting ("ESM") of the Company.

I) Reverse Stock Split. Through the proposed transaction, the reverse split of all of the current 177,991,467 (one hundred and seventy-seven million, nine hundred and ninety-one thousand, four hundred and sixty-seven)1 common shares, all nominative, with no par value, issued by the Company, will be held at the ratio of 08 (eight) shares to 01 (one) share of the same type ("Reverse Split Factor"), without changes in the capital stock, in accordance with Article 17, item i) of the Company's Bylaws and Article 12 of the LSA. After the reverse split, Magazine Luiza's capital stock will remain in the amount of R$626,911,472.00 (six hundred and twenty-six million, nine hundred and eleven thousand, four hundred seventy-two reais), divided into 22,248,933 (twenty-two million, two hundred and forty-eight thousand, nine hundred and thirty-three) common shares, all nominative, with no par value. The reverse stock split will be operated and put into effect by the Company's

Management, preserving all the rights and benefits of the Shareholders.

1 Total number of Company shares after the cancellation of the three million, five hundred and three thousand

(3,503,000) shares held in treasury, pursuant to resolution of the Board of Directors on May 27, 2015.

II) Treatment of fractions. After the approval of the reverse split of the

Company's shares at the ESM, the controlling shareholder, LTD Administração e Participações S.A., will directly or indirectly donate the fractions of shares so that each shareholder of the Company is able to receive the fraction required to secure ownership of the next whole number of shares after the implementation of the approved reverse split factor. The reverse stock split will be reflected in the negotiations on the BM&FBOVESPA S.A. - Securities, Commodities and Futures Exchange ("BM&FBOVESPA") from the day following its approval by the ESM.

III) Purposes. The implementation of the reverse split of the Company's common shares has as its main objectives: (a) reduce stock volatility; and (b) provide better price levels of the Company's shares in order to prevent those immaterial fluctuations - in centavos - representing high percentages, in line with the issuers' registration rules of the BM&FBOVESPA. IV) ESM of the Company and Bylaw Changes. The Board of Directors' Chairman shall call the ESM for the shareholders' analysis, discussion and resolution on the proposal for reverse split of all the Company's shares, under the exact terms described in this Material Fact.

The Company will keep its shareholders and the market in general duly informed about the reverse stock split proposal and the date on which the shares will be traded, grouped.
São Paulo, September 09, 2015.

Roberto Bellissimo Rodrigues

Chief Financial and Investor Relations Officer

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