Telefônica Brasil S A : Notice to Shareholders - Deliberation of Interest on Own Capital

TELEFÔNICA BRASIL S.A.

Public-held Company

CNPJ MF 02.558.157/0001-62 - NIRE 35.3.001.5881-4

NOTICE TO SHAREHOLDERS

DELIBERATION OF INTEREST ON OWN CAPITAL

Telefônica Brasil S.A. - ("Company") announces to its shareholders that the Board of Directors, at its meeting held on September 17, 2020, deliberated the credit of Interest on Own Capital ("IOC"), related to the fiscal year of 2020, in accordance with article 28 of the Company's Bylaws, article 9 of the Law 9,249/95 and CVM's Instruction No. 683/2012, in the gross amount of R$ 650,000,000.00 (six hundred and fifty million reais), subject to withholding tax of 15%, resulting in a net amount of R$ 552,500,000.00 (five hundred and fifty-two million, five hundred thousand reais), based on the balance sheet of August 31, 2020. The estimated value per share is described in the table below:

	Immune or Exempt		Taxed Legal
	Withholding tax	Entities and
Amount per share (R$)	Legal Entities (gross
(15%)	Individuals (Net
	value)
		value)
Common shares	0.36098521785	0.05414778268	0.30683743517
Preferred shares (*)	0.39708373964	0.05956256095	0.33752117869

1. 10% higher than the amount granted to each common share, in accordance with article 7 of the Company's Bylaws.

In accordance to the article 28 of the Company's Bylaws, such Interest on Own Capital will be charged to the mandatory minimum dividend for the fiscal year of 2020, ad referendum of the General Shareholders' Meeting to be held in 2021.

The credit of Interest on Own Capital will be made on individual basis for each shareholder, in accordance to the shareholder registry book position by the end of September 28, 2020. After this date, the shares will be considered as "ex-Interest on Own Capital". The payment of these proceeds will be carried out before the end of the fiscal year of 2021, in a date to be defined by the Company's Board.

TELEFÔNICA BRASIL S.A.

Public-held Company

CNPJ MF 02.558.157/0001-62 - NIRE 35.3.001.5881-4

The Immune or Exempt Legal Entities, according to the current legislation, must provide proof of such condition until October 5, 2020 to the "Departamento de Ações e Custódia" of Banco Bradesco S.A., the depositary bank, located at Cidade de Deus, s/n, Amarelo Velho Building, sub-solo - Vila Yara - Zip Code: 06029-900 - Osasco - SP.

Note: Values of Interest on Capital per common and preferred share may suffer future adjustments until September 28, 2020, due to possible acquisitions of shares within the Program for the Buyback of Shares to be held in treasury for subsequent sale and/or cancellation.

São Paulo, September 17, 2020.

David Melcon Sanchez-Friera

CFO and Investor Relations Officer

Telefônica Brasil - Investor Relations

Tel: [phone]

Email: [e-mail]

Information available at: www.telefonica.com.br/ir