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Notice to the Market

Oi S.A. - In Judicial Reorganization
CNPJ/MF Nº 76.535.764/0001-43
NIRE 33.30029520-8
Publicly-Held Company


Oi S.A. - In Judicial Reorganization, ("Oi" or the "Company") hereby informs its shareholders and the market in general that it learned on this date of a judgement rendered on July 30, 2018 by the Commercial Court of Lisbon - Judge Number 2 of the Judicial Court of the Region of Lisbon (the "Portuguese Court"), which rejected at this moment the request submitted by the Company and its subsidiaries Telemar Norte Leste - In Judicial Reorganization, Oi Móvel S.A. - In Judicial Reorganization, Copart 4 Participações S.A. - In Judicial Reorganization and Copart 5 Participações S.A. - In Judicial Reorganization (jointly, the "Recovering Entities") seeking the recognition in Portugal of the decision rendered by the 7th Corporate Court of the Judicial District of the Capital of Rio de Janeiro (the "Reorganization Court") on January 8, 2018 and published on February 5, 2018, which confirmed the Judicial Reorganization Plan of the Recovering Entities that was approved at the General Meeting of Creditors held on December 19 and 20, 2017 (the "Plan").

According to the Portuguese Court, the recognition in Portugal of the Reorganization Court’s decision to confirm the Plan would require that it had transited in rem judicatum.

Oi respectfully disagrees with the Portuguese Court’s understanding and clarifies that it intends to file the applicable appeal against its judgement with the Lisbon Court of Appeals, because it understands that such judgement is not consistent with the two decisions already rendered in the same Commercial Court of Lisbon, which already recognized and safeguard, in Portugal, the opening and processing of the Recovering Entities’ Judicial Reorganization Proceedings in Brazil, and is also in disaccord with the decisions recently rendered by the Courts in the United States of America and The Netherlands which recognized in those jurisdictions the Plan confirmation decision and its full effectiveness, pursuant to the Notices to the Market disclosed by Oi on August 21, 2017 and June 11 and 14, 2018.

The judgement was grounded on formal aspects and the Portuguese Court has not commented on the Plan’s merits. In this context, Oi reiterates that this judgement does not affect the integrity, validity and complete effectiveness of the Plan, which implementation has been secured by the Reorganization Court.

The full content of the Portuguese Court aforementioned judgement is attached to this Notice to the Market and is also available for download at the Company’s website (www.oi.com.br/ri), at CVM’s Sistema Empresas.NET (www.cvm.gov.br), in addition to the B3 S.A. - Brasil, Bolsa, Balcão website (www.bmfbovespa.com.br) as soon as possible. The Company will disclose to the US Securities and Exchange Commission the English translated version of the Court decision as soon as it becomes available, as per Form 6-K.

The Company will keep its shareholders and the market informed about the development of the subject-matter of this Notice to the Market.

Rio de Janeiro, August 1, 2018.

Oi S.A. - In Judicial Reorganization
Carlos Augusto Machado Pereira de Almeida Brandão
Chief Financial Officer and Investor Relations Officer

Click here for the pdf file.

(¹) This translation is still subject to the auditors review

(¹) This translation is still subject to the auditors review