AES Tiete : Material Fact - Closing of the Guaimbê Solar Complex

AES TIETÊ ENERGIA S.A.

Public Corporation

Corporate Taxpayer ID (CNPJ/MF): 04.128.563/0001-10

Company Registry (NIRE): 35.300.183.550

MATERIAL FACT

AES TIETÊ ENERGIA S.A. ("AES TIETÊ" or "Company") (B3: TIET11, TIET3, TIET4), in compliance with Paragraph 4, Article 157 of Federal Law 6,404/76 and in accordance with CVM Instruction 358 of January 3, 2002 and other applicable provisions, hereby announces to its shareholders and the market that:

On the date hereof, the Company concluded the acquisition of all shares representing the capital stock of five (5) specific purpose entities ("Transaction" and "SPEs") comprising the Guaimbê Solar Complex ("Complex" or "Guaimbê"), all of which are subsidiaries of Cobra Brasil Serviços, Comunicações e Energia S.A. ("Cobra do Brasil").

In accordance with the Material Fact of September 25, 2017, the original investment made by the Company, before working capital adjustments, was R$650 million. After working capital adjustments, the investment amounts to R$607 million, which includes: i) the acquisition of all shares representing the capital stock of the SPEs, in the total amount of R$137 million, subject to the adjustments typical to transactions of this kind, which the Parties expect to occur within 45 days as from the settlement date of the Transaction, to be paid in cash; and ii) R$470 million subscribed in the form of debentures issued by the SPEs and acquired by the Company.

With 150 MW of installed capacity and a PPA with duration of 20 years, Guaimbê is the first major investment in solar power in the state of São Paulo. The Complex already is operational and should contribute projected annual EBITDA, after inflation adjustment, in the range of R$75 million to R$85 million to the Company's consolidated results, in accordance with the Material Fact notice dated August 6, 2018.

The Company shall call a special shareholders' meeting to deliberate on the approval of the Transaction, pursuant to Article 256, II, "b" and Paragraph 2 of the Brazilian Corporations Act, which gives dissenting shareholders the right to withdraw and collect compensation for their shares at book value of the shares, in case they dissent from the deliberation.

Barueri, September 04, 2018

AES TIETÊ ENERGIA S.A.

Clarissa Della Nina Sadock Accorsi

Executive Vice-President and Investor Relations Officer