Centrais Eletricas Brasileiras : Market Annoucement 05 10 17 - Eletropaulo

Market Announcement CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general, in addition to the Relevant Fact published on October 4, 2017, that the mediation with Eletropaulo Metropolitana Eletricidade de São Paulo S.A. ("Eletropaulo") has not yet commence and that as of the days hereof there is no maximum or minimum amount previously determined by the parties.

Eletrobras is a governamental owned company and any negotiation depends on the prior and fair evaluation and corporate approvals, as well as relevant internal and external controls.

The Company also clarifies that, as stated in Explanatory Note 8.1 of its Quarterly Finacial Reports for the period ended June 30, 2017, the Company believes the total amount owed to be BRL2,757,430 thousand, of which BRL350,399 thousand was already included in the assets, under loans and other financings. Additionally, the total loss fees were set at 15% in the law suit, or BRL413,614 thousand, totalling BRL3,171,044 thousand.

Rio de Janeiro, October 5, 2017.

Armando Casado de Araujo

CFO and Investors Relations Officer