Companhia de Saneamento de Minas Gerais

COMPANHIA DE SANEAMENTO DE MINAS GERAIS - COPASA MG

PUBLICLY-HELD COMPANY COMPANY REGISTRY (NIRE): 313.000.363-75

CORPORATE TAXPAYER'S ID (CNPJ/MF): 17.281.106/0001-03

NOTICE TO THE MARKET DISTRIBUTION OF INTEREST ON EQUITY

The Companhia de Saneamento de Minas Gerais - COPASA MG hereby announces to its shareholders that the Board of Directors' Meeting held on January 29, 2014 approved the distribution of Interest on Equity (IOE) in the gross amount of R$34,079,814.56 (thirty-four million, seventy nine thousand, eight hundred and fourteen reais and fifty six cents of real), related to the fourth quarter of 2013, with due regard for the following conditions:
a) Shareholders shall receive the gross amount of R$0.2855996764 (zero point two, eight, five, five, nine, nine, six, seven, six, four cents of real) per share;
b) The withholding income tax will be deducted from the amounts above, pursuant to the applicable legislation, which will be paid net of said tax, expect for those shareholders who are exempt from it;
c) Shareholders owning position on February 03, 2014 will be entitled to receive the aforementioned amounts. Shares shall be traded ex-IOE as of February 04, 2014;
d) The date of payment of the IOE to the shareholders will be established by the Annual Shareholders'
Meeting that resolves on the earnings results for the fiscal year 2013;
e) The IOE amount will be imputed to the mandatory dividends for the fiscal year 2013; and
f) Shareholders whose registration data do not provide their individual or corporate taxpayer number (CPF/CNPJ) or bank, branch and current account data will have their rights credited after they update their registration data at any branch of Banco Itaú Unibanco.
Further information: Companhia de Saneamento de Minas Gerais - COPASA MG. Rua Mar de Espanha, 525, Bairro Santo Antônio, CEP 30330-900. Belo Horizonte - MG, phone: +55 31 3250-2015, e-mail: ir@copasa.com.br.
Belo Horizonte, January 30, 2014
Paula Vasques Bittencourt
Chief Financial and Investor Relations Officer

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