NOTICE TO THE MARKET

Kroton Educacional S.A. ("Kroton") and Estácio Participações S.A. ("Estácio", and, jointly with Kroton, the "Companies") announce that, on the date hereof, they presented to the Brazil’s antitrust agency CADE (Conselho Administrativo de Defesa Econômica) the Act of Concentration for the business combination of the Companies ("Operation"), in accordance with the agreement and plan of merger of the shares of Estácio into Kroton, entered into on July 8, 2016 ("Merger Agreement") and announced through the Material Fact notices dated July 8, 2016 and July 14, 2016. The Companies will cooperate fully with CADE as needed so that the Autonomous Agency can issue its decision on the Operation.

The Companies will keep their shareholders and the market informed of further developments in this matter.

Belo Horizonte, August 31, 2016.

Carlos Alberto Bolina Lazar
Investor Relations Officer
Kroton Educacional S.A.

Pedro Thompson
Investor Relations Officer
Estácio Participações S.A.

For more information, please contact our investor relations department:

Carlos Lazar - Director
Carolina Igi - Coordinator
Pedro Gomes - Coordinator

Phone: +55 (11) 3133-7309 / +55 (11) 3133-7314 / +55 (11) 3133-7311
Email: dri@kroton.com.br
www.kroton.com.br/ir


Contact IR

Phone: (55 11) 3133-7309
E-mail: dri@kroton.com.br