NOTICE TO THE MARKET

SHARE CONVERSION

Banco do Estado do Rio Grande do Sul S.A. (Banrisul), considering the option to convert its class A preferred (PNA) shares into common (ON) shares or class B preferred (PNB) shares issued by the Company, hereby notifies, for knowledge and disclosure, that, after conversion of 400 (four hundred) class A preferred shares into class B preferred shares, the Company's capital stock was altered, as shown below:

Capital Stock on November 23, 2012, date of last modification.

Common Shares: 205,043,374
Class A Preferred Shares: 3,542,777
Class B Preferred Shares: 200,388,326
Total 408,974,477

Capital Stock after Conversions as of January 30, 2013.

Common Shares: 205,043,374
Class A Preferred Shares: 3,542,377
Class B Preferred Shares: 200,388,726
Total 408,974,477

João Emílio Gazzana
CFO and Investor Relations Officer
Banco do Estado do Rio Grande do Sul S.A. - Banrisul

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