MARKET ANNOUNCEMENT

CENTRAIS ELÉTRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 | NIRE: 533.0000085-9

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") (B3: ELET3, ELET5 & ELET6; NYSE:

EBR & EBR.B; LATIBEX: XELT.O & XELT.B) hereby, informs its shareholders and the market in general that according to public civil lawsuit No. 1000435-98.2019.4.01.3306, the process of transferring the management and operation of Hospital Nair Alves de Souza ("HNAS") to the Federal Government, State of Bahia and Paulo Afonso Municipality ("Government"), which was under the responsibility of the Companhia Hidro Elétrica do São Francisco (" Chesf ") since the construction of the Paulo Afonso Power Plant.

The ruling condemned jointly the Government to partially and progressively assume HNAS to a minimum of 25% (twenty five percent) per quarter from January 1, 2020, reducing Chesf's liability on HNAS in a quarterly basis in equal proportion, so that from January 1, 2021, 100% (one hundred percent) of the management and operation of HNAS will be assumed by the Government, with complete exit of Chesf.

During 2019, Chesf incurred expenses with HNAS in the approximate amount of R$ 56 million.

The Company will keep the market informed about this market announcement.

Rio de Janeiro, January 8, 2020

Elvira Cavalcanti Presta

CFO and Investor Relations Officer

Internet: www.eletrobras.com/elb/ri

E-mail: ombudsman-ri@eletrobras.com

Address: Rua da Quitanda, 196 - 9º andar. 20091-005, Centro. Rio de Janeiro - RJ Telefone: (21) 2514-6333 / 4627

EBR & EBR.B

LISTED

ELET3 & ELET6

NYSE

This document may contain estimates and projections that are not statements of fact that occurred in the past but reflect our management beliefs and expectations and may constitute forward-looking statements and estimates under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words "believe", "may", "may", "estimate", "continue", "anticipate", "intend", "expect" and the like are intended to identify estimates that necessarily involve risks and uncertainties, known or unknown . Known risks and uncertainties include, but are not limited to: general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and value of the Real, changes in volumes and the pattern of electric energy use by consumer, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric power plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with CVM and SEC. Estimates and projections refer only to the date they were expressed and we assume no obligation to update any of these estimates or projections due to the occurrence of new information or future events. Future results of the Company's operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein. This material contains calculations that may not reflect accurate results due to rounding.

Attachments

Disclaimer

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 08 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 January 2020 22:12:13 UTC