Companhia Energetica de Minas Gerais : TAESA - EGM approves acquisition of operating assets

COMPANHIA ENERGÉTICA DE MINAS GERAIS -

CEMIG

LISTED COMPANY - CNPJ 17.155.730/0001-64 - NIRE 31300040127

MATERIAL ANNOUNCEMENT

Cemig (Companhia Energética de Minas Gerais, listed in São Paulo, New York and Madrid), in compliance with CVM Instruction 358 of January 3, 2002 as amended, hereby reports to the Brazilian Securities Commission (CVM), the São Paulo Stock Exchange (B3) and the market as follows:

Cemig's affiliated company Transmissora Aliança de Energia Elétrica S.A. ('Taesa') has today published the following Material Announcement:

"Transmissora Aliança de Energia Elétrica S.A. ("Company" or "Taesa"), pursuant to the Securities and Exchange Commission's Instruction No. 358, from January 3, 2002, as amended, and for the purposes of Paragraph 4 of Article 157 of Law 6404, from December 15, 1976, as amended ("Brazilian Corporation Law"), hereby announces to its shareholders, the market in general and other interested parties, continuing the material fact disclosed on December 17, 2018, that, the Company's Extraordinary General Meeting approved, on this date, the acquisition by the Company of (i) 100% of the shares representing the total and voting capital of São João Transmissora de Energia S.A. ("SJT") and São Pedro Energia Transmissora de Energia S.A. ("SPT"), and (ii) 51% of the shares representing the total and voting capital of Triangulo Mineiro Transmissora de Energia S.A. ("TMT") and Vale do São Bartolomeu Transmissora de Energia S.A. ("VSB") (the "Acquisition"), in accordance with the Company's Bylaws, pursuant to its article 12, first paragraph, subparagraph 'o', and with the provisions of Article 256 of the Brazilian Corporation Law, given that it constitutes a material investment, under the terms of article 247 of the said Law.

It is important to note that the closing and accomplishment of the Acquisition are subject to certain precedent conditions, including, among others, (a) regulatory authorizations of ANEEL and CADE; (b) the non-exercise of the preemptive right by Furnas Centrais Elétricas S.A. ("Furnas") in relation to shares issued by TMT and the non-exercise of the preemptive right by Furnas and CELG Geração e Transmissão S.A. in relation to shares issued by VSB; (c) confirmation of fulfillment of the obligations set forth in the Leniency Agreement signed by J&F Investimentos S.A. and the Sellers, including the commitment that no indemnifying or sanctioning measures be proposed against the purchaser; and (d) non-occurrence of material adverse effect.

The Company will keep its shareholders and the market informed on a timely manner in accordance with current legislation on the development of the matters covered in this Material Fact."

Belo Horizonte, January 03, 2019.

Maurício Fernandes Leonardo Júnior Chief Finance and Investor Relations Officer

Av. Barbacena 1200

Santo Agostinho

30190-131 Belo Horizonte, MGBrazilTel.: [phone]

Fax [phone]

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This text is a translation, provided for information only. The original text in Portuguese is the legally valid version.