Société Anonyme

Registered Office: 22/24 boulevard Royal, L-2449 Luxembourg

R.C.S. Luxembourg B 22.232

ESPÍRITO SANTO FINANCIAL GROUP S.A. - information on Tranquilidade

Luxembourg/Portugal - 29 August 2014- Espírito Santo Financial Group S.A. ("ESFG" or "The Company") (NYSE Euronext Lisbon: ESF; Bloomberg: ESF PL; Reuters ESF LS) informs on its shareholding in Companhia de Seguros Tranquilidade S.A.("Tranquilidade"):

(i) ESFG holds through its subsidiaries Partran - SGPS, S.A. ("Partran") and Espírito Santo Financial (Portugal) SGPS, S.A. shares representing 100% of the share capital and voting rights of Tranquilidade (the "Shares");

(ii) The Shares are pledged to Novo Banco S.A. ("Novo Banco"), giving it the right to sell or keep the Shares if ESFG fails to comply with its commitments under the terms of the guarantee and financing agreement which the pledge of the shares is guaranteeing;

(iii) Although notified by Novo Banco of a failure to make a payment and given a new deadline for such payment, ESFG was not able to pay.

As a consequence, Novo Banco notified ESFG of the termination of the financing agreement which the pledge of the shares is guaranteeing.
However ESFG has not been notified of the execution of the pledge, either by appropriation or by sale of the Shares to a third party, and therefore concludes that it is still the owner of the Shares in the precise terms described under (i) above;

(iv) ESFG is carrying out full due diligence on the terms and conditions of the guarantee and financing agreement and in particular those under which the pledge of the Shares was granted;

(v) ESFG thinks that the pledge may be illegal and has informed Novo Banco and other relevant entities of this preliminary conclusion.

Should the final conclusion of the due diligence on this matter confirm such conclusion, ESFG will legally react against the pledge of the Shares, its execution and any sale of the same that could both potentially be carried out by Novo Banco in the meantime, in the manner that it considers to better protect the interests of all its stakeholders, notably its creditors.

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