Hypermarcas : Notice to the Market - Drugs Recall

HYPERMARCAS S.A.

A Publicly-Held Corporation

CNPJ/MF No. 02.932.074/0001-91 NIRE 35.300.353.251

NOTICE TO THE MARKET

HYPERMARCAS S.A. (the "Company" or "Hypermarcas") informs that, regarding the news broadcasted by the press today, Brainfarma Indústria Química Farmacêutica S.A., its subsidiary responsible for the manufacturing of drugs, has voluntarily recalled 119 lots of medicines from the market, mostly generics and branded generics, manufactured between January and March, 2016. There are no indications that the use of such drugs may cause adverse health effects besides those listed in the package insert.

The voluntary recall was due to operational error in the weighing procedure, as a result of the use of the former weighing area of the plant during the transition of this operation to the new weighing center. The weighing was mainly of drug excipients (components other than the active ingredient).

Such lots represent 0.9% of the annual volume manufactured by the Company and the recall of such products will generate an immaterial cost to Hypermarcas, having no impact on the Company's businesses.

São Paulo, January 03rd, 2017.

HYPERMARCAS S.A.

Breno Toledo Pires de Oliveira

Investor Relations Officer