JHSF PARTICIPAÇÕES S.A. Corporate Taxpayers ID (CNPJ): 08.294.224/0001-65 / Company Registry (NIRE): 35.300.333.578 Publicly-Held Company NOTICE TO THE MARKET

JHSF Participações S.A. ("JHSF" or "Company"), as a complement to the Material Fact dated November 29, 2013, hereby informs the financial closing of the operation involving the issue and early redemption of the debentures of the Company and its subsidiaries ("Operation"):
. The Operation involved the issuance of debentures by the Company and its subsidiaries, for a total amount of R$800 million, with a term of ten years, due in semi-annual installments beginning in June 2016, inclusive, (30-month grace period for the principal), at a cost of CDI+2.70 per annum. The debentures are simple (non-convertible) and unsecured, with additional collateral ("Debentures"). The additional collateral consists of the first-degree mortgage of the Shopping Cidade Jardim mall and the credit rights from this real estate's commercial leases.
. The Debentures were offered to the public, with restricted distribution efforts, and under the firm guarantee of BB - Banco de Investimento S.A. e Banco Bradesco BBI S.A. The completion of the public offering was communicated today to the Brazilian Securities and Exchange Commission (CVM).
. The Operation involved the early redemption of JHSF's second and third debenture issues, which took place yesterday. The second issue of debentures had a balance of approximately R$258.0 million, at a cost of CDI+1.50 per annum, with amortization beginning in February 2014 and final maturity in August 2015. The third issue of debentures had a balance of approximately R$281.6 million, at a cost of IPCA+9.00 per annum, with amortization beginning in December 2013 and final maturity in December 2020.
. We estimate that after the Operation, the nominal weighted cost of JHSF's consolidated debt improved from 11.48% to 11.31%1; the weighted average term to maturity improved from 4.4 years to 6.1 years; and the maturing debt in 2014-2015 decreased by 41%, from R$922.3 million to R$545.0 million.
São Paulo, December 19, 2013
Eduardo S. Camara
Vice President and Investor Relations Officer

1 Based on a CDI of 9.77% per annum, IPCA of 6.00% per annum, TJLP of 5.00% per annum, TR of 1.00% per annum and Libor6M of 0.18% per annum.

distributed by