CNPJ 97.837.181/0001-47 A Publicly Listed Company

MATERIAL FACT

SALE OF INSTALLATION AND EQUIPMENT DEDICATED TO THE

PRODUCTION OF THIN WOOD FIBER BOARD (HARDBOARD)

DURATEX S.A. ("Duratex" or "Company") hereby announces to its shareholders and the market in general that it has received and accepted, through itself or its subsidiaries, on January 31st, 2018, the Binding Offer from EUCATEX Economic Group entailing the purchase of installation and equipment dedicated to the production of Thin Wood Fiber Board (Hardboard).

The production of Thin Wood Fiber Board (Hardboad) takes place in the city of Botucatu since 1973. This complex currently holds the effective capacity of 200k m3 panels per year and employs 280 workers.

The evolution of the wood panel market in Brazil, and the decision to retake activities in the unit of Itapetininga, scheduled for April 2018, has made these lines, which are dedicated mainly towards exports, small within Duratex's solution portfolio, losing relevance within the Company's strategy.

The transaction entails the exchange of this installation and equipment for a production farm located in the city of Capão Redondo, in the State of São Paulo, strategically closer to Duratex's unit in Itapetininga. The remaining lines of Thick and Thin Wood Fiber Board (MDF and HDF) continue to be operated as usual by Duratex.

The acceptance of the Binding Offer by Duratex shall not have material effects on its results or on its previously signed contracts

Duratex will celebrate a contract for the supply of timber towards the operations of Thin Wood Fiber Board (Hardboad), for a maximum of 7 years.

According to legal conditions, the consummation of this operation is conditioned to the approval of the Conselho Administrativo de Defesa Econômica - CADE. The management of the lines remains with Duratex in the regular production standards for the time being.

In the Company's understanding, this transaction is beneficial to both parties, to the market, which continues to be supplied, and especially to society, with the maintenance of employment and tax payments. Duratex reaffirms its commitment with stakeholders to maximize the returns of its operations, through the best use of its assets and the increment of its efficiency and competitiveness in the market.

São Paulo (SP), January 31st, 2018.

DURATEX S.A.

Carlos Henrique Pinto Haddad

Investor Relations Officer

Duratex SA published this content on 31 January 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2018 22:59:04 UTC.

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