MARFRIG GLOBAL FOODS S.A.

Public Company

Taxpayer ID (CNPJ/MF): 03.853.896/0001-40

(B3: MRFG3)

NOTICE TO THE MARKET

São Paulo, August 23, 2018 - Marfrig Global Foods S.A. ("Marfrig" or "Company") hereby informs, in accordance with Article 157, Paragraph 4 of Federal Law 6,404/76 and with Instruction 358/2002 issued by the Securities and Exchange Commission of Brazil, that risk rating agency S&P Global upgraded the Company's credit rating from B+ to BB-, in light of the improvement in the Company's leverage profile following the conclusion of the acquisition of National Beef and the announced divestment of the Keystone Foods business unit.

Additionally, rating agency Fitch confirmed the rating of BB-, highlighting the transactions as positive.

Regarding the put option agreed with the minority shareholders of National Beef we would like to clarify that it guarantees the maintenance of both the current shareholding structure and the Senior Management of the company for 5 years. Therefore, this put option can only be exercised partially, as of 2023, in the proportion of 1/3 of the participation of each partner and for the market value to be determined at the time.

It is worth mentioned that in the minority shareholding of 49%, 15% are cattle ranchers who have long-term supply contracts.

José Eduardo de Oliveira Miron Chief Financial and Investor Relations Officer

Marfrig Global Foods S.A.

IR CONTACTS

Av. Queiroz Filho, 1560 - Bloco 5 (torre Sabiá) - 3º andar (sala 301) - Vila Hamburguesa - São Paulo - SP - CEP: 05319-000

Telephone: +55 (11) 3792-8907www.marfrig.com.br/rie-mail:ri@marfrig.com.br

Attachments

Disclaimer

Marfrig Global Foods SA published this content on 23 August 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 August 2018 13:46:02 UTC