Kroton Educacional : Notice to the Market - FAIR/FAC/FAMAT

KROTON EDUCACIONAL S.A.

Publicly Held Company

Corporate Taxpayer ID (CNPJ/MF): 02.800.026/0001-40 Company Registry (NIRE): 31.300.025.187

NOTICE TO THE MARKET

Kroton Educacional S.A. ("Kroton" or "Company") hereby announces to its shareholders and the general market that it concluded today the sale to Treviso Empreendimentos e Participações S.A. ("Buyer"), a company controlled by the private equity funds managed by TCG Gestor Ltda., Santander Securities Services Brasil DTVM S.A. and Vinci Capital Gestora de Recursos Ltda., of all equity interest held by Kroton's subsidiaries ("Sellers") in the operators of the following institutions: Faculdades Integradas de Rondonópolis, Instituto de Ensino Superior de Cuiabá and Faculdade de Mato Grosso ("FAIR/FAC/FAMAT").

The Buyer will pay the Sellers the estimated amount of fifty million reais (R$50,000,000.00), subject to any final adjustments for working capital and net debt, in accordance with the respective purchase agreement.

The sale of FAIR/FAC/FAMAT was contracted by Sellers in connection with the divestment of Sociedade Educacional Leonardo da Vinci S/S Ltda.; ASSEVIM - Sociedade Educacional do Vale do Itajaí Mirim Ltda.; Instituto Educacional do Alto Vale do Itajaí Ltda.; Sociedade Educacional do Vale do Itapocu S.S. Ltda.; and Sociedade Educacional do Planalto Serrano Ltda. (jointly referred to as "Uniasselvi"), addressed in the Material Fact notices previously released to the market, and aims to comply with the Concentration Control Agreement (ACC) entered into with Brazil's antitrust agency Conselho Administrativo de Defesa Econômica ("CADE") on May 14, 2014, in connection with the approval of the Association Agreement between Kroton and Anhanguera Educacional Participações S.A.

Belo Horizonte, August 31, 2017

Carlos Alberto Bolina Lazar Investor Relations Officer Kroton Educacional S.A.