Ultrapar Participações S.A. Market Announcement - Ultrapar, Through its Subsidiary Ipiranga, Enters into a Joint Venture Agreement with Chevron to Create a New Company in the Lubricants Business

SAO PAULO, Aug. 4, 2016

The JV will combine two highly complementary and experienced companies in this business, aiming at value creation by sharing best practices and strengthening its position in the competitive Brazilian lubricants market. The combination of the two businesses increases the capillarity of the sales channels in Brazil through Ipiranga's network of 7,241 service stations, 1,473 of which with Jet Oil (Ipiranga's specialized car care services), as well as through Ipiranga's and Chevron's lubricant distributors network. The JV will market lubricants, greases, additives and coolants under Ipiranga and Chevron brands.

In 2015, Ipiranga sold 206 thousand cubic meters of lubricants, greases and fluids and recorded revenues of R$ 1.1 billion. In the same period, Chevron sold 145 thousand cubic meters of lubricants, greases and coolants in Brazil and recorded estimated revenues of R$ 0.9 billion.

This transaction is subject to approval of the competent regulatory authorities, notably the Brazilian antitrust regulation agency CADE ("Conselho Administrativo de Defesa Econômica").

Contact: +55 (11) 3177-7014

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SOURCE Ultrapar Participacoes S.A.