Eusébio-CE, October 26th, 2015 – M. Dias Branco (BM&FBovespa: MDIA3), the food company that is leader in the Brazilian cookies, crackers and pasta markets, operating also in the wheat flour and bran, margarine, vegetable shortening, snacks, cakes, cake mix and packaged toast segments, hereby informs the market that, at the Board of Directors’ meeting held on October 26, 2015, the Board members unanimously decided, to approve the cancellation of all 450,000 (four hundred and fifty thousand) shares held in treasury, without reducing the capital stock, shares were acquired by the Company through its share buyback program, approved at the Board of Directors meeting held on April 27, 2015, under Article 14, IX of the Bylaws, and based on the provisions of CVM Instruction No. 10/80 and its subsequent amendments.

Due to the cancellation of these shares, the Company‘s capital stock, which is R$ 1,701,691,821.23 (one billion, seven hundred and one million, six hundred and ninety-one thousand eight hundred and twenty-one reais and twenty three cents), is now divided into 113,000,000 (one hundred and thirteen million) common shares, all nominative, without nominal value.

The amendment to Article 5 of the Bylaws, to assign the new number of shares representing the Company‘s capital stock will be submitted to the first General Meeting to be held after the date of this approval.