<SEC-DOCUMENT>0001292814-18-002655.txt : 20180801
<SEC-HEADER>0001292814-18-002655.hdr.sgml : 20180801
<ACCEPTANCE-DATETIME>20180801075527
ACCESSION NUMBER:		0001292814-18-002655
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20180930
FILED AS OF DATE:		20180801
DATE AS OF CHANGE:		20180801

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
		CENTRAL INDEX KEY:			0001170858
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31317
		FILM NUMBER:		18983058

	BUSINESS ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
		BUSINESS PHONE:		011-55-11-3388-8000

	MAIL ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sbs20180724_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Washington, DC 20549 </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORM 6-K</B></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>REPORT OF FOREIGN ISSUER</B><BR><B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>

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<DIV><FONT color=#000000 size=2 face="Times New Roman"><B>For&nbsp;July, 2018</B></FONT></DIV><FONT color=#000000 size=2 face="Times New Roman"><B>(Commission File No. 1-31317) </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Exact name of registrant as specified in its charter) </I></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Translation of Registrant's name into English) </I></FONT></DIV>

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<BR>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><B>Rua Costa Carvalho, 300 <BR>S&#227;o Paulo, S.P., 05429-900 <BR>Federative Republic of Brazil </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Address of Registrant's principal executive offices) </I></FONT></DIV><BR>

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<BR>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark whether the registrant files or will file <BR>annual reports under cover Form 20-F or Form 40-F. <BR><BR>Form 20-F ___X___ Form 40-F ______</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(1)__.</FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">Indicate by check mark if the registrant is submitting the Form 6-K <BR>in paper as permitted by Regulation S-T Rule 101(b)(7)__.</FONT></DIV>

<P align=center><FONT size=2 face="'Times New Roman, Times, Serif'">Indicate by check mark whether the registrant by furnishing the <BR>information contained in this Form is also thereby furnishing the <BR>information to the Commission pursuant to Rule 12g3-2(b) under <BR>the Securities Exchange Act of 1934. <BR><BR>Yes ______ No ___X___</FONT></P>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">If "Yes" is marked, indicated below the file number assigned to the<BR>registrant in connection with Rule 12g3-2(b):</FONT> </DIV>

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   <TD style="BORDER-TOP: #999999 1pt solid; HEIGHT: 16.4pt; BORDER-RIGHT: #999999 1pt solid; BORDER-BOTTOM: #999999 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" width="89%" colSpan=4>

   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align=center><B><FONT><FONT face=verdana,sans-serif><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=verdana,sans-serif>Organizational Instrument </FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Phase:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Institutional Policy</FONT></B></FONT></FONT></B><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>In effect</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>TRANSACTIONS WITH RELATED PARTIES</FONT></B></FONT><B><FONT><FONT></FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI0032 &#8211; V.1</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Effect of the first version as of:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Expiry date of this version as of:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PK</FONT></FONT><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT style="FONT-SIZE: 7pt" face=Arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT><FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Related Areas (Scope):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Processes:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>-</FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0in 0in 0pt"><FONT><FONT lang=EN-US style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT></FONT>&nbsp;</P></DIV>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>1.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Introduction</FONT></B></H1>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 0in 1.85pt 0pt 21.3pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>The purpose of this Institutional Policy is to provide guidance for handling </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>, in order to preserve the interests of </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Sabesp</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif> and to guarantee full independence and the absolute transparency of the process.</FONT></P>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>2.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Objective</FONT></B></H1>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>2.1</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>To set criteria to be observed in </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>.</FONT></H2>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>2.2</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>To set the procedures to be followed in situations involving a potential </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>conflict of interest</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif> in </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>.</FONT></H2>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 12pt 0in 12pt 21.25pt; TEXT-INDENT: -21.25pt"><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>3.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Guidelines</FONT></B></H1>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.1</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Identification of </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>related-parties</FONT></I></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.1.1&nbsp;&nbsp;&nbsp; </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Related-parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> of </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Sabesp</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> are:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(a) Individuals and their </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>close family members</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>, if:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(i)&nbsp;&nbsp; they have </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>significant influence</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> over the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(ii)&nbsp; they are members of the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>key management personnel </FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>of the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company&#8217;s </FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>parent; or</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iii) they are member of Company&#8217;s </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>management</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(b) Legal entities, if they are:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(i)&nbsp;&nbsp; members of the same </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>business group</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> as </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Sabesp</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(ii) </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>subsidiaries, joint ventures</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> or </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>affiliates</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> of </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Sabesp</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iii) post-employment benefit plans whose beneficiaries are the employees of the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -21.2pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iv) &nbsp;&nbsp;&nbsp; companies </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>controlled by</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> or </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>joint ventures</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> of the individuals listed in 3.1.1 (a).</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.2</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Criteria for executing </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>transactions with related parties</FONT></I></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.2.1&nbsp;&nbsp;&nbsp; To execute </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> the following must be observed, as a minimum:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(i) &nbsp; the impact of its execution, including reputation risks;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(ii) performance on </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>market conditions</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iii) justification for executing transactions other than on </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>market conditions</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> and the need for compensatory payment.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.2.2 &nbsp;&nbsp; </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> must be analyzed and documented, detailing the terms of each transaction and the purpose of the business.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.3</FONT><FONT style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Prior analysis of </FONT><I><FONT style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>transactions with related parties </FONT></I></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.3.1&nbsp; &nbsp; They must be analyzed in advance by the Audit Committee if the amount involved exceeds R$20,000,000.00 (Twenty million </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Reais</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>), or if amendments to the contract increase the contract value with a </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>related-party</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> to more than R$20,000,000.00 (twenty million </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Reais</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>).</FONT></P></DIV>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Phase:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Institutional Policy</FONT></B></FONT></FONT></B><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>In effect</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>TRANSACTIONS WITH RELATED PARTIES</FONT></B></FONT><B><FONT><FONT></FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI0032 &#8211; V.1</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Effect of the first version as of:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Expiry date of this version as of:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PK</FONT></FONT><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT style="FONT-SIZE: 7pt" face=Arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT><FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Related Areas (Scope):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Processes:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>-</FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0in 0in 0pt"><FONT><FONT lang=EN-US style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.3.2 &nbsp;&nbsp; If necessary, the Audit Committee may request a market alternative to the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transaction with related party</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> concerned, adjusted for the risk factors involved whenever possible.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.3.3&nbsp;&nbsp;&nbsp; After its analysis, the Audit Committee must report to the Board of Directors its conclusions as to whether a </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transaction with a related party</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> is in line with this Policy and the applicable rules.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.4</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Approval level for </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>. </FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 49.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>The approval levels for </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> are the same as those for contracts with unrelated third parties (which vary depending on the amount, type of business, nature and so on).</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.5</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif> with specific rules</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.5.1&nbsp;&nbsp;&nbsp; The following </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transactions with related parties</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> are not covered by this Policy and must observe specific rules, including rules for approval and disclosure:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(i)&nbsp;&nbsp; dividends and interest on equity; and</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(ii)&nbsp; compensation and benefits of any nature to the members of</FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> management</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.6</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Prohibited transactions</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Loans may not be granted to the controlling shareholder or to the individuals listed in item 3.1.1 (a).</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.7</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Situations involving a potential </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>conflict of interest</FONT></I></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt 85.05pt; TEXT-INDENT: -35.4pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.7.1&nbsp;&nbsp;&nbsp; In situations that could involve a </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>conflict of interest</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> between an individual and the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>, </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>members of the statutory bodies </FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>must:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(i)&nbsp;&nbsp; formally and timely declare their impediment, as soon as they become aware of the fact;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(ii) abstain from discussing or voting on the matter;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iii)&nbsp; have their interest noted in the minutes of the meeting in question;</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 106.35pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>&nbsp;(iv) absent themselves from discussions and resolutions.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -42.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.7.1.1 &nbsp; At the request of the chairman or coordinator of the statutory body, the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>member of the statutory body</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> who has declared an interest may take part in the discussions, in order to provide additional information on the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>transaction with a related party</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>, but must, in any case, be absent from the meeting when the matter is submitted to a vote.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -42.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.7.1.2 &nbsp; If the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>member of the statutory body</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> whose interests conflict with those of the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> or who has a private interest in the matter under discussion fails to declare an interest, any other </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>member of the statutory body</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> who is aware of that interest may declare it, and the minutes of the meeting must reflect that the member in question was not present during the discussion and vote on the matter. </FONT></P></DIV>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Type:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Phase:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>Institutional Policy</FONT></B></FONT></FONT></B><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>In effect</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Title:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Number and Version:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>TRANSACTIONS WITH RELATED PARTIES</FONT></B></FONT><B><FONT><FONT></FONT></FONT></B></P></TD>

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   <P style="MARGIN: 2pt 0in"><B><FONT><FONT><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PI0032 &#8211; V.1</FONT></B></FONT></FONT></B></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Issuing Area:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Approved by:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Effect of the first version as of:</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Expiry date of this version as of:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>PK</FONT></FONT><FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT style="FONT-SIZE: 7pt" face=Arial,sans-serif>DANTE RAGAZZI PAULI &#8211; DRPAULI</FONT></FONT><FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 2pt 0in" align=center><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>June 29, 2018</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Related Areas (Scope):</FONT></FONT></P></TD>

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   <P style="MARGIN: 1pt 0in 0.3pt"><FONT color=gray face=verdana,sans-serif><FONT lang=EN-US style="FONT-SIZE: 4pt" color=gray face=verdana,sans-serif>Processes:</FONT></FONT></P></TD></TR>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>SABESP</FONT></FONT></P></TD>

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   <P style="MARGIN: 2pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face=Arial,sans-serif>-</FONT></FONT></P></TD></TR>

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<P style="MARGIN: 0in 0in 0pt"><FONT><FONT lang=EN-US style="FONT-SIZE: 2pt" face=Arial,sans-serif></FONT></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 127.6pt; TEXT-INDENT: -42.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>3.7.1.3 &nbsp; Failure to declare a conflict of interest with the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> or a private interest in the matter under discussion voluntarily and in a timely manner, and not having the interest registered in minutes, are considered a violation of this Policy, and the </FONT><I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Company</FONT></I><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif> must take the appropriate measures.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.8</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Verification of compliance</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 1.85pt 0pt 49.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>The internal auditing department must include verification of compliance with this Policy in its scheduled engagements.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.9</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Disclosure</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 1.85pt 0pt 49.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>Transactions with related parties must be disclosed only by the accounting department and the investor relations department, as appropriate, subject to the corresponding rules.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.10</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Declaration of Companies</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 1.85pt 0pt 49.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>The individuals listed in item 3.1.1 (a) must declare companies controlled as per Appendix 3.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.11</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>Policy Review</FONT></H2>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 1.85pt 0pt 49.65pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; LINE-HEIGHT: 150%" face=Arial,sans-serif>The Audit Committee must assess, monitor and recommend improvements to this Policy when it carries out its annual review.</FONT></P>

<H2 style="PAGE-BREAK-AFTER: avoid; TEXT-ALIGN: justify; MARGIN: 6pt 1.85pt 6pt 49.6pt; TEXT-INDENT: -28.35pt"><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>3.12</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt; FONT-WEIGHT: normal" face="times new roman">&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt; FONT-WEIGHT: normal" face=Arial,sans-serif>The Compliance department is responsible for defining the corporate procedures and initiatives required to bring this Policy into full effect by the end of 2019.</FONT></H2>

<H1 style="PAGE-BREAK-AFTER: avoid; MARGIN: 12pt 0in; TEXT-INDENT: 0in"><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>4.</FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Supplementary items</FONT></B></H1>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0in"><FONT lang=EN-US style="FONT-SIZE: 3pt" color=gray face=verdana,sans-serif>Registration Details</FONT></P></TD></TR>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0.3pt 0in"><FONT lang=EN-US style="FONT-SIZE: 3pt" color=gray face=verdana,sans-serif>Files Attached (Supplementary to the Organizational Instrument)</FONT></P></TD></TR>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 2pt 0in"><FONT lang=EN-US style="FONT-SIZE: 5pt" color=black face=Arial,sans-serif>PI0032-v.1 &#8211; Appendix 1 &#8211; Definitions</FONT></P>

   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 2pt 0in"><FONT lang=EN-US style="FONT-SIZE: 5pt" color=black face=Arial,sans-serif>PI0032-v.1 &#8211; Appendix 2 &#8211; Declaration of Companies Controlled &#8211; Individual &#8211; item 3.1.1 (a)</FONT></P></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 3pt" align=left><FONT><FONT lang=EN-US style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Name of the Appendix:</FONT></FONT></P></TD>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 3pt" align=left><FONT><FONT lang=EN-US style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Appendix Number</FONT></FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 3pt" align=left><FONT><FONT lang=EN-US style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Attached to the Instrument:</FONT></FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT><SUP><FONT><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Verdana,sans-serif>PI0032v.1 &#8211; Transactions with Related Parties</FONT></B></FONT></SUP></FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Description</FONT></FONT></P></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Management</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Executive Officers and members of the Board of Directors of the Company.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Company or Sabesp</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT style="FONT-SIZE: 11pt" face=arial,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; Sabesp.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Affiliate</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>A company over which Sabesp has significant influence, as defined in paragraphs 1, 4 and 5 of Art. 243 of Federal Law 6,404/1976.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to the definition of a related party in CPC 05(R1), an affiliate includes its subsidiaries and a joint venture includes its subsidiaries. Therefore, for instance, the subsidiary of an affiliate and an investor who exercises significant influence over the affiliate are related parties.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Market conditions</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Pursuant to Article 30 paragraph 4 of the Program Highlights in Governance of Government Controlled &nbsp;Companies created by B3 (Brasil, Bolsa, Balc&#227;o S.A.), transactions with related parties that are to be classified in market conditions &nbsp;must meet the following requirements: </FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>I &#8211; competitiveness: prices and terms of the services must be in line with those practiced in the market;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>II -&nbsp;&nbsp; compliance: the government controlled company must comply with contractual terms and responsibilities;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>III - transparency: there must be adequate reporting of the terms agreed, and they must be reflected in the government controlled &nbsp;company's financial statements;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>IV &#8211; equity: there must be mechanisms preventing discrimination or privilege, and practices to ensure that privileged information and business opportunities are not used for personal benefit or to the benefit of third parties; and</FONT></P>

   <P style="BACKGROUND: white; MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>V &#8211; commutativity: proportional benefits for each contractor</FONT></P>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Conflict of Interest</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Situations of conflict of interest arise when a member of the management, shareholder or other governance agent is not independent to the matter under discussion and can influence or make decisions motivated by self-interest, or for reasons other than those of the company, even if they converge to the company&#8217;s interest. Source: item 5.2 of the Brazilian Governance Code &#8211; Publicly-held Companies.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Subsidiary</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>A company controlled directly or indirectly by Sabesp, as defined in paragraph 2 of Art. 243 of Federal Law 6,404/1976.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Control</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>The investor controls the investee when the former is subject to, or has rights to, variable returns arising from its involvement with the investee and has the ability to influence these returns through its power over the same investee.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>For more information, see CPC 36 (R3).</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Joint control</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>This is the contractually agreed sharing of control of a business, which exists only when decisions on important activities require the unanimous consent of the parties sharing control.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>For more information, see CPC 18 (R2) and CPC 19 (R2).</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>CPC 05 (R1)</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Technical Pronouncement CPC 05 (R1) &#8211; Related Parties Disclosures, issued by the Accounting Pronouncements Committee on September 3, 2010.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>CPC 18 (R2)</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Technical Pronouncement CPC 18 (R2) &#8211; Investments in Affiliates, Subsidiary or Joint Venture, approved by the Accounting Pronouncements Committee on December 7, 2012. </FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>CPC 19 (R2)</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Technical Pronouncement CPC 19 (R2) &#8211; Interests in Joint Ventures, approved by the Accounting Pronouncements Committee on November 9, 2012.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>CPC 36 (R3)</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Technical Pronouncement CPC 36 (R3) &#8211; Consolidated </FONT><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Financial </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Statements, approved by the Accounting Pronouncements Committee on December 7, 2012.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Business Group</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 36 (R3):</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;&#8220;Business group&#8221; is the parent company and all its subsidiaries.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;&#8220;Parent company&#8221; is an entity that controls one or more subsidiaries.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;&#8220;Subsidiary&#8221; is an entity controlled by another entity.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Significant influence</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 18 (R2), significant influence is the power to participate in decisions on financial and operational policies of a subsidiary, but without having individual or joint control of these policies.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Pursuant to paragraphs 4 and 5 of Article 243 of Federal Law 6,404/1976:</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=symbol>&#183;</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>&nbsp;&#8220;Significant influence&#8221; is considered to exist when the investing company has or exercises the power to participate in a subsidiary&#8217;s financial or operational policies, without having control.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=symbol>&#183;</FONT><FONT lang=EN-US style="FONT-SIZE: 7pt" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 11pt" face=Arial,sans-serif>Significant influence is assumed when the investing company holds 20% (twenty percent) or more of the voting capital of a subsidiary, without controlling it.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Members of the Statutory Bodies</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Members of the Board of Directors, Officers, Members of the Fiscal Council (members and alternates), members of the Audit Committee, the Eligibility and Advisory Committee and any other bodies with technical or consultative functions, existing or to be created by statutory ordinance of Sabesp.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Close family members of an individual</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 05 (R1), close family members of an individual are family members who can be expected to wield influence over, or be influenced by, the individual in business matters, and include:</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>a) the individual&#8217;s children, spouse or cohabitant;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>b) the children of the individual&#8217;s spouse or cohabitant; and</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>c) dependents of the individual and the individual&#8217;s spouse or cohabitant.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>The people described above must be declared as being close family members, adding also relatives to the third degree, including relatives by affinity, if they exercise influence or are influenced by the individual in their dealings with Sabesp.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Related party</FONT></I></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 05 (R1), a related party is a person or entity which is related to the company preparing its financial statements (referred to in the Technical Pronouncements as the &#8220;reporting entity&#8221;).</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(a)&nbsp; An individual, or a close relative of the individual, is related to the reporting entity if:</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(i)&nbsp;&nbsp; they have full or shared control over the reporting entity;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(ii) they have significant influence over the reporting entity; or</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; they are part of the key management personnel of the reporting entity or of its parent company.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(b)&nbsp; An entity is related to the reporting entity if any of the following is true:</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(i) &nbsp; the entity and the reporting entity are members of the same business group (this means that the parent company and each subsidiary are inter-related, and the entities under common control are related to each other);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(ii)&nbsp; the entity is an affiliate or joint venture of the other entity (or an affiliate or joint venture of a member of a business group of which the other entity is a member);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(iii) both the entities are joint ventures of a third entity;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(iv) one entity is a joint venture of a third entity and the other entity is an affiliate of the same third entity;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(v) the entity is a post-employment benefit plan of which the beneficiaries are the employees of both entities &#8211; the one which discloses information and the one related to it. If the reporting entity is itself a post-employment benefit plan, the employees who contribute to the plan will also be considered to be related to that reporting entity;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(vi) the entity is fully or jointly controlled by a person described in (a);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a person described in (a)(i) has significant influence over the entity, or is one of the key management personnel of the entity (or of the entity&#8217;s parent company);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 51.65pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the entity, or any member of the group to which it belongs, provides key management personnel services to the reporting entity or to the parent company of the latter.(included under Revision CPC 06).</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Key management personnel</FONT></I></B></P>

   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif></FONT></I></B>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 05 (R1), key management personnel are people with direct or indirect authority and responsibility for planning, management and control of the entity&#8217;s activities, including any of its management members (executive or otherwise).</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>For the purposes of this Policy, key management personnel of Sabesp are the members of the Company&#8217;s management.</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>Transaction with related parties</FONT></I></B></P>

   <P style="TEXT-ALIGN: left; MARGIN: 3pt 0in" align=left><B><I><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif></FONT></I></B>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 9.15pt; TEXT-INDENT: -0.1pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>According to CPC 05 (R1), a transaction with a related party is the transfer of funds, services or obligations between the reporting entity and a related party, irrespective of whether consideration is paid. For example: </FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(a)&nbsp; purchases and sales of goods (finished or unfinished);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(b) purchases and sales of properties and other assets;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(c) the supply or receipt of services;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(d) leases;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(e) transfers of research and development;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(f) transfers under licensing agreements;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(g) transfers of a financial nature (including loans and capital contributions in cash or the equivalent);</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(h) the provision of guarantees, accommodation of negotiable instrumentor sureties;</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(i) &nbsp; the assumption of commitments to do something if a particular event occurs, or does not occur, in the future, including contracts to be executed (recognized or otherwise); and</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 6pt 0in 0pt 30.3pt; TEXT-INDENT: -21.25pt"><FONT lang=EN-US style="FONT-SIZE: 11pt" face=arial,sans-serif>&nbsp;(j) &nbsp; the settlement of liabilities on behalf of the entity or by the entity on behalf of a related party.</FONT></P></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 3pt" align=left><FONT><FONT lang=EN-US style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Appendix Number</FONT></FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT><SUP><FONT><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Verdana,sans-serif>Model of Declaration of Companies Controlled &#8211; Individual &#8211; item 3.1.1 (a)</FONT></B></FONT></SUP></FONT></B></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt"><B><FONT><SUP><FONT><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Verdana,sans-serif>0002</FONT></B></FONT></SUP></FONT></B></P></TD></TR>

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   <TD style="HEIGHT: 2.6pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="87%" colSpan=2>

   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 3pt" align=left><FONT><FONT lang=EN-US style="FONT-SIZE: 5pt" face=Verdana,sans-serif>Related to Instrument:</FONT></FONT></P></TD></TR>

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   <TD style="BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" width="87%" colSpan=2>

   <P style="TEXT-ALIGN: left; MARGIN: 0in 0in 0pt" align=left><B><FONT><SUP><FONT><B><FONT lang=EN-US style="FONT-SIZE: 12pt" face=Verdana,sans-serif>PI0032v01 &#8211; Transactions with Related Parties</FONT></B></FONT></SUP></FONT></B></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="100%" colSpan=3>

   <P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Description</FONT></FONT></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in"><FONT><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>I, </FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>[name], [nationality], [marital status], [profession]</FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>, Tax ID CPF No. </FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>[...]</FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>, ID RG No. [...]</FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif> [issuing body]</FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>, </FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>[function or position]</FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>, as </FONT><I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>[xxxxxxx], </FONT></I><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>as required by the Institutional Policy for Transactions with Related Parties&#8211; PI0032-v01 &#8211; of Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; Sabesp, declare that:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>The following are my close family members(*):</FONT></P>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>CPF</FONT></B></P></TD>

   <TD style="BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="47%">

   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Name</FONT></B></P></TD>

   <TD style="BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" width="27%">

   <P style="TEXT-ALIGN: left; MARGIN: 0in 8.85pt 0pt 0in" align=left><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Degree of relationship</FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

   <TD style="BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="47%">

   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

   <TD style="BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="27%">

   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

   <TD style="BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="47%">

   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

   <TD style="BORDER-RIGHT: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" vAlign=top width="27%">

   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 8pt"><B><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 107%" face=Verdana,sans-serif></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>In addition:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>&nbsp;(&nbsp; ) Neither I nor my close family members (*) have full or joint control over any company.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>OR</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>&nbsp;( ) I and/or my close family members (*) have full or joint control over the following companies:</FONT></P>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 55.45pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>CNPJ</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 7.1pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Company Name</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 0pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Address</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 0pt 0pt 0in"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Name of the partners</FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0in 86.7pt 0pt 0in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 8pt"><B><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 107%" face=Verdana,sans-serif></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>If there is any change in the above information, I undertake to inform Sabesp, in writing, not later than ten (10) days after the date of the change.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>I hereby authorize Sabesp to include the individuals and legal entities mentioned herein in the Register of Related Parties held by the Company.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 3pt 35.45pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>&nbsp;[city], [date]</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>___________________________</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>&nbsp;[name]</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>&nbsp;(*) </FONT><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>Close family members of an individual </FONT></B><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>These are family members who can be expected to wield influence over, or be influenced by, the individual in business matters, and include: (a) the individual&#8217;s children, spouse or cohabitant; (b) the children of the individual&#8217;s spouse or cohabitant; and (c) dependents of the individual and the individual&#8217;s spouse or cohabitant. Source: CPC 05 (R1).</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0in 3pt 7.1pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face=Verdana,sans-serif>The people described above must be declared as being close family members, adding also relatives to the third degree, including relatives by affinity, if they exercise influence or are influenced by the individual in their dealings with Sabesp.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 3pt 0in"><FONT lang=EN-US style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT>&nbsp;</P>

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<P style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; TEXT-ALIGN: right; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 3pt 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in" align=right><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif>Page </FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif>1</FONT><FONT style="DISPLAY: none"><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif></FONT></FONT><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=Verdana,sans-serif> of 1</FONT></P></DIV></DIV></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>SIGNATURE&nbsp;</U></B></FONT><FONT size=1>&nbsp;</FONT></DIV></U></B></FONT>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city S&#227;o Paulo, Brazil. <BR></FONT></DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Date:&nbsp;July 24, 2018</FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

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   <DIV align=left><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV></TD></TR>

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   <TD vAlign=top align=left><FONT color=#000000 size=2 face="Times New Roman">By:</FONT></TD>

   <TD vAlign=bottom align=left>/s/&nbsp;&nbsp;<FONT style="FONT-FAMILY: times new roman" size=3>Rui de Britto &#193;lvares Affonso</FONT>&nbsp;&nbsp;&nbsp;&nbsp;

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   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>

   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Title: Chief Financial Officer and Investor Relations Officer </FONT></DIV></TD>

   <TD></TD></TR></TABLE></DIV>

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<P>&nbsp;</P>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

<P align=justify><FONT size=2 face="'Times New Roman, Times, Serif'">This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. </FONT></P>

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