LOCALIZA RENT CAR S.A. PUBLICLY HELD COMPANY Corporate Taxpayer ID CNPJ/MF 16.670.085/0001-55 Corporate Registry ID (NIRE) 3130001144-5

NOTICE TO THE MARKET

CGU AGREEMENT

Localiza Rent a Car S.A. – “Localiza” (: RENT3 and OTCQX: LZRFY), hereby informs its shareholders and the market that prior the acquisition by Localiza of Systems do Brasil Locação de Veículos Ltda. (“Car Rental”), occurred on August 31, 2017, the former indirect parent company of Car Rental, a company based in France, identified certain activities in occurred in 2010, which raised concerns under the US Foreign Corrupt Practices Act (“FCPA”) and Brazilian anti- corruption legislation. Such facts involved practices of third parties hired to provide services to Car Rental in 2010, therefore, before the acquisition of the company by Localiza, which occurred only in 2017, as disclosed in its Reference Form.

Before being acquired by Localiza, Car Rental and its former parent company reported such conduct to the applicable Brazilian and US authorities, without having any measure imposed by the US authorities. In Brazil, a confidential negotiation was initiated with the Brazilian Federal Comptroller General (“CGU”) and the Brazilian Federal Attorney General (“AGU”). Localiza, as the new parent of Car Rental and because it had interest in concluding the negotiations as soon as possible, joined these negotiations as an intervening party.

On this date, Car Rental, as a collaborator, as well as Hertz France S.A.S., Localiza, and its subsidiary Localiza Fleet, the last three as intervening parties, executed the Leniency Agreement (“Leniency Agreement”), with CGU and AGU.

Under the aforementioned Leniency Agreement, as a consequence of the event, being prior to the acquisition of Car Rental, Localiza assumed certain typical obligations to improve its Integrity Program, which became applicable also to Car Rental, since its acquisition in 2017.

Localiza informs that, in the context of the acquisition of Car Rental, the company's former parent company assumed the responsibility to indemnify Localiza for breaches of the compliance rules that occurred prior to the acquisition by Localiza, so the amount of approximately R$ 750,000.00 (seven hundred and fifty thousand reais) to be paid to the Brazilian authorities will not have any impact to Localiza.

Any new material information related to the aforementioned facts will be timely communicated to the market.

Belo Horizonte, August 25, 2020.

Mauricio Teixeira

CFO and IRO