While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1. Social and Environmental Assessment and Management Systems PS2. Labor and Working Conditions PS3. Pollution Prevention and Abatement PS4. Community Health, Safety and Security issues PS5. Land Acquisition and Involuntary Resettlement PS6: Biodiversity Conservation and Sustainable Natural Resource Management, PS7: Indigenous Peoples, and PS8: Cultural Heritage do not apply to this project, because the project does not include impacts to biodiversity or natural resources; does not operate or include development in indigenous lands; and is not expected to impact cultural heritage, respectively

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social issues may have impacts which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environment, health and safety and social aspect of the project which were analyzed during IFC’s review were: Environmental and Social Management System (ESMS); life and fire safety of building infrastructure; labor and working conditions of employees and subcontractors; energy conservation of building infrastructure; hazardous and non-hazardous solid waste management; and possible land acquisition for expansion activities.

PS1: Social and Environmental Assessment and Management Systems - Management Program – Over the last few years, the Company has expanded rapidly through partnerships with existing educational institutions and currently operates 71 campuses. The company plans to continue this type of expansion activities through building leasing arrangements and sometimes through construction of new facilities. As outlined in the environmental and social action plan (ESAP) for IFC’s first investment, the company is in the process of formalizing the development and implementation of an environmental and social management program (ESMP) to address environmental and social issues applicable to the Company’s operations. When completed, the ESMP will cover such aspects as: screening of environmental and social issues during the leasing or new construction process; emergency preparedness and response; energy and resources management; waste management; contractor’s occupational health and safety; community engagement; and other applicable aspects. As part of the development of the ESMP, the Company will identify and adopt IFC’s Performance Standards as part of its legal obligations together with local law. The company has contracted a qualified external consultancy to assist in the development of the ESMP, The development of the ESMP includes a five-stage process starting with a stakeholder mapping exercise to identify Estacio’s internal and external stakeholders; identification of key environmental and social aspects of material significance to the company (already completed as of the date of IFC’s most recent appraisal); evaluation of existing environmental, health, safety, and social practices currently in place to identify gaps against material aspects; development of an environmental and social policy; and establishment of a monitoring program. It is expected that once completed, the environmental policy will be approved by the managing board and the president of the company prior to its dissemination. - Organization and Training – Responsibility for the management of environmental, health and safety (EHS) aspects is performed in a decentralized manner. Each Campus Director is assigned the responsibility for compliance with local law and other corporate policy objectives. Each campus has its own facilities maintenance team which reports to the manager’s administrative division. The Company also has shared services departments to manage business planning activities in general and more specifically such aspects as engineering services and human resources. Some environmental management functions such as energy consumption are monitored by the engineering division. There is also a person responsible for reviewing the campuses’ safety performance. - Monitoring and Reporting – As part of the on-going development of the ESMP, the Company is in the process of defining a series of applicable key performance indicators that it will use to monitor the implementation and results of the relevant environmental and social management activities included under the management program. The company indicates that as part of the on-going development of the ESMP it plans to divulge the results of environmental and social monitoring activities internally and externally through reports that are consistent with the Global Reporting Initiative (GRI) or its Brazilian equivalent the Bovespa ISE. External reports will include a summary of environmental aspects such as energy and water consumption and conservation; waste generation, recovery and recycling; occupational safety (accident rates); greenhouse gas emissions; community engagement activities and other applicable aspects. PS2: Labor and Working Conditions In 2011, the Company reports a total of 10.458 employees, 565 of them in its Headquarters in Rio de Janeiro and the rest in the remaining 71 facilities located across Brazil and Paraguay. Of the 9893 employees outside headquarters, 69% of are involved in teaching activities with the remainder dedicated to administrative functions (i.e. accounting, human resources management, etc). Thirty seven percent of the administrative and 50% of the teaching workforce are women. - Human Resource Policy - The Human Resources Department has a standard set of procedures that it must follow during the human resource management cycle including with recruitment and selection; admissions process and documentation; planning and approval of holidays and time off; attendance and working hours; payment processing; and cessation of employment. The Company’s labor practices and employee rules are defined in the Company’s Human Resource Policy and the Ethics Code, both of which are communicated to all new employees during the induction process and which are available in the Company intranet. The Company’s Human Resource Policy covers the following aspects: recruitment and selection; holidays; cessation of employment; performance evaluations; dress code; access to grievance; and training opportunities. The Company Ethics Code covers aspects such as: conflicts of interest; ethical conduct at work; relations with external parties such as government agencies, service providers, the media, and unions; teacher-student relations; and the organization of the Company’s Ethics Committee. The Company has distributed copies to all employees and requested a signed acknowledgement of receipt from each employee. The Company provides employees with intranet access to the corporate human resource policies which include such aspects as: entitlement to and payment of wages; permissible wage deductions; overtime payments; hours of work and any legal maximums; entitlement to leave for holidays, vacation, illness, injury, and maternity and other reasons; entitlement to benefits; disciplinary and termination procedures and rights; conditions of work; and promotion requirements and procedures. - Working Relationship - Company hiring practices are performed following Brazilian labor law (Consolidação das Leis do Trabalho – CLT). Employees involved in teaching activities are contracted based on the number of lectures provided and are compensated based on an hourly rate while administrative staff have regular employment contracts receiving monthly salaries. According to Company’s internal policy, the minimum age for recruitment of employees is 18 years. The Company provides internship opportunities to students between the ages of 16 and 22 years. The Company outsources facility construction, mechanical maintenance, cleaning, and security services. The Company has introduced pertinent sections in contracts in order to ensure that contractors are in compliance with: payment of workers’ legal benefits; timely payment of wages; occupational safety regulations, including provision of potable water, personal protective equipment, and ILO Conventions 138 on Minimum Age. The Company contractually ensures and monitors the compliance of service providers to minimum age employment requirements. The Company has developed and provided service contracting firms with a manual that includes health and safety requirements of the Company and has also included reference to such requirements in the service contract documents. - Workers Organization - IFC found no evidence that the Company restricts employees’ right to freedom of association. The Company reports that 100% of administrative employees and 100% of teaching employees belong to a union. Currently the Company has collective agreements with 48 different unions throughout Brazil. There is no history of recent strikes among the employees and the last strike reportedly occurred in 1988. - Occupational Health and Safety - As part of its shared services department, the Company has a corporate Occupational Health and Safety group based in its headquarters staffed by six safety specialists. The OHS department is responsible, together with the Human Resources Department, for communicating and monitoring compliance of all 71 units with Brazilian occupational health and safety requirements. These requirements include the need for constitution of internal committees for accident prevention (CIPA committees which are also responsible for investigating and analyzing occupational accidents, incidents, and health issues); process of identification and prevention of workplace environmental risks (PPRA); occupational medical monitoring program (PCMSO); and labor history certificate (PPP). As part of the development of the ESMP, the Company will ensure that laboratory safety standards are developed and applied in order to protect the safety of professors and students from potential exposures to chemical or other hazards. - Grievance Mechanism – The Company employees are currently able to lodge complaints internally through an ombudsman (“Ouvidouria”) and externally through the public Labor Rights system (Justiça do Trabalho). The Ouvidouria is administered through a written procedure or internal company rule which provides a formal mechanism to receive and process internal grievances. The Ouvidouria is substantially consistent with IFC’s requirements for a grievance mechanism. - Retrenchment - As part of restructuring activities, the Company management reduced the workforce from approximately 12,893 in 2008 to about 10,843 at present, representing a reduction of approximately 2,050 employees. Future workforce reductions are expected as part of the consolidation of shared services. The workforce reduction process has been conducted in negotiation with representatives of employee and teachers unions in an effort to preserve employees’ rights according to Brazilian labor law. PS3: Pollution Prevention and Abatement As part of development and implementation of a corporate environmental and social management program the Company is currently preparing plans and procedures for the management of energy, waste, water and other key environmental aspects of its operations. The plans will include targets for reduction to be monitored annually. - Energy and water efficiency: Company facilities consume a total of approximately 32 million kWh of electricity annually. As part of the on-going development of an environmental and social management program, the Company is also implementing an energy conservation plan, first by monitoring energy consumption in all of its facilities and then through planning and implementation of energy conservation measures included through its standard facilities engineering design applied to new and existing facilities. Some facilities, such as the operations located in the State of Rio de Janeiro, are part of energy monitoring and efficiency programs promoted by the local electricity distribution companies. As part of the on-going development of the ESMP, the Company is promoting energy efficiency audits in other campuses beyond the state of Rio de Janeiro and extending to the rest of its portfolio. The Company is also in the process of developing and implementing a corporate wide water conservation program applicable to all facilities in its portfolio. - Liquid and solid waste: Liquid effluents from campuses are normally discharged into the municipal sewerage systems. However, some facilities operate their own sewage treatments systems. In those cases, the Company will evaluate as part of the on-going development of the ESMP the operating conditions of these wastewater treatment plans and develop a management program to ensure that effluents comply with local law and IFC requirements. Campuses currently produce unknown quantities of solid waste mainly consisting of inorganic office waste, organic waste from on-site food services, and maintenance waste. These waste materials are managed in accordance with regulatory municipal agency permits. Campus facilities also produce unknown quantities of educational laboratory and health services waste, both of which may be considered hazardous depending on their specific origin or characteristics as defined by Brazilian law. As part of the on-going development of the ESMP, the Company will develop formal procedures to ensure a minimum standard of care in the storage and final disposed of all waste materials according to Brazilian law and IFC standards. The Company also will also monitor waste quantities and disposal methods. PS4: Community Health, Safety and Security The Company’s 71 facilities are used primarily for educational as well as administrative activities. The total occupancy per site ranges 200,000 people per day. Approximately 95% of the buildings are multi-story ranging from 02 to 03 floors. Estacio applies local and national building safety standards to its design and construction of new facilities. It is also in the process of reviewing the condition of existing building structures acquired through its growth strategy to evaluate the need for safety upgrades. As defined in the environmental and social action plan (ESAP) of IFC’s first investment, during new acquisition or leasing arrangements, the Company will review the status of each building’s fire safety systems, including such aspects related to fire prevention, means of egress, detection and alarm systems, and others to ensure compliance with local and internationally recognized standards according to IFC requirements. In leased buildings where major renovations are neither planned nor feasible, the company will review building conditions against minimum life and fire safety criteria as part of its due diligence process and include corrective actions in its legal agreements with building owners to ensure that buildings meet at least local life and fire safety codes. The Company is currently in the process of developing and implementing emergency preparedness and response plans for all of its facilities. Emergency plans will respond to the needs of life and fire safety requirements and include such aspects as alarm systems; training on emergency evacuation, use of fire equipment, and other applicable aspects identified by experienced emergency planning specialists in the planning process. The Company is currently developing and implementing a training plan to ensure that all students and employees are knowledgeable of existing emergency procedures and emergency contingency plans, including evacuation routes. The Company will perform fire drills in all operating campuses at the frequency required by Brazilian law. PS5: Land Acquisition and Involuntary Resettlement The Company’s business model consists mainly of leasing or profit sharing arrangements with landowners and therefore does not commonly include the acquisition of existing building or greenfield development. In the event that the Company’s business expansion plans may include the need for additional land acquisition, it will develop a formal land acquisition procedure to ensure these activities are conducted in compliance with IFC requirements.

The Company continues to actively engage in a series of community activities which include development of a call-in center to receive inquiries from prospective students and the community at large. Information about the Company is also available through its external website (http://www.estacio.br). Community programs include the offer of scholarships and participation in PROUNI, federal program aimed at offering partial and full scholarships for low income students and the provision of services to the community in several areas such as nursing, physiotherapy, medicine and law.

Rogerio Melzi, CFO or Daniel Venturini, Financial Manager Estácio Participações S.A. Av. Embaixador Abelardo Bueno, 199 / 6° andarCEP 22775-040Barra da Tijuca - Rio de Janeiro/RJ – Brasil Tel: (21) 3311-9700Fax: (21) 3311-9722www.estacioparticipacoes.com ri@estacioparticipacoes.com