The Paulmann family will sell 5% of Cencosud on the stock exchange while maintaining control of the company

Santiago, July 11, 2016.- Cencosud (NYSE: CNCO BCS: Cencosud) announced today that its Controller has initiated a process to sell 5% of Cencosud's ownership. Following the transaction, the Paulmann family will continue to be the controlling shareholder of Cencosud.

The Company announced that it has registered a secondary public offering of shares, consisting of 142,126,044 of its ordinary shares, representing 5% of Cencosud's shares. The shares will be sold by Inversiones Tano Limitada in the United States and other locations outside of Chile in the form of ADS (American Depositary Shares), and in Chile in the form of ordinary shares, subject to market conditions. J.P. Morgan Securities LLC and Credicorp Capital S.A. Corredores de Bolsa are acting as global coordinators of the transaction, with J.P. Morgan Securities LLC as the sole placement agent in the United States and other locations outside of Chile, and Credicorp Capital S.A. Corredores de Bolsa, together with J.P. Morgan Corredores de Bolsa SpA, acting as placement agents in Chile.

The offering will be conducted as a single block through a Book Building Auction at the Santiago Stock Exchange, in accordance with Chilean law and the regulations of the Stock Exchange. It is expected that the price and allocations resulting from the auction will be announced prior to the start of trading of Cencosud's shares and ADS on or around July 15, 2016.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities may not be offered or sold in the United States without registration or an exemption from registration. Cencosud has filed a registration statement with the U.S. Securities and Exchange Commission, which became effective upon filing with the U.S. Securities and Exchange Commission. Any public offering of such securities in the United States will be made pursuant to the registration statement and by means of a prospectus, which can be obtained upon request from Cencosud or Inversiones Tano Limitada, and which will contain or incorporate detailed information about Cencosud and its management.