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Mon, September 24, 2012

Net Element Partners with MegaFon, Russia’s Second-Largest Mobile Operator, to Provide Payment Processing Services to


Published on 2012-09-24 08:45:37 - Market Wire
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MIAMI & MOSCOW--([ ])--[ Net Element ] ([ OTCQB: NETE ]), a global technology and publishing company that operates in mobile commerce and payment processing, and also publishes popular entertainment portals and destinations, and [ MegaFon OJSC ], Russiaas second-largest mobile phone operator, today announced their partnership to provide payment processing services to MegaFonas 64 million subscribers. The agreement calls for MegaFon to enable Net Elementas mobile payment platform, to facilitate the mobile payments for MegaFon subscribers. In the first two weeks after the September 1 start date, Net Element already processed about 35 million rubles (approximately $1.1 million) for MegaFon customers.

"We have enjoyed great success working with Net Element, and we are very pleased to continue to expand our business relationships with Net Element and announce our partnership for payment processing, which is the largest mobile-related contract in MegaFonas history"

Net Element is expected to become a leading value-added services provider for the $1.5 billion Russian SMS payments market and the $475 million Russian mobile commerce market. The marketas growth is being driven by Russiaas booming mobile marketplace with more than 227 million active SIM cards.

Net Element and MegaFon announced their payment processing partnership several months after they teamed up to launch Net Element as Motorsport.com and Komissionka mobile phone apps in the Russian marketplace. The apps were pre-loaded on smartphones under MegaFonas brand, marketed to MegaFonas 64 million subscribers.

aWe have enjoyed great success working with Net Element, and we are very pleased to continue to expand our business relationships with Net Element and announce our partnership for payment processing, which is the largest mobile-related contract in MegaFonas history,a said Oleg Butenko, MegaLabs CEO.

Added Dmitry Kozko, Net Elementas executive vice president: aNet Element is proud of our success in the Russian marketplace where large-scale distribution reach is critical, and we are excited to expand our partnership with MegaLabs, which more strategically positions our company in one of the worldas most rapidly growing economies. Our partnership with MegaFon and key relationships with the aBig Threea mobile operators will help Net Element become the leader in Russiaas mobile commerce boom.a

About Megafon OJSC

[ MegaFon OJSC ] is a universal operator working in all the segments of the telecommunications market. The company is actively fighting mobile fraud and works to raise mobile literacy in the population. More than 62 million people throughout Russia have chosen the high quality of services and communications provided by MegaFon. Appreciating the trust of its customers, the company has become the only mobile operator to adopt more customer-oriented policies. MegaFon is the first and only mobile operator to expand its network throughout the Russian Federation, as well as the first in the country to launch 3G for commercial operations. An active supporter of sports, MegaFon is the General partner of the XXII Olympic Winter Games 2014 and XI Paralympic Winter Games 2014 in Sochi, and the General partner and official mobile operator of the XXVII World Summer Universiade 2013 in Kazan.

MegaLabs is a wholly owned subsidiary of MegaFon, and its principal objective is to research, develop and bring to market innovative value-added services for MegaFon clients. MegaLabs is a centre for innovative developments and quick-to-market launch of value-added services in the areas of content and media, mobile finance, mobile advertising, M2M services and cloudservices.

About Net Element (OTCQB:NETE)

[ Net Element ]([ OTCQB:NETE ]) is a global technology and publishing company that operates in mobile commerce and payment processing, as well as publishes popular Internet portals and destinations. Its international development centers and influential relationships in Russia and Commonwealth Independent States strategically position the company for growth in Russia and other emerging markets. Net Element owns and operates a mobile-commerce company, TOT Money, as well as several Internet properties that create social and business communities in the entertainment, music, motorsports and film industries. Net Elementas portfolio includes:[ www.TOTmoney.ru ]; [ www.Motorsport.com ];[ www.Openfilm.com ]; and [ www.Music1.ru ]; [ www.ARLive.com ]and[ www.Yapik.com ]. For more information, visit[ www.NetElement.com ].

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