Net Element Partners with Number One Mobile Telecom Provider in Russia and CIS

  Net Element Partners with Number One Mobile Telecom Provider in Russia and
  CIS

 Partnership Will Focus on Driving Revenues from the Fast-Growing Russian SMS
                     Payments and Mobile Commerce Market

Business Wire

MIAMI & MOSCOW -- September 12, 2012

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 Mobile TeleSystems OJSC (NYSE:
MBT) (MTS), the leading telecommunications provider in Russia and the
Commonwealth of Independent States, today announced their partnership to
provide payment processing services to MTS’ 100 million-plus subscribers. The
agreement, effective as of August 1, 2012, calls for MTS to allow Net
Element’s mobile payment platform, TOT Money, to facilitate the payment
processing for MTS subscribers. In first month of processing for MTS, TOT
Money processed about 80 million rubles (approximately $2.5 million) for MTS
customers.

TOT Money, which will facilitate transactions via SMS on any phone and mobile
network in Russia, 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 market’s growth is being driven by
Russia’s booming mobile marketplace with more than 227 million active SIM
cards.

“As MTS continues to expand and upgrade our infrastructure to meet a growing
demand in our markets for data services, we are excited to partner with
technology leaders like Net Element and TOT Money and roll out their
world-class SMS payment processing services,” said Andrey A. Dubovskov,
president and CEO of MTS. “This partnership will be an important part of our
growth strategy that will enable us to seize the significant revenue
opportunities in the mobile commerce market.”

Added Dmitry Kozko, Net Element’s executive vice president: “Our partnership
with MTS, a leading telecommunications provider in Russia and CIS, will
strategically position TOT Money to become the leader in Russia’s mobile
commerce boom.”

About Mobile TeleSystems OJSC (NYSE: MBT)

Mobile TeleSystems OJSC (NYSE: MBT) (MTS) is the leading telecommunications
group in Russia and the Commonwealth of Independent States, offering mobile
and fixed voice, broadband, pay TV as well as content and entertainment
services in one of the world's fastest-growing regions. Including its
subsidiaries, the Group services more than 100 million mobile subscribers. The
Group has been awarded GSM licenses in Russia, Ukraine, Turkmenistan, Armenia
and Belarus, a region that boasts a total population of more than 200 million.
Since June 2000, MTS' Level 3 ADRs have been listed on the New York Stock
Exchange (ticker symbol MBT). Additional information about the MTS Group may
be found at www.mtsgsm.com

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
Element’s portfolio includes:www.TOTmoney.ru;
www.Motorsport.com;www.Openfilm.com; and www.Music1.ru;
www.ARLive.comandwww.Yapik.com. For more information,
visitwww.NetElement.com.

Contact:

Roar Media
Tyler Sminkey, 305-403-2080, Ext. 114
tyler@roarmedia.com
www.RoarMedia.com
 
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