Net Element International Completes 300 Million Rubles ($9.5 Million) Factoring Financing with Russia’s Largest Private Bank

  Net Element International Completes 300 Million Rubles ($9.5 Million)
  Factoring Financing with Russia’s Largest Private Bank

 Factoring Agreement Will Support Technology Company’s Growth and Development
of Its TOT Money Mobile Commerce and Payment Processing Platform in Russia and
                            Other Emerging Markets

Business Wire

MIAMI & MOSCOW -- October 24, 2012

Net Element International Inc. (NASDAQ: NETE), a technology driven group in
mobile commerce and payment processing, as well as in entertainment and
culture Internet destinations in Russia and other emerging markets, today
announced that its mobile payment processing company, TOT Money, has entered
into a 300 million rubles (approximately $9.5 million) factoring agreement
with Alfa-Bank, Russia’s largest private bank. The factoring agreement
effective as of September 28, combined with a credit facility of 300 million
rubles (approximately $9.5 million) that Alfa-Bank extended on August 17, will
help support the company’s continued growth and development in mobile
commerce.

TOT Money, a platform that facilitates transactions via SMS on any phone and
mobile network in Russia, is expected to become the lead driver of Net
Element’s mobile commerce payment processing division. Most consumers today
prefer mobile commerce because of the safety, accessibility and convenience it
provides.

As part of the factoring agreement, Alfa-Bank will serve as the collector and
processor of accounts receivables for TOT Money and will provide TOT Money
with financing to support its growth strategy. It will enable Net Element to
directly pay its transactional partners in the value chain, significantly
decreasing the time between the collection and distribution of profits
garnered from sales.

“There is significant demand for mobile payment processing in Russia’s mobile
commerce marketplace, and we believe that TOT Money is ideally positioned to
capitalize on these unique market opportunities,” said Ilina Polina,
Alfa-Bank’s business development director.

Dmitry Kozko, Net Element’s president, said, “This factoring agreement will
enable the team at Net Element International to take TOT Money’s business to
the next level and become one of Russia’s leading mobile payment processing
companies. We are positioning TOT Money to process up to 600 million rubles
per month in mobile payments and continue to attract top customers as we build
upon our mobile commerce and payment-processing platform for Russia and other
emerging markets.

“In addition to our relationship with the influential Alfa-Bank, our
agreements with the ‘Big Three’ mobile carriers in Russia and our broad
network of partners, content providers and merchants will greatly enhance our
company’s growth potential,” Kozko added.

About Net Element International Inc. (NASDAQ: NETE)

Net Element International Inc.(NASDAQ: NETE) is a technology driven group in
mobile commerce and payment processing, as well as in entertainment and
culture Internet destinations in Russia and other emerging markets. Its
international technology development centers, extensive global network and
high-level business relationships in Russia and the Commonwealth of
Independent States strategically position the company for growth in these
markets and beyond. Net Element International 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 International’s portfolio
includes:
www.TOTmoney.ru;www.Motorsport.com;www.Openfilm.com;www.Music1.ru;www.ARLive.comand
www.Yapik.com. For more information, visitwww.NetElement.com.

About Alfa-Bank

Founded in1990, Alfa-Bank isRussia’s largest private bank interms oftotal
assets, total equity, customer accounts and loan portfolio. Thefull-service
bank operates inmost sectors ofthe financial market, including retail and
corporate lending, investment banking, trade finance and asset management.
According toits audited IFRS financial statements for the full year 2011, the
Alfa Banking Group, which comprises OJSC Alfa-Bank aswell asits subsidiary
banks and financial companies, had total assets of$31.4billion, gross loans
of$23.2billion, and total equity of$3.4billion. Net profit after tax for
2011 amounted to$641million. The Alfa Banking Group’s corporate and retail
client base has grown considerably during the past several years. As of
January2012, Alfa-Bank Group serves approximately 55,800 corporate and 6.3
million retail customers, while the branch network consists of465 offices
across Russia and abroad, including asubsidiary bank inthe Netherlands and
financial subsidiaries inthe United States, the United Kingdom and Cyprus.
For more information, visit www.alfabank.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
reflect Net Element International's (NEI) and its management’s current
beliefs, expectations or intentions regarding future events. Any statements
contained in this press release that are not statements of historical fact may
be deemed forward-looking statements. Words such as “will,” “become,”
“enable,” “may,” “could,” “should,” “expect,” “expected,” “proposed,”
“contemplated,” “plan,” “project,” “intend,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These forward-looking
statements include, without limitation, all statements and information
regarding the intent, belief or current expectation of NEI and its management.
All forward-looking statements involve significant risks and uncertainties
that could cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are generally outside
the control of NEI and are difficult to predict. Examples of such risks and
uncertainties include, but are not limited to: (i) TOT Money’s borrowing
capacity under its factoring facility and/or credit facility with Alfa-Bank,
which is subject to change from time-to-time pursuant to the terms of such
facilities; (ii) adverse changes in the demand for mobile payment processing
in Russia; (iii) adverse changes in NEI’s and/or TOT Money’s relationships
with mobile carriers, lenders and other business partners; and (iv) adverse
changes in general business and economic conditions, particularly in Russian
and other emerging markets where NEI and TOT Money principally operate.
Additional factors that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements can be found in
the most recent annual report on Form 10-K and the subsequently filed
quarterly reports on Form 10-Q and current reports on Form 8-K filed by each
of Net Element International, Inc. and Net Element, Inc. with the U.S.
Securities and Exchange Commission (the “SEC”), the definitive joint proxy
statement/prospectus filed by Net Element International, Inc. with the
Securities and Exchange Commission and future reports and other filings by Net
Element International, Inc. with the Securities and Exchange Commission. NEI
anticipates that subsequent events and developments may cause its views and
expectations to change. NEI assumes no obligation, and it specifically
disclaim any intention or obligation, to update any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as expressly required by law.

Contact:

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