Yandex and Sberbank Announce Joint Venture for Electronic-Money Solutions

Yandex and Sberbank Announce Joint Venture for Electronic-Money Solutions

MOSCOW and THE HAGUE, Netherlands, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Yandex
and Sberbank of Russia today announced a strategic partnership in the area of
e-money, through the establishment of a joint venture on the Yandex.Money
platform. Yandex and Sberbank plan to be at the forefront of developing
innovative online retail payment solutions by combining Sberbank's banking
expertise and Yandex's internet technologies.

Sberbank and Yandex will form a joint venture through the acquisition by
Sberbank of a 75% interest in the charter capital of Yandex.Money for $60M,
with Yandex retaining a blocking interest in the JV (25% plus one ruble).
Evgenia Zavalishina, Yandex.Money's current CEO, will head the JV. The JV's
board of directors will include two representatives of Yandex – Evgenia
Zavalishina and the company's CEO Arkady Volozh, joined by three members
representing Sberbank of Russia - Alexandr Torbakhov, Denis Bugrov and Viktor
Orlovskiy.

Developer teams of Yandex.Money and Sberbank have already started together on
planning new projects. New products will leverage existing Yandex.Money
technologies and will be released under the Yandex.Money brand. Yandex.Money
users will remain customers of the existing legal entity Yandex.Money, a
non-banking credit organization operating under a license issued by the
Central Bank of Russia.

"Expanding our presence in the digital world and developing online solutions
is one of our operational priorities. In Yandex, we have found the optimal
partner to significantly strengthen our position in the fast growing market of
electronic commerce and internet payments," said Herman Gref, Chairman of the
Management Board and CEO of Sberbank. "Yandex.Money products have become an
industry standard for electronic payments in the Russian. We are investing not
just in internet technology, but rather in an independent profitable business
which is keen to considerably expand its customer base."

"The universe of online payments is changing at an extremely rapid pace and
the potential for electronic payments extends far beyond the internet. We have
long been looking for a partnership in finance to help drive our business to a
new level. But this opportunity has been considered only in the context of a
joint development of our service. We are very happy that Sberbank has become
our partner," said Arkady Volozh, CEO of Yandex.

"A leap in quality is only possible with a very strong partner. And Sberbank
of Russia is the largest bank in Eastern Europe ," said Evgenia Zavalishina,
chair of Yandex.Money's board of directors. "The bank's team has an extensive
experience and expertise in finance, along with tens of millions of clients,
many of whom do not yet have much online experience. In turn, Yandex, has tens
of millions of internet users and an extensive experience in developing highly
popular consumer services. By combining efforts, we are aiming to create
unique products to meet the growing needs of all consumers."

The deal is expected to close in the first quarter of 2013. At this time all
the key terms and conditions have been agreed and the timeline for closing the
deal is subject to standard conditions precedent to similar deals being
satisfied, including the receipt of required regulatory approvals.

Advisors to Sberbank on the deal: Sberbank CIB (financial advisor), White&Case
(legal counsel), KPMG (financial, tax, commercial and IT due diligence).
Advisors to Yandex: Morgan Stanley (financial advisor), WilmerHale and Laseta
Partners (legal counsel).

Yandex (Nasdaq:YNDX) is one ofEurope's largest internet companies providing
theworld with search andonline services onemarket ata time. Yandex's
mission isto help users solve their everyday problems bybuilding
people-centric products andservices. Based oninnovative technologies,
thecompany offers themost relevant, locally tailored experience onall
digital platforms anddevices. Yandex isthe leading internet search service
inRussia with 60.2% of the country's search market (according to
LiveInternet, November 2012) and a monthly audience of 50.4 million (according
to comScore, October 2012). Yandex also operates in Turkey, Ukraine, Belarus
andKazakhstan. More information onYandex canbefound
athttp://company.yandex.com.

The Yandex Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=10933

Yandex.Moneyisthe largest electronic payment system on the Russian internet,
offering easy, safe andreliable methods forpaying forpurchases online.
Every day, thesystem adds more than 9,000 new accounts to its user base of
more than 12 million. In the first three quarters of 2012, Yandex.Money's
revenue exceeded RUR 370 million (see Yandex Financial Results
http://ir.yandex.com/releasedetail.cfm?ReleaseID=717047). According to TNS,
15% of the Russian population make payments with Yanex.Money at least once in
six months.

Sberbank of Russia is the largest bank of Russia that holds about one third of
the Russian banking assets. The Central Bank of the Russian Federation is the
founder and major shareholder of Sberbank of Russia OJSC owning 50% plus one
voting share in its Charter Capital. Other shares are held by more than
245,000 individuals and legal entities. The bank has the most extensive branch
network in Russia: about 19,000 branch offices and internal structural
divisions. The foreign network of the Bank is comprised of subsidiaries,
branch offices and representative offices in 20 countries, including CIS
countries, Central and Eastern Europe, and Turkey. In September 2012, Sberbank
completed the deal on acquiring DenizBank, which is ranked as 6th among
private banks in Turkey and 9th among Turkish domestic banks by total
consolidated assets.

The number of the General License of the Bank of Russia for banking
transactions is 1481.
The bank's official website - www.sberbank.ru.

CONTACT: Investor Relations
         Dmitry Barsukov, Katya Zhukova
         Phone: +7 495 739-70-00
         E-mail: askIR@yandex-team.ru
        
         US Investor Contact
         The Blueshirt Group, for Yandex
         Alex Wellins
         Phone: +1 415 217-58-61
         E-mail: alex@blueshirtgroup.com
        
         Media Relations
         Ochir Mandzhikov, Dina Litvinova
         Phone: +7 495 739-70-00
         E-mail: pr@yandex-team.ru

Yandex Logo
 
Press spacebar to pause and continue. Press esc to stop.