Net Element Signs Distribution Agreement with Deezer to Expand Music1’s Digital Music Content Monetization Strategy beyond

  Net Element Signs Distribution Agreement with Deezer to Expand Music1’s
  Digital Music Content Monetization Strategy beyond Russia

   Music1.ru, Powered by Net Element’s Proprietary Digital Music Discovery
Engine, Signs Agreement with Deezer to Distribute Its Content to 180 Countries

Business Wire

MOSCOW & MIAMI -- April 2, 2013

Net Element International (NASDAQ: NETE), a technology-driven group
specializing in electronic commerce and mobile payment processing through its
collaboration with Igor Krutoy, one of the most distinguished and widely
popular Russian composers, entertainment icon, record label owner and hit TV
show producer, today announced their signing of direct distribution agreement
with Deezer, which will expand the adoption of Music1’s digital music rights
management strategy and enable digital music content-management companies and
content producers to monetize their assets through Net Element’s proprietary
digital music discovery engine.

Created through collaboration between Net Element and Mr. Krutoy’s record
company, “ARS Records”, the online and mobile monetization platform will
expand Music1.ru’s current library of more than 2,000 hours of music videos
and concert footage including both popular Russian and international titles.
The Music1.ru endeavor is expected to become the leading Russian-based
destination and monetization platform for Russian-originated digital music
content management companies and content producers that are actively seeking
distribution beyond Russia.

“I’m excited that we are showing such rapid progress in our Music1.ru venture
with Net Element, as this new digital music platform along with its
distribution network will have a tremendous positive impact on the industry,”
said Mr. Krutoy. “Deezer is one of obvious leaders in reaching global
audiences, and I’m proud that we have signed a direct distribution deal with
this company. Fans will now have access to the music they love and our digital
content monetization platform will provide an opportunity for Russian music
performers to derive income beyond the confines of concert halls. Clearly, we
are on a trajectory to shape and lead the evolution of the music and
entertainment industries in Russia.”

The Music1.ru platform is not just a website – it is an online and mobile
destination for users to discover music in new ways through its proprietary
recommendation engine that matches visual cues with music playlists and users’
preferences. Music1 will first concentrate its efforts on facilitating proper
digital distribution of content via Deezer, but it also has a broader outlook.
Music1 plans to have digital music content available everywhere users demand
it – as well as regions with a growing passion for Russian music content.
Deezer has a mature mobile distribution infrastructure in place through
Deutsche Telekom (T-Mobile), Belgacom, Orange, Tigo and Telenor. Music1’s
aggressive strategy is to become the single platform that allows Russian music
content to be monetized via digital distribution, while reaching global
audiences on popular user platforms where they are already comfortable
consuming content.

Said Dmitry Kozko, Net Element’s president: “With Music1’s music discovery
engine, playlist-building technologies and dynamic video player, music fans
will get a truly personalized experience. Music1 represents what Net Element
is all about – using smart technological innovations to redefine online
experiences.” He adds: “Music1.ru is just the start and we are poised to
leverage its technologies, platforms and relationships to really show music
rights holders in the countries of the Commonwealth of Independent States
(CIS) that it is possible to make money from digital music distribution
worldwide.”

Music1.ru also will serve as the digital content platform featuring popular
music events in Russia, including the “Pesnya Goda” festival and “New Wave”
international contest for emerging pop artists.

During its beta phase, Music1.ru provided an online platform that enables the
popular “New Wave” competition for the first time to receive applications and
select contestants online via Net Element’s proprietary technologies.
Music1.ru beta tested this submission process for NewWave 2012 and
successfully gathered submissions from participants, while attracting more
than 20,000 votes during the six-day event. Music1 plans to broaden its
relationship with the NewWave competition for 2013 by releasing new online
destinations for the contest.

“Music1.ru was a vital part of the success of New Wave 2012 by broadening our
reach and providing contestants and fans with an easy, interactive way to
enter the contest and vote for their favorite bands online,” said Alexander
Rumancev, New Wave’s general director. “Based on our success already with
Music1.ru during its beta phase, we look forward to expanding our footprint
this year and accepting submissions through Music1.ru.”

Music1.ru incorporates Launchpad and Music Brain, two of the innovative
technologies developed by Net Element, a company that owns and operates
several online destinations and has patents pending for music recommendation
engines and playlist-building technologies. Launchpad is a proprietary content
management system that helps facilitate contests and has been used by top
brands like Nokia as well as universities and festivals worldwide. Music Brain
is a unique artificial intelligence and recommendation engine that helps
determine user preferences and tailor user experiences.

About Net Element International (NASDAQ:NETE)

Net Element International(NASDAQ: NETE) is a global technology-driven group
specializing in electronic commerce and mobile payments. The company owns and
operates a mobile payments company, TOT Money, as well as several popular
content monetization verticals. Together with its subsidiaries,Net Element
Internationalenables ecommerce and content-management companies to monetize
their assets in ecommerce and mobile commerce environments. Its global
development centers and high-level business relationships inthe United
States,Russiaand Commonwealth of Independent States strategically position
the company for continued growth. The company has U.S. headquarters
inMiamiand international headquarters inMoscow. More information is
available atwww.netelement.com.

About Deezer

Deezer delivers an exciting, broad and truly global music experience to more
than 26 million music fans across 180 territories. With 3 million paying
subscribers, more than 1,6 million Facebook fans and more than 100 million
shareable playlists, Deezer allows fans to enjoy music unconstrained by any of
the barriers of the past, providing access to a catalogue of more than 20
million tracks, instantly available on any device - smartphone, laptop,
tablet, home speakers, car, or work PC. Deezer’s mantra is music discovery,
helping fans rediscover the joy of finding and sharing fantastic new music
through specially selected editorial recommendations for every single market
in which it is present. With an international partnership with Facebook and
strategic telecoms partnerships with Belgacom, Orange, Everything Everywhere
and Telenor, amongst many others, Deezer is committed to bringing music to new
audiences worldwide.

Editor’s Notes: Interviews may be coordinated upon request.

Contact:

Net Element International
Dan Bruck, 305-507-8808
dbruck@netelement.com
www.netelement.com
 
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