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Net Element to Invest in Mobile Payments Technologies



  Net Element to Invest in Mobile Payments Technologies

 Multi-Year Agreement and Multimillion Dollar Investment Allocation Provides
  Exclusive Access to Early Stage Mobile Payments and Transactional Services
                                  Technology

Business Wire

MOSCOW -- May 28, 2013

Net Element International (NASDAQ: NETE), a technology-driven group
specializing in electronic commerce and mobile payment processing is pleased
to announce today that they have entered into an investor accreditation
agreement to develop new technology with The Skolkovo Foundation, a government
funded research and development center in Moscow. This multi-year and
multimillion dollar investment allocation by Net Element provides exclusive
access to early stage mobile payments and transactional services technology.

Pursuant to the agreement, Net Element will set aside up to $12 million (370
mln Rub) over the next three years with Skolkovo for investment in companies
and technologies that meet NETE’s investment criteria and strategic
initiatives. The role of The Skolkovo Foundation is to oversee the creation of
the Skolkovo Innovation Center comprising five R&D clusters (IT, Space,
Biomed, Energy Efficiency and Nuclear Technology), Technopark, the Skolkovo
Institute of Technology (a new graduate research university established in
collaboration with the Massachusetts Institute of Technology) and Skolkovo
City. Net Element’s interests are specifically focused on mobile payments and
transactional services technology projects.

“The decision to direct investments to mobile commerce development was not
made by coincidence, as Net Element provides financial solutions in the mobile
technologies field as well. And, of course, as a market insider we are
interested in further development of the industry,” said Net Element
Development Director and TOT Group Russia CEO Konstantin Zaripov.

The agreement with “Skolkovo” is not Net Element’s first experience investing
in innovative projects. Net Element International Chairman Kenges Rakishev is
a founder of Genesis Angels, a venture capital fund targeting investments in
start-ups that focus in robotics and artificial intelligence. The Chairman of
the fund, which has a current budget of more than $100 million, is the
ex-prime minister of Israel, Ehud Olmert. Located in Israel, the fund supports
research and development of innovative technologies all over the world.

“We are committed to developing technologies in Russia for use in the region
and globally,” said Oleg Firer, Net Element CEO. “In particular, we see a
clear nexus between the goals of Skolkovo and our company’s need to have
additional R&D capabilities so that we may accelerate the incubation of new
products and develop breakthrough platforms to feed our pipeline of
innovation.”

Net Element is making this announcement within days of stating their intent to
acquire Aptito, a next generation, cloud-based point of sale platform for
restaurants. The Aptito press release is available by clicking here. Net
Element’s agreement with Skolkovo puts them in good company as just two years
ago IBM – the world leader in the number of registered patents in the U.S. –
joined with Skolkovo to drive innovation in Russia and beyond. Skolkovo’s
other noteworthy corporate partnerships include Cisco, Ericsson, IBM, Intel,
Microsoft, Nokia Siemens Networks, SAP and Siemens.

The agreement was signed in Russia by the Head of the Investment Office of the
Skolkovo fund Eduard Kanalosh and Net Element Russia General Director Sergey
Khabarov.

About Net Element International (NASDAQ: NETE)

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

About The Skolkovo Foundation

The Skolkovo Foundation  has the mandate from the Russian Government to help
accelerate the transformation of Russia from a resource-intensive to an
innovation-based economy through strategic partnerships with leading
scientists and corporations (currently numbering almost 1,000 companies and
startups). The Foundation aims to strengthen the links between Russian and
International science, technology, education, entrepreneurship and investment
communities. To achieve this objective it is overseeing the creation of the
Skolkovo Innovation Center composed of five R&D clusters, Technopark, the
Skolkovo Institute of Technology (a new graduate research university
established in collaboration with the Massachusetts Institute of Technology)
and Skolkovo City, located near Moscow. Together these entities will establish
a vibrant eco-system of technological innovation and entrepreneurship. The
Foundation is a non-profit organization founded in May 2010 by the Russian
Government with a grant of $5 billion.

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. Any statements contained in this
press release that are not statements of historical fact may be deemed
forward-looking statements. Words such as “proposed,” “will,” “may,” “would,”
“could,” “should,” “expect,” “expected,” “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, the extent that Net Element International's agreement with The
Skolkovo Foundation provides Net Element International access to early stage
mobile payments and transactional services technologies. 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
Net Element International and are difficult to predict. Examples of such risks
and uncertainties include, but are not limited to: (i) Net Element
International’s ability (or inability) to obtain additional financing in
sufficient amounts or on acceptable terms when needed; (ii) Net Element
International’s ability to maintain existing, and secure additional, contracts
with users of its payment processing services; (iii) Net Element
International’s ability to successfully expand in existing markets and enter
new markets; (iv) Net Element International’s ability to successfully manage
and integrate any acquisitions of businesses, solutions or technologies,
including Unified Payments; (v) unanticipated operating costs, transaction
costs and actual or contingent liabilities; (vi) the ability to attract and
retain qualified employees and key personnel; (vii) adverse effects of
increased competition on Net Element International’s business; (viii) changes
in government licensing and regulation that may adversely affect Net Element
International’s business; (ix) the risk that changes in consumer behavior
could adversely affect Net Element International’s business; (x) Net Element
International’s ability to protect its intellectual property; and (xi) local,
industry and general business and economic conditions. 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 Net Element International
with the Securities and Exchange Commission. Net Element International
anticipates that subsequent events and developments may cause its plans,
intentions and expectations to change. Net Element International assumes no
obligation, and it specifically disclaims 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:

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