Net Element Announces the Immediate Access of Music1’s Video and Music Library via Leading Song Download Services Including

  Net Element Announces the Immediate Access of Music1’s Video and Music
  Library via Leading Song Download Services Including Spotify and Google
  Music

Hundreds of Russian Musicians Including the Country’s Leading Pop, Shanson and
    Indie Rock Artists Will Have Their Songs Available on over 40 Download
                              Services Worldwide

Business Wire

MOSCOW & MIAMI -- June 18, 2013

Net Element International (NASDAQ: NETE), a technology-driven group
specializing in electronic commerce and mobile payment processing today is
announcing, through its subsidiary Music1, the immediate access of Music1’s
video and music library via leading song download services including Spotify
and Google Music. Now, hundreds of Russian musicians, including the country’s
leading Pop, Shanson and Indie Rock artists, will have their songs available
on over 40 download services worldwide.

Music1.ru, powered by Net Element’s proprietary Digital Music Discovery
Engine, creates a personalized experience for the discovery of Russian
concerts and music videos. Created through collaboration between Net Element
and Mr. Igor 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.

“When what you want is Russian music, concerts and entertainment, our
distribution agreements mean you can get it all, in a place convenient for
you,” said Dmitry Kozko, Net Element’s president. “Having a direct
distribution network gives fans access to the music they love and our digital
content monetization platform will provide an opportunity for Russian music
performers to enjoy the benefits of having an appreciative, passionate and
global audience.” Music lovers around the world can now discover, explore, buy
and share music by Alsou, Alexander Rosenbaum, Sergey Krestovsky, among many
others.

“For artists, having an audience is motivating and fulfilling and we want to
do everything we can to make our music accessible worldwide," said
best-selling artist Alsou. “With this new collaboration, your favorite melody
can always be at your fingertips wherever and whenever you happen to be.”

More than just a streaming destination, the Music1.ru platform gives users new
ways to discover music and serves as an online and mobile destination for a
personalized entertainment experience. Its proprietary recommendation engine
matches visual cues with music playlists and users’ preferences. Wherever
Russian music is in demand, either in the CIS region or beyond – Music1 will
strive to ensure digital distribution via leading online music retailers. With
the goal of becoming the primary platform and source for Russian music
content, Music1 will continue to expand penetration and territory growth.

Said Oleg Firer, Net Element’s CEO: “With Music1’s robust feature set
including our music discovery engine, playlist-building technologies and
dynamic video player, music lovers will be able to seek, locate and enjoy
their own unique entertainment consumed in a truly individual way. Our
agreement with over 40 portals will make it clear to music rights holders in
the countries of the Commonwealth of Independent States (CIS) that Music1 is
the company to partner with to protect creative rights, build artist awareness
and generate ongoing revenue.”

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. 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 an 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
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.

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 “continue,” “will,” “may,” “could,”
“should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” and similar expressions are intended to
identify such forward-looking statements. These forward-looking statements
include, without limitation, whether Music1.ru becomes the leading
Russian-based destination and monetization platform for Russian-originated
digital music content management companies and content producers; whether
Music1 becomes the primary platform and source for Russian music content;
whether Music1 continues to expand penetration and territory growth; and
whether Net Element International or its business continues to grow. 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; (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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