Net Element Releases 8K on Reduction of Liabilities

  Net Element Releases 8K on Reduction of Liabilities

Net Element Further Reduces Liabilities following spin-off of non-core assets
                              in September 2013

Business Wire

MIAMI -- February 14, 2014

Net Element, Inc. (NASDAQ:NETE), a technology-driven group specializing in
mobile payments and value-added transactional services in emerging countries
and in the United States, is pleased to announce that the Company has
transferred its 10% interest in T1T Lab, LLC back to T1T,LLC, and as a result,
Net Element is thereby relieved all of its commitments and obligations to T1T,
including its obligation to commit $1,259,000 associated with that ownership
interest.

Net Element was issued a 10% interest in T1T Lab pursuant to a contribution
agreement reached between the companies in September 2013. As part of that
agreement, Net Element contributed to T1T Lab all of its membership and
participation interests in its subsidiaries Openfilm, LLC, Motorsport, LLC,
Splinex, LLC, LegalGuru, LLC and Music 1, LLC (collectively, the "Divested
Subsidiaries") and agreed to make a capital contribution to T1T Lab in the
amount of $1,259,000 in exchange for its 10% interest in T1T Lab. With the
dissolution of the agreement, the 10% ownership interest has been returned to
T1T Lab and Net Element is relieved of all further liabilities and obligations
to that entity. Additionally, Oleg Firer, CEO of Net Element has resigned from
his position as executive of T1T Lab effective February 7, 2014 and Dmitry
Kozko, President and Director of Net Element who formerly oversaw the Divested
Subsidiaries, has resigned from Net Element as of February 8, 2014, to pursue
other opportunities.

Additional information regarding Net Element International's divestiture may
be found in Net Element International's 8K, which was filed with the
Securities and Exchange Commission (SEC) on February 13, 2014 and may be
obtained from the SEC's Internet website at http://www.sec.gov.

About Net Element (NASDAQ: NETE)

Net Element (NASDAQ: NETE) is a global technology-driven group specializing in
mobile payments and value-added transactional services. The Company owns and
operates a global mobile payments and transaction processing provider, TOT
Group. TOT Group companies include Unified Payments, recognized by Inc.
Magazine as the #1 Fastest Growing Private Company in America in 2012, Aptito,
a next generation cloud-based point of sale payments platform, and TOT Money,
which has a leading position in Russia and has been ranked as the #1 SMS
content provider by Beeline, Russia's second largest telecommunications
operator. Together with its subsidiaries, Net Element enables ecommerce and
adds value to 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 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 Net Element or its business continues to
grow. These forward-looking statements include, without limitation, the extent
that the conveyance of its ownership interest in T1T Lab, LLC in return for
absolution of all obligations to T1T Lab, LLC will benefit the company in the
long term; and the extent that the resignation of Dmitry Kozko as President
and Director of the Company may impact future operations on the company. 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 and are difficult to predict, Examples of such
risks and uncertainties include, but are not limited to: (i) Net Element 's
ability (or inability) to obtain additional financing in sufficient amounts or
on acceptable terms when needed; (ii) Net Element 's ability to maintain
existing, and secure additional, contracts with users of its payment
processing services; (iii) Net Element 's ability to successfully expand in
existing markets and enter new markets; (iv) Net Element '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 's business; (viii) changes in government licensing and regulation
that may adversely affect Net Element 's business; (ix) the risk that changes
in consumer behavior could adversely affect Net Element 's business; (x) Net
Element '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 with the
Securities and Exchange Commission. Net Element anticipates that subsequent
events and developments may cause its plans, intentions and expectations to
change. Net Element 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:

Capital Markets Contact:
Alexandra Petek, 415-248-5681
apetek@merrimanco.com
www.netelement.com
 
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