News from the Wire

Net Element secures funding for planned expansion

Tuesday, April 22, 2014 — 16:15:39 (EDT)

Miami, April 22, 2014 -- Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company), 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 completed the first closing of $11.2 million from a new investor, Cayman Invest, SA ("Cayman Invest").

Cayman Invest has agreed to fund $11.2 million and in return the Company has issued to Cayman Invest, SA a note that is convertible at or before a maturity date of March 31, 2015 into 15% of the outstanding shares of Net Element. This investment by Cayman Invest is structured as a convertible debenture that does not accrue interest before the maturity date. The $11.2 million raise is part of a larger financing round totaling $30 million that the Company plans to complete this year.

"Net Element has demonstrated the viability of its business model and the value-added nature of its disruptive technologies in the financial services technology sector. We expect Net Element's service offerings to be key enablers for the growth in cashless transactions in the emerging markets," said Anvar Mametov, Managing Director of Cayman Invest. "We are delighted to support the Company in further developing and globally scaling the business."

Oleg Firer, CEO of Net Element commented, "I am pleased to announce this relationship with Cayman Invest as we execute an aggressive growth strategy with the proceeds from this capital raise." Firer continued, "We are dedicated to building shareholder value and this transaction provides the Company with critical expansion capital from a committed and highly valued international investor."

Additional information regarding this financing may be found in Net Element's 8K, which was filed with the Securities and Exchange Commission (SEC) on April 22, 2014 and may be obtained from the SEC's Internet website at 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 .

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Source: Company press release.