News from the Wire

Net Element's TOT Money inks deal with Bank Otkritie

Monday, November 24, 2014 — 12:19:57 (EST)

Miami, Nov. 24, 2014 -- Net Element, Inc. (NASDAQ: NETE) ("the Company"), a technology-driven group specializing in mobile payments and value-added transactional services in emerging countries and in the United States, announces that its indirect Russian subsidiary, OOO TOT Money ("TOT Money"), has entered into a financing agreement with Bank Otkritie Financial Corp. ("Bank Otkritie"), one of Russia's largest private listed banks. This financing is complementary to the Company's Alfa-Bank factoring facility and provides additional flexibility and capacity to expand our presence in Russia's transactional services market. In conjunction with the Alfa-Bank factoring agreement, TOT Money will have approximately $15 million of available credit to help fund its growth.

Per the three-year Agreement, TOT Money will assign to Bank Otkritie its accounts receivable as security for financing in an aggregate amount of up to 200 million Russian rubles (approximately USD $4.2 million based on the currency exchange rate as of the close of business November 17, 2014) provided by Bank Otkritie to TOT Money. Included in this Agreement, Moscow-based Bank Otkritie will track the status of TOT Money's account receivables, monitor timeliness of payment of such accounts receivable, and provide related services. Oleg Firer, Net Element chief executive officer, stated, "This financing agreement provides TOT Money with an added measure of flexibility and foundation needed to advance its position in the Russian mobile payments industry. We're honored to partner with Bank Otkritie as we continue to grow this business and look forward to the opportunities which it provides."

Additional information regarding this financing may be found in Net Element's 8K, which was filed with the Securities and Exchange Commission (SEC) on November 19, 2014, and may be obtained from the SEC's Internet website at www.sec.gov .

About Bank Otkritie Financial Corp.

Bank Otkritie is a full-service financial corporation offering retail, corporate and institutional clients a wide range of bank, investment, insurance and pension plan solutions. The bank operates mostly in Russia and has also been successful in developing its business in the U.S. and the UK.

Bank Otkritie's investment unit ranks among leading Russian companies on the London Stock Exchange and is one of the top three largest investment companies on the Moscow Stock Exchange in terms of turnover. More information is available at: www.otkritie.com/en .

About Net Element

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 been ranked as the #1 SMS content provider by 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. Net Element has U.S. headquarters in Miami and headquarters in Moscow. More information is available at www.netelement.com .

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information: bankcardlife.com?orid=33533&opid=1 .

Source: Company press release.