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Net Element Q1 2016 processing volume grows 41 percent over Q1 2015

Monday, May 23, 2016 — 12:35:57 (EDT)

Miami, May 23, 2016 -- Net Element, Inc. (NASDAQ: NETE) (“us” or “we”), a provider of global mobile payment technology solutions and value-added transactional services, announced today its transactions processing volumes for the first quarter of 2016.

Total transactions processed for the first quarter of 2016 were 43.1 million as compared to 30.6 million for the first quarter of 2015. The 41% increase in transactions processed came primarily from North America Transactions Solutions which saw a 76% increase from 11.0 million in the first quarter of 2015 to 19.4 million in the first quarter of 2016. Online solutions experienced a 56% increase from 3.6 million transactions processed in the first quarter of 2015 to 5.6 million transactions process in first quarter of 2016. Mobile Solutions processed 18.1 million transactions during the first quarter of 2016 versus 16.0 million in the first quarter of 2015 which represented a 13% increase. The majority of growth in all segments was organic.

Oleg Firer, Chief Executive Officer of Net Element, commented “We are pleased with our transaction growth and the increased adoption of online and mobile payments services. Our online and mobile payments offerings enables monetization of digital content across multiple interactive channels and allows our customers to use any mobile device or computer to complete a transaction. We expect this trend to continue for the remainder of 2016 and beyond.”

Eliminating the effects of foreign currency exchange, the total dollars processed for the first quarter of 2016 increased 73% from $233.6 million in the first quarter of 2015 to $405.1 in the first quarter of 2016. North America Transactions solutions saw the largest increase of 74% from $171.0 million processed in the first quarter of 2015 to $297.0 million in the first quarter of 2016. Online Solutions processed $57.3 million in the first quarter of 2015 and $99.0 million in the first quarter of 2016, representing a 73% increase. Mobile Solutions processed $5.3 million in the first quarter of 2015 versus $9.1 million during the first quarter of 2016 or an increase of 72%. Effects of foreign currency exchange were eliminated by converting rubles to dollars at the average rate for the first quarter of 2016 for both periods.

Mr. Firer also stated “I am very pleased with the 42% year over year growth of merchants in North America. Our emerging markets client base has increased 48% in the first quarter of 2016 over the same period in 2015.”

The following represents our geographic breakdown of processed dollar volume and processed transaction volume between North America and Emerging Markets:

Total transactions processed geographically in North America and Emerging Markets in the first quarter of 2016 was 19.4 million and 23.7 million respectively, which represents an increase of 76% and 21% over the same time period in 2015. Total volume processed in North America and Emerging Markets in the first quarter of 2016 was $297 million and $110 million respectively, which represents an increase of 74% and 75% over the same period in 2015.

About Net Element

Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise (“SME”) in the US and selected emerging markets. In the US, we are growing transactional revenue with innovative services including our cloud based, restaurant point-of-sale solution Aptito. Internationally, Net Element’s strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions such as UAE, Kazakhstan, Kyrgyzstan and Azerbaijan where initiatives have been recently launched. Further information is available at www.netelement.com .

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Source: Company press release.