Changes to IVAS VAT treatment

Mail.Ru Group receives confirmation from Russian tax authorities that IVAS revenues are eligible for VAT exemption

June 28th. Mail.Ru Group Limited (MAIL.IL, hereinafter referred as "the company"), one of the largest internet companies in Russia, today announces that following from the confirmation received earlier in the year concerning the VAT treatment of Russian games revenues, it has received formal confirmation from the Russian tax authorities that starting from January 1st 2017, a significant part of the Russian IVAS revenues are eligible for exemption from Russian VAT going forward.

As with the pricing of games following this change, there is no change to the pricing of the Russian IVAS revenues.

The company will report Q2 results on Thursday August 10th and will update full year guidance accordingly at that time.

For further information please contact:

Investors

Matthew Hammond

Phone: +971 505 56 1315

E-mail: [email protected]

Press

Nataliya Bogdanovich

Phone: +7 965 396 10 08

E-mail: [email protected]

About Mail.Ru Group

Mail.Ru Group, international brand My.com (MAIL.IL, listed since November 5, 2010), is the largest internet business in Russia, based on mobile daily audience (TNS Mobile Index, population aged 12-64 in the cities 700 000+, February 2017, Russia). Mail.Ru Group's sites reach approximately 90% of Russian Internet users on a monthly basis (comScore, December 2016).

In line with the 'communitainment' (communication plus entertainment) strategy, the Company is building an integrated communications and entertainment platform. The Company owns Russia's leading email service and one of Russia's largest internet portal, Mail.Ru. The Company operates two largest Russian language social networks, Vkontakte (VK) and Odnoklassniki (OK), and Russia's largest online games business, including such gaming titles as Warface, Armored Warfare, Skyforge and Perfect World. The Company also includes a leading OpenStreetMap-based offline mobile maps and navigation service MAPS.ME, popular instant messaging service ICQ, mobile location-based marketplace Youla and long-distance ridesharing service BeepCar.

The company owns 100% of mobile games developer Pixonic and 100% of Delivery Club, the number one food delivery company in Russia. Mail.Ru Group also holds an equity stake in a number of small venture capital investments in various Internet companies in Russia, Ukraine and Israel.

 Mail.Ru Group is committed to facilitating the development of IT education in Russia. The company holds annual international contest for programmers Russian Code Cup, VK Cup, Technology Forums, and partners with university faculties. Mail.Ru Group has controlling interest in GeekBrains, the online learning platform for developers.

 In November 2013, the company launched My.com in the US and later worldwide to provide communication and entertainment products and services for the global audience.

Mail.Ru Group Limited is a holding company for a number of subsidiaries, including Russian operating subsidiaries. Under the term Mail.Ru Group on this release we understand as the context requires Mail.Ru Group Limited, Mail.Ru Group Limited together with its subsidiaries or Mail.Ru Group Limited's respective subsidiary.