MegaFon acquires Mail.ru shares from USM

9th February 2017 For immediate release

MAIL.RU GROUP LIMITED

Notification of MegaFon acquisition of Mail.ru shares from USM subsidiaries

MAIL.RU GROUP LIMITED ("Mail.ru Group" or the "Company") has been informed of the closing of the acquisition by MegaFon (LSE: MFON) of 11.5 million Class A shares and 21.9 million ordinary shares, representing an approximately 15.2% economic and 63.8% voting stake in Mail.Ru Group Limited from subsidiaries of USM Holdings.

Mail.ru has been informed that the total consideration for the acquisition was US$ 740 million. MegaFon paid US$ 640 million in cash at closing earlier today, while the remaining consideration in the amount of US$ 100 million will be paid on a deferred basis in one year after the Closing.

Ends

For further information please contact:

Investors:

Matthew Hammond

Mail.Ru Group

Phone: +971 505 56 1315

E-mail: [email protected]

Press

Madina Tayupova

Phone: +7 926 510 50 21

E-mail: [email protected]

About Mail.Ru Group

Mail.Ru Group (LSE:MAIL, listed since November 5, 2010) is a leading company in the Russian-speaking Internet markets (Russia is Europe's largest Internet market measured by the number of users, comScore). Mail.Ru Group's sites reach approximately 93% of Russian Internet users on a monthly basis (comScore, June 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 (TNS, all Russia, age 12-64, June 2016). The Company operates the three largest Russian language social networks, Vkontakte (VK), Odnoklassniki (OK) and Moi Mir (My World), 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, two instant messaging (IM) services, Mail.Ru Agent and ICQ, which are popular in Russia and Commonwealth of Independent States (CIS), and other products.

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.