Net Element Announces The Immediate Access Of Music1’s Video And Music Library Via Leading Song Download Services Including Spotify And Google Music

Net Element International (NASDAQ: NETE), a technology-driven group specializing in electronic commerce and mobile payment processing today is announcing, through its subsidiary Music1, the immediate access of Music1’s video and music library via leading song download services including Spotify and Google Music. Now, hundreds of Russian musicians, including the country’s leading Pop, Shanson and Indie Rock artists, will have their songs available on over 40 download services worldwide.

Music1.ru, powered by Net Element’s proprietary Digital Music Discovery Engine, creates a personalized experience for the discovery of Russian concerts and music videos. Created through collaboration between Net Element and Mr. Igor Krutoy’s record company, “ARS Records”, the online and mobile monetization platform will expand Music1.ru’s current library of more than 2,000 hours of music videos and concert footage including both popular Russian and international titles. The Music1.ru endeavor is expected to become the leading Russian-based destination and monetization platform for Russian-originated digital music content management companies and content producers that are actively seeking distribution beyond Russia.

“When what you want is Russian music, concerts and entertainment, our distribution agreements mean you can get it all, in a place convenient for you,” said Dmitry Kozko, Net Element’s president. “Having a direct distribution network gives fans access to the music they love and our digital content monetization platform will provide an opportunity for Russian music performers to enjoy the benefits of having an appreciative, passionate and global audience.” Music lovers around the world can now discover, explore, buy and share music by Alsou, Alexander Rosenbaum, Sergey Krestovsky, among many others.

“For artists, having an audience is motivating and fulfilling and we want to do everything we can to make our music accessible worldwide," said best-selling artist Alsou. “With this new collaboration, your favorite melody can always be at your fingertips wherever and whenever you happen to be.”

More than just a streaming destination, the Music1.ru platform gives users new ways to discover music and serves as an online and mobile destination for a personalized entertainment experience. Its proprietary recommendation engine matches visual cues with music playlists and users’ preferences. Wherever Russian music is in demand, either in the CIS region or beyond – Music1 will strive to ensure digital distribution via leading online music retailers. With the goal of becoming the primary platform and source for Russian music content, Music1 will continue to expand penetration and territory growth.

Said Oleg Firer, Net Element’s CEO: “With Music1’s robust feature set including our music discovery engine, playlist-building technologies and dynamic video player, music lovers will be able to seek, locate and enjoy their own unique entertainment consumed in a truly individual way. Our agreement with over 40 portals will make it clear to music rights holders in the countries of the Commonwealth of Independent States (CIS) that Music1 is the company to partner with to protect creative rights, build artist awareness and generate ongoing revenue.”

Music1.ru also will serve as the digital content platform featuring popular music events in Russia, including the “Pesnya Goda” festival and “New Wave” international contest for emerging pop artists. Music1.ru incorporates Launchpad and Music Brain, two of the innovative technologies developed by Net Element, a company that owns and operates several online destinations and has patents pending for music recommendation engines and playlist-building technologies. Launchpad is a proprietary content management system that helps facilitate contests and has been used by top brands like Nokia as well as universities and festivals worldwide. Music Brain is an artificial intelligence and recommendation engine that helps determine user preferences and tailor user experiences.

About Net Element International (NASDAQ:NETE)

Net Element International ( NASDAQ: NETE ) is a global technology-driven group specializing in electronic commerce and mobile payments. The company owns and operates a mobile payments company, TOT Money, as well as several popular content monetization verticals. Together with its subsidiaries, Net Element International enables ecommerce and content-management companies to monetize their assets in ecommerce and 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 international headquarters in Moscow. More information is available at www.netelement.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether Music1.ru becomes the leading Russian-based destination and monetization platform for Russian-originated digital music content management companies and content producers; whether Music1 becomes the primary platform and source for Russian music content; whether Music1 continues to expand penetration and territory growth; and whether Net Element International or its business continues to grow. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Net Element International and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Net Element International’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Net Element International’s ability to maintain existing, and secure additional, contracts with users of its payment processing services; (iii) Net Element International’s ability to successfully expand in existing markets and enter new markets; (iv) Net Element International’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Net Element International’s business; (viii) changes in government licensing and regulation that may adversely affect Net Element International’s business; (ix) the risk that changes in consumer behavior could adversely affect Net Element International’s business; (x) Net Element International’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K and the subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K filed by Net Element International with the Securities and Exchange Commission. Net Element International anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Net Element International assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Copyright Business Wire 2010

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