2015-10-29

MOSCOW, Russia (29 October 2015)— PJSC “MegaFon” (“MegaFon”, or the “Company”) (LSE: MFON), a leading Russian telecommunications operator, announces its unaudited consolidated financial results¹ for the third quarter and the first nine months of 2015.

Key Financial and Operational Highlights of the Third Quarter 2015²

• Consolidated revenue increased by 0.3% year over year (“y-o-y”)³ to RUB 81,279 million
• Revenue from wireless data services increased by 24.6% y-o-y to RUB 21,625 million
• OIBDA decreased by 3.0% y-o-y to RUB 36,145 million
• OIBDA margin decreased to 44.5% versus 46.0% in Q3 2014
• Net Profit increased by 4.0% y-o-y to RUB 13,306 million
• CAPEX increased by 81.6% y-o-y to RUB 25,908 million
• Free Cash Flow amounted to RUB 8,870 million
• Net Debt as of 30 September 2015 was RUB 122,964 million
• The number of mobile subscribers grew by 6.2% y-o-y to 75.9 million⁴ as of 30 September 2015

Key Financial Highlights for the First Nine Months of 2015

• Consolidated revenue decreased by 0.5% y-o-y to RUB 231,403 million
• Revenue from wireless data services increased by 18.6% y-o-y to RUB 58,939 million
• OIBDA decreased by 1.2% y-o-y to RUB 102,846 million
• OIBDA margin was 44.4% versus 44.7% y-o-y
• Net Profit decreased by 0.6% y-o-y to RUB 33,709 million
• CAPEX increased by 29.2% y-o-y to RUB 46,537 million
• Free Cash Flow totaled RUB 39,961 million

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Operational and Financial Data Pack

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MegaFon will be hosting an analyst and investors conference call today with a simultaneous audiocast to discuss its Q3 2015 results. Time: 11.00 (New York time), 15.00 (London time), 18.00 (Moscow time)

Dial-in details:

Local — Moscow, Russia:+7 495 213 0977National free phone — Russian Federation:+8 800 500 9311Local — London, United Kingdom:+44 (0) 20 3427 0503National free phone — United Kingdom:0 800 279 4977Local — New York, United States of America:+1 212 444 0481National free phone — United States of America:+1 877 280 2296

Access confirmation code: 8407512 Password: MegaFon

For access to the live and on demand webcast from any IOS apple or Android mobile devices:

Replay facilities will be available for 7 days:

Replay facilities (will be available for 7 days)Replay password8407512 followed by #Russia Toll Free+8 10 800 2870 1012UK Toll Free0 800 358 7735USA Toll Free+1 866 932 5017Local — Moscow, Russia+7 495 705 9453Local — London, United Kingdom+44(0)20 3427 0598Local — New York, United States of America+1 347 366 9565

¹ Based on the IFRS interim condensed consolidated financial statements reviewed by JSC KPMG.

² See Schedule 1 for definitions of the terms used and Schedule 2 for the reconciliation of Non-IFRS measures. Due to rounding manual calculations for financials and KPIs may differ from those displayed.

³ Year over year (or “y-o-y”) means the same periods in the current and previous year on either a quarterly or yearly basis.

⁴ Consolidated data includes subscribers of the Company in Russia and the subscribers of its subsidiaries: “TT mobile” CJSC in the Republic of Tajikistan, “AQUAFON-GSM” CJSC in the Republic of Abkhazia and “OSTELEKOM” CJSC in the Republic of South Ossetia.