Moscow, Russian Federation (09 February 2017) — Public Joint Stock Company “MegaFon” (LSE: MFON), a leading Russian telecommunications operator (“MegaFon” or the “Company”), announces the completion of the acquisition (the “Acquisition”) of 11.5 mln Class A shares and 21.9 mln ordinary shares, representing an approximately 15.2% economic or 63.8% voting stake in Mail.Ru Group Limited (LSE: MAIL) (“Mail.Ru”), from subsidiaries of USM Holdings, MegaFon’s controlling shareholder.

Pursuant to the decision taken at the Company’s Extraordinary General Meeting of Shareholders¹ on 20 January 2017, MegaFon has completed the Acquisition of a 11,500,100 Class A Shares and 21,940,148 Ordinary Shares, representing an approximately 15.2% of the charter capital and 63.8% voting stake in Mail.Ru Group Limited from New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited, subsidiaries of USM Holdings.

The total consideration for the Acquisition was US$ 740 million. The Company paid US$ 640 million in cash at closing (the “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.