16 November 2016. Mail.Ru Group Limited (LSE: MAIL, hereinafter referred as "the Company" or "the Group"), one of the largest Internet companies in the Russian-speaking Internet market, notes today's press speculation and confirms that it is discussing potential commercial collaboration with PJSC MegaFon (LSE: MFON) to jointly develop new products and services aimed at mobile subscribers and Internet users in the companies' home market. Market dynamics and advances in technology have created favorable conditions for greater cooperation between telecom providers and digital media companies. As leaders in their respective industries, MegaFon and Mail.Ru Group are natural partners for such cooperation and have been exploring multiple commercial projects aimed at creating strategic and economic value for both companies. Any agreements between the companies would be on an arms-length and fully commercial basis.

Mail.Ru Group confirms it is not involved in any discussions of any potential merger with MegaFon. Mail.Ru Group cannot comment on any shareholder transactions.