Mail Ru : Product collaboration between Megafon and Mail.Ru Group

23.12.2016

Product collaboration between Megafon and Mail.Ru Group

Following the statement of 16 November Mail.Ru Group (LSE: MAIL, hereinafter referred as 'the Company' or 'the Group') today confirms that it has agreed terms for collaboration in the area of joint development of new products and services aimed at mobile subscribers and Internet users in the companies' home market with PJSC MegaFon (LSE: MFON).

The co-operation will focus on 2 areas:

1. Mobile offering for VK users: VK will make available its brand to MegaFon for the creation of a new mobile offering. The new service, VK Mobile, will use the MegaFon/Scartel network and infrastructure. This will expand VK mobile ecosystem and brand recognition adding extra value to the VK user experience.
2. Co-operation on data analytics: The companies will cooperate in data analytics for better segmentation of their users. The agreement is beneficial for the purposes of each Party's core business i.e. for Mail.Ru/VK ad targeting technologies and for MegaFon for its telecom services' upsale.

The agreements have been approved by all non-interested directors of Mail.Ru Group and the services will start to be rolled out in H1 2017. Both areas of co-operation are on an arms length basis and fully commercial terms. Revenues will be shared according to an agreed commercial formula.

Commenting on the agreement, Boris Dobrodeev, CEO (Russia) of Mail.Ru Group, said: 'We are very pleased to have concluded the commercial collaboration agreement with MegaFon. There are clearly areas of mutual benefit for users and for both companies in working together'.

For Further Information Please Contact:

Investors

Matthew Hammond

E-mail: hammond@corp.mail.ru

Press

Madina Tayupova

E-mail: m.tayupova@corp.mail.ru