The Board of Directors of Net Element, Inc. nominated and elected the following current independent directors to fill in the vacancies on the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee of the Board of Directors, which vacancies resulted from the resignation, effective June 30, 2017, of William Healy: James Caan was elected to serve as a member of the Audit Committee and the Compensation Committee; Drew Freeman was elected to serve as a member of the Nominating and Corporate Governance Committee and new Chairman of the Compensation Committee; Howard Ash was elected to serve as new Chairman of the Nominating and Corporate Governance Committee.