SOURCE: Net Element, Inc.

Net Element, Inc.

June 29, 2015 07:30 ET

Net Element's Pending Acquisition PayOnline Signs Premium Dating Networks to Global Merchant Processing Contract

Minimum Processing Commitment of $300 Million in Transactions Over 3 Years

MIAMI, FL--(Marketwired - Jun 29, 2015) - Net Element, Inc. (NASDAQ: NETE) ("Net Element" or the "Company") today announced signing by PayOnline of a new 3-year contract to process transactions for certain international dating networks, including AnastasiaDate, AmoLatina and AsianDate.

The social networks receive over 150 million online visitors annually and have over 4 million registered users that spend over 360 million hours on the sites per year.

Net Element currently manages, operates and is in the process of integrating the PayOnline group of companies pending closing of Net Element's acquisition of the company.

The contract with the majority owner of the dating networks, Social Discovery Ventures ("SDV"), provides for minimum net revenues to Net Element in the amount of $1.2 million over 3 years and a minimum transaction processing commitment of $300 million.

The contract underscores Net Element's advantage as a global payments-as-a-service platform that facilitates cross-border transactions yet on-boards through a single interface.

SDV's dating networks will use PayOnline's state-of-the-art global online payments gateway and fraud-management tools to manage its international online transaction processing.

"The millions of international users on our premium dating networks require a reliable service able to process high volume, cross-border transactions using all forms of payments," commented Anthony Volpe, Social Discovery Ventures chief marketing officer. "We selected Net Element because they met that need."

"This contract win demonstrates our ability to quickly derive value from strategic acquisitions and partnerships," commented Oleg Firer, Net Element CEO. "As we emerge from a period of financial and business restructuring, we plan to see more such value driving developments as we progress into our growth phase."

About Net Element 
Net Element, Inc.
(NASDAQ: NETE) operates a payments-as-a-service platform for small to medium enterprise ("SME") in the US, Russian Federation and other international markets. In the US it aims to grow transactional revenue by innovating SME productivity services such as its cloud based, restaurant point-of-sale solution Aptito. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions such as UAE, Kazakhstan, India and Latin America. It maintains offices in Miami, FL and in Russia. Further information is available at

About Social Discovery Ventures

Social Discovery Ventures is the international umbrella brand for group of technology and software engineering companies, which provide platforms for social discovery, personal development, and online entertainment. SDV invests into, develops and supports a range of B2C Internet projects and brands under the framework of social discovery.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether the Company's pending acquisition of PayOnline will be finalized, whether the contemplated minimum projected net revenues and minimum transaction processing commitment resulting from the referenced processing contract will materialize, whether Net Element can secure any additional financing and if such additional financing will be adequate to meet the Company's objectives. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Net Element and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Net Element's ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Net Element's ability to maintain existing, and secure additional, contracts with users of its payment processing services; (iii) Net Element's ability to successfully expand in existing markets and enter new markets; (iv) Net Element's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Net Element's business; (viii) changes in government licensing and regulation that may adversely affect Net Element's business; (ix) the risk that changes in consumer behavior could adversely affect Net Element's business; (x) Net Element's ability to protect its intellectual property; (xi) local, industry and general business and economic conditions; (xii) adverse effects of potentially deteriorating U.S.-Russia relations, including, without limitation, over a conflict related to Ukraine, including a risk of further U.S. government sanctions or other legal restrictions on U.S. businesses doing business in Russia. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K and the subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K filed by Net Element with the Securities and Exchange Commission. Net Element anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Net Element assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

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