MAIL.L Regulatory News (MAIL)

Mail.Ru Group Limited

Preliminary Trading Update for Q3 2013

25 October 2013. Mail.Ru Group Limited (LSE: MAIL, hereinafter referred as "the Company" or "the Group"), one of the largest Internet companies in the high-growth Russian-speaking Internet markets, today provides an update on the preliminary unaudited segment revenues for Q3 2013.

Q3 2013 Performance Highlights

u Q3 2013 Group aggregate segment revenue grew 32.9% Y-o-Y to RUR 6,599 million (9 month 2013 Group aggregate segment revenue grew 29.9% Y-o-Y)

u Net cash position as of 30 September 2013 was RUR 26,089 million

u Monthly audience (TNS Russia) of Mail.Ru portal in September 2013 reached 33.7 million Russian users

Key Recent Developments

u Support for third-party email accounts in Mail.Ru email web service and mobile apps for iOS and Android

u Public calendars with interesting information and events in Calendar.Mail.Ru (public holidays, sport events schedule, this day in history, etc.)

u New share box, option to unlike and ability to share posts and photos from groups are available on all mobile apps and mobile web of OK

u Favourites in OK - users can add posts from news feed to favourites

u Enhanced tools for viewing and managing photos in OK (view in a full-screen mode, move to another album and quickly delete photos)

u My World released iOS and Android apps optimized for tablets

u My World introduced groups in Android app and photo section in mobile web version

u Release of mobile game Jungle Heat on iOS (in addition to Android version)

u Launch of new mobile game Lucky Fields on Android

u Target.Mail.Ru launched mobile ad platform

u Target.Mail.Ru introduced cross-device targeting (desktop/mobile) and targeting by OK group members

u Significantly redesigned version of Amigo browser released

u Search.Mail.Ru now adds relevant news headlines on search result page for Ukraine and Kazakhstan

u New design of product listing and product info page in price comparison service Torg.Mail.Ru

u Mail.Ru group sold 2.4 mln shares on Qiwi SPO in October reducing its stake to 10.4% and raising gross proceeds of $73.2 mln

u Jan Bune, formerly senior audit partner at Deloitte NL is appointed to the board as an independent non executive director to replace Marcos Galperin who stands down effective 24th October.

Commenting on the Q3 revenue update, Dmitry Grishin, Co-Founder and CEO of Mail.Ru Group, said:

"I am pleased to report that our company has had another successful period with Mail.Ru Group meeting or exceeding key performance indicators, and hence delivering strong growth across all segments. Compared to Q3 2012, group revenue increased by 32.9% reaching 6,599 million, with 9 month 2013 group revenue growing by 29.9% Y-o-Y.

As in H1 contextual advertising continues to be strong supported by a continued focus on the Target product, and our solid market share in search. In addition in Q3 contextual advertising also benefited from our monetization agreement with Yandex. Going forward we will continue to replace display inventory with Target wherever possible as this is a more efficient use of the advertising inventory. As such, we would expect our contextual revenues to continue to grow faster than display revenues.

As we commented with the H1 results Community IVAS showed good growth in Q3, with the main driver of this being the increase of paying user engagement.

Evidenced by continued Y-o-Y growth in H1 and Q3 we continue to execute on our games strategy. Warface remains an important component of this and continues to see increasing traction in terms of both users and revenues, and during Q3 it remained our top revenue generating game. Jungle Heat, which was released under the my.com brand in June, has also been a successful launch and in Q3 became a material revenue contributor with the US as the largest market, and over 90% of the revenues outside of Russia.

In Q3 we also settled into our new offices and hosted the 2013 Russian Code Cup Final for 50 most talented programmers selected from over 3,500 participants of qualification rounds.

Finally we are pleased to announce that Jan Bune will be joining the board as a new independent non-executive. Jan has outstanding corporate and audit experience and we look forward to him serving on our audit committee. Marcos Galperin stands down and we thank him for all of his contributions.

Looking forward, the structural drivers of our business remain unchanged and hence we look into Q4 2013 with confidence. Given the strong first 9 months and notwithstanding a more uncertain macro environment we are pleased to be able to re-iterate our guidance for FY 2013 revenue growth of 27-29% with contextual advertising and games showing the fastest growth. Despite the effect of the new offices we continue to keep tight control over costs and hence continue to expect that a FY 2013 group EBITDA margin of between 53-54%."

Q3 2013 Trading Update*

(*) The numbers in this table and further in the document may not exactly foot or cross-foot due to rounding

(**) Including Other IVAS revenues

Note: Group aggregate segment revenue is calculated by aggregating the segment revenue of the Group's operating segments and eliminating intra-segment and inter-segment revenues. This measure differs in significant respects from IFRS consolidated net revenue. See "Presentation of Aggregate Segment Financial Information" below.

Liquidity

As of 30 September 2013, the Group's net cash balance (including term deposits) was RUR 26,089 million, or USD 807 million[a], and the Group had no debt outstanding.

Conference call

The Mail.ru Group management team will host an analyst conference call at 14.00 UK time (17.00 Moscow time, 9.00 U.S. Eastern Daylight Time), on Friday 25th October 2013, including a Question and Answer session.

To participate in this conference call, please use the following access details:

For Further Information Please Contact:

Investors

Matthew Hammond

Mail.Ru Group

Phone: +971 505 56 1315

E-mail: hammond@corp.mail.ru

Press

Ksenia Chabanenko

Phone: +7 916 090 6626

E-mail: ks@corp.mail.ru

Cautionary Statement regarding Forward Looking Statements

This press release contains statements of expectation and other forward-looking statements regarding future events or the future financial performance of the Group. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "forecast", "intend", "will", "could", "may" or "might", the negative of such terms or other similar expressions including "outlook" or "guidance". The forward-looking statements in this release are based upon various assumptions that are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and may be beyond the Group's control. Actual results could differ materially from those discussed in the forward looking statements herein. Many factors could cause actual results to differ materially from those discussed in the forward looking statements included herein, including competition in the marketplace, changes in consumer preferences, the degree of Internet penetration and online advertising in Russia, concerns about data security, claims of intellectual property infringement, adverse media speculation, changes in political, social, legal or economic conditions in Russia, exchange rate fluctuations, and the Group's success in identifying and responding to these and other risks involved in its business, including those referenced under "Risk Factors" in the Group's public filings. The forward-looking statements contained herein speak only as of the date they were made, and the Group does not intend to amend or update these statements except to the extent required by law to reflect events and circumstances occurring after the date hereof.

About Mail.Ru Group

Mail.Ru Group (LSE:MAIL, listed since November 5, 2010) is a leading Internet company in the high-growth Russian-speaking Internet markets (Russia is Europe's largest Internet market measured by the number of users, comScore). Mail.Ru Group's sites reach approximately 85% of Russian Internet users on a monthly basis (comScore, June 2013) and the Company is the sixth largest Internet businesses globally, based on the number of total pages viewed (comScore, June 2013).

In line with the 'communitainment' (communication plus entertainment) strategy, the Company is moving rapidly to build an integrated communications and entertainment platform. The Company owns Russia's leading email service and Russia's largest internet portal, Mail.Ru (TNS, all Russia, age 12-64, June 2013). The Company operates two of the three largest Russian language social networks, Odnoklassniki (OK) and Moi Mir (My World), and Russia's largest online game business. The Company's portfolio also includes Mail.Ru Agent and ICQ - two instant messaging services popular in Russia and CIS.

The Company holds minority equity stakes in VKontakte (39.99%) and Qiwi (10.4%). The Company also holds a number of small venture capital investments in various Internet companies in Russia and Ukraine.

Presentation of Aggregate Segment Financial Information

The Group aggregate segment financial information is derived from the financial information used by management to manage the Group's business by aggregating the segment financial data of the Group's operating segments and eliminating intra-segment and inter-segment revenues and expenses. Group aggregate segment financial information differs significantly from the financial information presented on the face of the Group's consolidated financial statements in accordance with IFRS. In particular:

• The Group's segment financial information excludes certain IFRS adjustments which are not analysed by management in assessing the core operating performance of the business. Such adjustments affect such major areas as revenue recognition, deferred tax on unremitted earnings of subsidiaries, share-based payment expense, impairment of investments, business combinations, fair value adjustments, amortisation and impairment thereof, net foreign exchange gains and losses, share in financial results of non-core associates, as well as irregular non-recurring items that occur from time to time and are evaluated for adjustment as and when they occur. The tax effect of these adjustments is also excluded from segment reporting.

• The segment financial information is presented for each period on the basis of an ownership interest as of the date hereof and consolidation of each of the Group's subsidiaries, including for periods prior to the acquisition of control of the entities in question, so long as the Group held at least one share of such entities during such periods. The financial information of subsidiaries disposed of prior to the date hereof is excluded from the segment presentation starting from the beginning of the earliest period presented.

• Segment revenues do not reflect certain other adjustments required when presenting consolidated revenues under IFRS. For example, segment revenue excludes barter revenues and adjustments to defer online gaming and social network revenues under IFRS.