As part of preparation for the upcoming annual shareholders meeting of Net Element, Inc., on March 9, 2016, David P. Kelley II has informed the Nominating And Governance Committee of the Board of Directors of the Company (the "Board") that, at the end of his current term as a Director of the Company, he will no longer stand for reelection as Director of the Company (and consequently as chairman of each of the Audit Committee, the Nominating and Corporate Governance Committee and the Compensation Committee of the Board) due to personal reasons and not over any disagreement with the Board of or the Company's management.