Exhibit 99.1

CAPITAL MARKETS CONTACT:

Net Element Investor Relations

investors@netelement.com
(786) 923-0502

www.netelement.com

Net Element Reports 2014 Annual Results and Provides Strategic Update

2014 debt reduced from $31 million to $3 million, G&A from $12 million to $7 million, excluding non-cash items

MIAMI – March 31, 2015 – Net Element, Inc. (NASDAQ: NETE) (“Net Element” or the “Company”), a provider of global mobile payment technology solutions and value-added transactional services today reported financial results for the fiscal year ended December 31, 2014.

Key milestones (2014 - 2015 YTD):

2015 Initiatives:

“Now that we have strengthened our balance sheet by eliminating most of our debt and created a restructured operational foundation, we can advance our plan to grow market share, accelerate sales and expand profitability,” commented Oleg Firer, CEO.

“Our growing traditional and mobile technology base, our strengthened balance sheet and strategic emphasis on Small to Medium Enterprise (SME) are competitive advantages that we expect to capitalize on during 2015.”

2014 Operating Results

In an effort to present a more comparative period on period analysis, we have adjusted net loss to remove the effects of non-recurring expenses from discontinued operations, non-cash share based compensation, goodwill impairment, debt extinguishment and debt restructuring.

The adjusted loss from continuing operations for the year 2014 was $6.9 million, or a loss of $0.19 per share, as compared to an adjusted loss from continuing operations of $19.4 million or a loss of $0.68 per share, for the year ended December 31, 2013. The adjusted loss from 2014 primarily related to general and administrative expenses (primarily salaries and professional fees) of $7.1 million, interest expense of $3.7 million and depreciation and amortization of $2.4 million. This was offset by a recovery of bad debts of $1.2 million (net) resulting primarily from the recovery of Russian receivables and advances previously reserved in 2013.

Net revenues for the year 2014 were $21.2 million, as compared to $18.7 for the year 2013. The increase in net revenues is substantially due to an increase of $4.6 million in transaction processing revenues offset by $2.1 million of reduced Russian mobile payment processing revenues as we restructured our Russian business with new management and its own proprietary billing system starting late 2013 and concluding in April 2014. Russian mobile payment revenues were $1.8 million for the year 2014 compared to $3.9 million for the year 2013. The transaction processing services business was acquired in April 2013 and the operating results for 2013 reflect 8.5 months of transaction processing services activity.

Our gross margin for the year 2014 was $5.3 million versus $5.4 million for the year 2013. While the dollar value of gross margin remained consistent year over year, the mix of business was different. For 2014 our transaction processing gross margin was $0.7 million higher than in 2013 and the mobile payments gross margin decreased by $0.8 million between 2013 and 2014. The change in margin mix reduced our overall gross margin from 29% of revenues to 25% of revenues as detailed below. The mobile payments gross margin for 2014 and 2013 was affected by penalties assessed in 2013 and successfully abated during 2014. Excluding $0.2 million in penalties, gross margin for mobile payments was 92% in 2014 and 73% in 2013. Mobile payment margins were higher in 2014 (as adjusted) due to changes in our pricing and business operations.

General and administrative expenses, excluding non-cash compensation expense, were $7.1 million for 2014 as compared to $11.6 million for 2013. This was primarily due to reductions of $1.1 million in salaries and benefits; $1.7 million in professional fees; $0.6 million in transaction gains and losses and $0.4 in other general and administrative expenses. The reduction in salaries and benefits is due to net headcount reductions; professional fees are lower due to higher legal fees from our reorganization in 2013 after the Company’s merger transaction with Unified Payments.

Net Element’s recovery from loan loss provision was $1.2 million for 2014 as compared to an expense provision of $7.6 million of expense for 2013, representing a decrease of $8.8 million year over year. The Company recorded a net recovery in provision for loan losses for 2014 which consisted of a favorable adjustment to the bad debt allowance of $1.6 million that was associated with Russian operations, offset by loss provision for net ACH rejects of $0.4 million in U.S. credit card processing business. We reported a $7.6 million loss provision for 2013 primarily due to receivables and advances from Russian aggregators that were deemed uncollectible.

Cash provided by operating activities of continuing operations was $2.3 million for 2014 compared to cash used in operating activities of $9.8 million for 2013. Positive operating cash flow for 2014 was primarily due to the $7.9 million reduction of accounts receivable and aggregator advances offset primarily by $1.3 million of increases in accounts payable and accrued expenses.

Cash used in investing activities for 2014 was $1.8 million primarily due to $1.0 million used to purchase merchant portfolios and the write off of $0.8 million in fixed assets resulting primarily from closure of our Ukraine development office. For 2013, $4.1 million of cash was provided by investing activities primarily resulting from $4.9 million in collections of notes receivable offset by approximately ($0.8) of acquisition related costs.

Total liabilities were $8.8 million at December 31, 2014 compared to $37.9 million at December 31, 2013. The Company’s total debt was $3.3 million at December 31, 2014 versus total debt and related party payables of $31.0 million at December 31, 2013, representing a reduction of $27.7 million. Net Element has significantly reduced its debt and related interest expense. On September 15, 2014, the Company completed a debt exchange program which eliminated $15.9 million in debt obligations. Pursuant to the terms of our convertible debt agreement, we converted $11.2 million of debt to equity upon obtaining a new $10 million credit facility. Additionally, Net Element’s factoring lines were $0 at December 31, 2014 as compared to $8.5 million at December 31, 2013. We were able to successfully finance our Russian mobile payment business with operating cash flow generated internally. Our factoring facilities allow TOT Money to assign to the bank certain (but not all) of its accounts receivable suitable to the lender(s) under such facilities as security for financing.  Accordingly, the amounts of our draws under such facilities from time to time will depend on the amounts of the accounts receivable suitable for such assignment as of the time we choose to draw under such facility.  We have not drawn any funds under such credit facilities during 2014.

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure

To supplement its consolidated financial statements presented in accordance with United Stated generally accepted accounting principles ("GAAP"), the Company provides additional measures of its operating results by disclosing its adjusted loss on a continuing operations basis and adjusted gross margin excluding penalties. Adjusted loss on a continuing operations basis is calculated as loss from continuing operations excluding discontinued operations, non-cash share based compensation, goodwill impairment, debt extinguishment and debt restructuring costs. Net Element discloses this amount on an aggregate and per share basis. Additionally, the Company is disclosing its mobile payments gross margin adjusted for penalties charged and recovered to analyze the trend of gross margin without penalties. These measures meet the definition of non-GAAP financial measures. The Company believes that application of these non-GAAP financial measures is appropriate to enhance the understanding of its historical performance through use of a metric that seeks to normalize period to period earnings and gross margin.

This press release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Pursuant to Regulation G, a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP for the twelve months ended December 31, 2014 and 2013 is presented in the following Non-GAAP Financial Measures Table.

Non-GAAP Financial Measures

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 access to credit will result in the ability to implement its strategic initiatives, whether the PayOnline transaction will be consummated and if so, will result in an advanced service offering, whether the Company’s Board has in fact been improved by the appointment of the 2 new Directors, whether any of the referenced 2015 initiatives will materialize, whether the Company’s plan to grow market share, accelerate sales and expand profitability will materialize, whether the growth in user base and the strategic emphasis on Small to Medium Enterprise (SME) result in competitive advantages for the Company that can be capitalized on, whether the financial reporting and adjustments calculated to present a more comparative period on period analysis achieve the stated objective, whether the application by the Company of non-GAAP financial measures is appropriate to enhance the understanding of its historical performance, 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 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.

Source: Net Element

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CONSOLIDATED BALANCE SHEETS

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

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CONSOLIDATED STATEMENTS OF CASH FLOWS