MegaFon announces a shareholder transaction resulting in no changes to its shareholding structure

Moscow, Russian Federation (29 October 2018) - Public Joint Stock Company "MegaFon" (MoEx: MFON), a pan-Russian operator of digital opportunities ("MegaFon" or the "Company"), announces that it has been notified of an intercompany transaction involving the ownership of the Company's the issued and outstanding ordinary shares, of RUB 0.1 nominal value per share, of MegaFon ("Ordinary Shares") and Regulation S and Rule 144A Global Depositary Receipts ("GDRs"), each representing one Ordinary Share ("Transaction"), by MegaFon Investments (Cyprus) Limited ("MICL"), MegaFon's wholly-owned subsidiary.

A total of 109,629,380 Ordinary Shares and 29,987,157 GDRs, representing accordingly 17.68% and 4.84% of MegaFon' share capital, were purchased by MegaFon Finance LLC, a wholly-owned subsidiary of MegaFon, registered and operating in accordance with the Russian law, from MICL.

As a result of the Transaction, the percentage interest in the Company held by MegaFon Finance LLC has increased from 0.00% to 22.52%. Accordingly, the percentage of the Company's Ordinary Shares and GDRs held by MICL has decreased from 22.52% to 0.00% of the Company's share capital.

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For More Information:

PJSC MegaFon

Investors: Dmitry Kononov Tel: + 7 926 200 6490 dkononov@megafon.ru
Director for Investor Relations and M&A

Notes to Editors

MegaFon PJSC is a pan-Russian operator of digital opportunities, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at: http://www.megafon.ru.

Cautionary Statement Regarding Forward Looking Statements

Some of the information in this document may contain or refer to projections or other forward-looking statements regarding future events or the future financial performance of the Company. 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. The Company wishes to caution you that these statements are only predictions, and are based upon various assumptions which are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. We may not achieve or accomplish these plans or predictions. The Company does not necessarily intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which the Company operates, as well as many other risks specifically related to the Company and its business and operations.