MEGAFON ATTRACTS INTERNATIONAL FUNDING FOR THE CAPITAL EXPENDITURE PROGRAMME

Moscow, Russian Federation (29October 2018) - Public Joint Stock Company "MegaFon" (MoEx: MFON), a pan-Russian operator of digital opportunities ("MegaFon" or the "Company"), announces that it has signed a Facility Agreement in the amount of EUR 150 million with ING Group covered by the guarantee of Finnvera, the Finnish export credit agency.

The new facility will be used to finance the purchase of fixed and wireless telecommunication equipment, software and related services from Nokia Solutions and Networks Oy (NSN), one of the world's leading providers of advanced mobile networks, and from its Russian subsidiary Nokia Solutions and Networks LLC. The amount drawn shall be amortized over a term of 8,5 years.

"The new Facility Agreement - it's the 10th jubilee deal covered by the guarantee of Finnvera. Its signing confirms the continued trust of international financial institutions in the credit quality of MegaFon and serves as another important stage in our long-standing and successful relationship with NSN, Finnvera and ING. The attractive terms of this financing will allow us to invest in the development of the network with even greater confidence and to continue to improve the quality of services for our subscribers," said Gevork Vermishyan, Executive Director of MegaFon.

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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.