This announcement is for information purposes only and does not constitute an offer to sell or an invitation to purchase securities in, or to persons from, the United States, the United Kingdom, the Russian Federation or elsewhere. Any such offer or invitation is made only by the documentation for the exchange bonds which has been duly registered by the Moscow Exchange and publicly disclosed in accordance with applicable laws and regulations.

Laws in certain jurisdictions may impose restrictions on the distribution of this announcement and persons who come into possession of this announcement or obtain other information given herein should familiarize themselves with any such restrictions and fully comply with them. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction.

MegaFon opens subscription for ruble bonds

Moscow, Russian Federation (25 January 2019) - Public Joint Stock Company "MegaFon" (MoEx: MFON), a pan-Russian operator of digital opportunities ("MegaFon" or the "Company"), announces the opening of the subscription book for its exchange bonds ("Ruble bonds").

Ruble bonds amounting to 20 billion rubles are being offered. The Ruble bonds will have a term of 3 years following placement. The coupon is expected to be in the range between 08.60% and 08.70% per annum, subject to final determination via the book building exercise. Proceeds from the Ruble bonds will be used for general corporate purposes.

The books are expected to close at 16:00 Moscow time today. Placement on the Moscow Exchange is expected to occur on or about04 February 2019.

Credit Bank of Moscow, Gazprombank, Otkritie Bank, Raiffeisenbank and Sberbank CIB are acting as the lead arrangers of the Ruble bonds issue. Gazprombank is acting as the placement agent.

The Ruble Bonds are offered under an exchange bonds programme admitted to trading on the Moscow Exchange on 20 April 2016, as earlier announced on the Company's website: http://corp.megafon.com/investors/news/capital_market_releases/20160422-1553.html

For more information:

PJSC MegaFon

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

Media: Artem Lebedev
Director for Corporate Communications Tel: +7 925 696 0677 artem.lebedev@megafon.ru

Notes to Editors
MegaFon PJSC is a leading Russian integrated telecommunication service provider, 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.

Statement Regarding Inside Information
Some of the information in this document may be inside information. The subject matter, the identity of the issuer, the identity of the persons making the notification and their titles, and the date and time of the notification are all as set forth above.