<p>
    MOSCOW and AMSTERDAM, Netherlands, July 30, 2015 (GLOBE NEWSWIRE) -- Yandex
    (NASDAQ:YNDX), one of
    Europe's largest internet companies and the leading search provider in Russia,
    today announced its unaudited financial results for the second quarter ended
    June&nbsp;30, 2015.</p>
<h2>Q2 2015 Financial Highlights(1)(2)
</h2>
<ul>
    <li>
        <strong>Revenues </strong>of RUB 13.9 billion ($250.7 million), up 14%
                                  compared with Q2 2014
    </li>
    <li>
        <strong>Ex-TAC revenues</strong> (excluding traffic acquisition costs) up
                                         15% compared with Q2 2014
    </li>
    <li>
        <strong>Income from operations </strong>of RUB 2.2 billion ($39.5 million),
                                                down 40% compared with Q2 2014
    </li>
    <li>
        <strong>Adjusted EBITDA </strong>of RUB 4.8 billion ($86.8 million), down 4%
                                         compared with Q2 2014
    </li>
    <li>
        <strong>Operating margin</strong> of 15.8%
    </li>
    <li>
        <strong>Adjusted EBITDA margin </strong>of 34.6%
    </li>
    <li>
        <strong>Adjusted</strong> <strong>ex-TAC EBITDA margin</strong> of 44.2%
    </li>
    <li>
        <strong>Net income</strong> of RUB 0.4 billion ($7.6 million), down 82%
                                    compared with Q2 2014
    </li>
    <li>
        <strong>Adjusted net income</strong> of RUB 2.8 billion ($50.3 million),
                                             down 16% compared with Q2 2014
    </li>
    <li>
        <strong>Net income margin</strong> of 3.0%
    </li>
    <li>
        <strong>Adjusted net income margin </strong>of 20.1%
    </li>
    <li>
        <strong>Adjusted</strong> <strong>ex-TAC net income margin</strong> of 25.6%
    </li>
    <li>
        <strong>Cash, cash equivalents and deposits </strong>of RUB 46.9 billion
                                                             ($845.1 million) as of
                                                             June&nbsp;30, 2015
    </li>
</ul>
<p id="ftn1">
    <sup>1 </sup>Pursuant to SEC rules regarding convenience translations, Russian
                 ruble (RUB) amounts have been translated into U.S. dollars at a
                 rate of RUB 55.5240 to $1.00, the official exchange rate quoted as
                 of June&nbsp;30, 2015 by the Central Bank of the Russian Federation.</p>
<p>
    <sup>2 </sup>The following measures presented in this release are "non-GAAP
                 financial measures": ex-TAC revenues; adjusted EBITDA; adjusted
                 EBITDA margin; adjusted ex-TAC EBITDA margin; adjusted net income;
                 adjusted net income margin and adjusted ex-TAC net income margin.
                 Please see the section headed "Use of Non-GAAP Financial Measures"
                 below for a discussion of how we define these measures, as well as
                 reconciliations at the end of this release of each of these
                 measures to the most directly comparable US GAAP measures.</p>
<p>
    "We grew our consolidated revenues 14% in a challenging economic environment,"
    said Arkady Volozh, Chief Executive Officer of Yandex. "The total number of
    advertising clients served during the quarter grew by 9% sequentially and 17%
    year-over-year, demonstrating that contextual advertising remains a highly
    effective marketing channel for businesses of every size. We remain focused on
    improving the quality of our search products, including mobile search, as well
    as our advertiser solutions. Later in Q3, we plan to introduce a new auction
    mechanism that we expect will increase the quality of traffic we drive to our
    advertising clients and facilitate the overall growth of online
    advertising."</p>
<p>
    The following table provides a summary of key financial results for the three
    months and six months ended June&nbsp;30, 2014 and 2015:</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Revenues
        </td>
        <td class="gnw_num_uline">
            12,158
        </td>
        <td class="gnw_num_uline">
            13,920
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
        <td class="gnw_num_uline">
            23,043
        </td>
        <td class="gnw_num_uline">
            26,259
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Ex-TAC revenues<sup>2</sup></td>
        <td class="gnw_num_uline">
            9,507
        </td>
        <td class="gnw_num_uline">
            10,898
        </td>
        <td class="gnw_num_uline">
            <em>15%</em></td>
        <td class="gnw_num_uline">
            17,824
        </td>
        <td class="gnw_num_uline">
            20,520
        </td>
        <td class="gnw_num_uline">
            <em>15%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Income from operations
        </td>
        <td class="gnw_num_uline">
            3,631
        </td>
        <td class="gnw_num_uline">
            2,196
        </td>
        <td class="gnw_num_uline">
            <em>-40%</em></td>
        <td class="gnw_num_uline">
            6,349
        </td>
        <td class="gnw_num_uline">
            3,682
        </td>
        <td class="gnw_num_uline">
            <em>-42%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Adjusted EBITDA<sup>2</sup></td>
        <td class="gnw_num_uline">
            5,027
        </td>
        <td class="gnw_num_uline">
            4,817
        </td>
        <td class="gnw_num_uline">
            <em>-4%</em></td>
        <td class="gnw_num_uline">
            9,069
        </td>
        <td class="gnw_num_uline">
            8,388
        </td>
        <td class="gnw_num_uline">
            <em>-8%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Net income
        </td>
        <td class="gnw_num_uline">
            2,396
        </td>
        <td class="gnw_num_uline">
            423
        </td>
        <td class="gnw_num_uline">
            <em>-82%</em></td>
        <td class="gnw_num_uline">
            5,076
        </td>
        <td class="gnw_num_uline">
            2,550
        </td>
        <td class="gnw_num_uline">
            <em>-50%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Adjusted net income<sup>2</sup></td>
        <td class="gnw_num_uline">
            3,318
        </td>
        <td class="gnw_num_uline">
            2,791
        </td>
        <td class="gnw_num_uline">
            <em>-16%</em></td>
        <td class="gnw_num_uline">
            5,870
        </td>
        <td class="gnw_num_uline">
            5,040
        </td>
        <td class="gnw_num_uline">
            <em>-14%</em></td>
    </tr>

</tbody>
</table>
<h2>Q2 2015 Operational Highlights</h2>
<ul>
    <li>
        <strong>Share of Russian search market</strong>&nbsp;(including mobile)
                                                       averaged 57.3% in Q2 2015
                                                       (according to LiveInternet)
    </li>
    <li>
        <strong>Search queries</strong>&nbsp;in Russia grew 2% compared to Q2 2014
    </li>
    <li>
        <strong>Number of advertisers</strong>&nbsp;grew to 351,000, up 17% from Q2
                                              2014 and up 9% from Q1 2015
    </li>
    <li>
        Launched <strong>Yandex.Radio</strong> music service supported by audio
        advertising
    </li>
</ul>
<p>
    <strong>Revenues</strong></p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Advertising revenues:
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i10">
            Text-based advertising
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i25">
            <em>Yandex websites</em></td>
        <td class="gnw_num_uline">
            8,559
        </td>
        <td class="gnw_num_uline">
            9,371
        </td>
        <td class="gnw_num_uline">
            <em>9%</em></td>
        <td class="gnw_num_uline">
            15,953
        </td>
        <td class="gnw_num_uline">
            17,815
        </td>
        <td class="gnw_num_uline">
            <em>12%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i25">
            <em>Ad network</em></td>
        <td class="gnw_num_uline">
            2,705
        </td>
        <td class="gnw_num_uline">
            3,342
        </td>
        <td class="gnw_num_uline">
            <em>24%</em></td>
        <td class="gnw_num_uline">
            5,368
        </td>
        <td class="gnw_num_uline">
            6,355
        </td>
        <td class="gnw_num_uline">
            <em>18%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i10">
            <em>Total text-based advertising</em></td>
        <td class="gnw_num_uline">
            11,264
        </td>
        <td class="gnw_num_uline">
            12,713
        </td>
        <td class="gnw_num_uline">
            <em>13%</em></td>
        <td class="gnw_num_uline">
            21,321
        </td>
        <td class="gnw_num_uline">
            24,170
        </td>
        <td class="gnw_num_uline">
            <em>13%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i10">
            Display advertising
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i25">
            <em>Yandex websites</em></td>
        <td class="gnw_num_uline">
            674
        </td>
        <td class="gnw_num_uline">
            739
        </td>
        <td class="gnw_num_uline">
            <em>10%</em></td>
        <td class="gnw_num_uline">
            1,321
        </td>
        <td class="gnw_num_uline">
            1,264
        </td>
        <td class="gnw_num_uline">
            <em>-4%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i25">
            <em>Ad network</em></td>
        <td class="gnw_num_uline">
            101
        </td>
        <td class="gnw_num_uline">
            109
        </td>
        <td class="gnw_num_uline">
            <em>8%</em></td>
        <td class="gnw_num_uline">
            177
        </td>
        <td class="gnw_num_uline">
            190
        </td>
        <td class="gnw_num_uline">
            <em>8%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline gnw_label_i10">
            <em>Total display advertising&nbsp;</em></td>
        <td class="gnw_num_uline">
            775
        </td>
        <td class="gnw_num_uline">
            848
        </td>
        <td class="gnw_num_uline">
            <em>9%</em></td>
        <td class="gnw_num_uline">
            1,498
        </td>
        <td class="gnw_num_uline">
            1,454
        </td>
        <td class="gnw_num_uline">
            <em>-3%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total advertising revenues
        </td>
        <td class="gnw_num_uline">
            12,039
        </td>
        <td class="gnw_num_uline">
            13,561
        </td>
        <td class="gnw_num_uline">
            <em>13%</em></td>
        <td class="gnw_num_uline">
            22,819
        </td>
        <td class="gnw_num_uline">
            25,624
        </td>
        <td class="gnw_num_uline">
            <em>12%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Other
        </td>
        <td class="gnw_num_uline">
            119
        </td>
        <td class="gnw_num_uline">
            359
        </td>
        <td class="gnw_num_uline">
            <em>202%</em></td>
        <td class="gnw_num_uline">
            224
        </td>
        <td class="gnw_num_uline">
            635
        </td>
        <td class="gnw_num_uline">
            <em>183%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total revenues
        </td>
        <td class="gnw_num_uline">
            12,158
        </td>
        <td class="gnw_num_uline">
            13,920
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
        <td class="gnw_num_uline">
            23,043
        </td>
        <td class="gnw_num_uline">
            26,259
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
    </tr>

</tbody>
</table>
<p>
    <strong>Text-based advertising revenues </strong>increased 13% compared with Q2
                                                     2014 and constituted 91% of our
                                                     total revenues.</p>
<p>
    <strong>Text-based advertising revenues from Yandex websites</strong> grew 9%
                                                                          compared
                                                                          with Q2
                                                                          2014 and
                                                                          accounted
                                                                          for 67% of
                                                                          our total
                                                                          revenues
                                                                          in Q2
                                                                          2015.</p>
<p>
    <strong>Text-based advertising revenues from our ad network</strong> increased
                                                                         24%
                                                                         compared
                                                                         with Q2
                                                                         2014 and
                                                                         contributed
                                                                         24% of
                                                                         total
                                                                         revenues
                                                                         during Q2
                                                                         2015, as we
                                                                         continued
                                                                         to add new
                                                                         partners to
                                                                         our ad
                                                                         network.
</p>
<p>
    <strong>Paid clicks</strong> on Yandex's and its partners' websites, in
                                 aggregate, increased 12% in Q2 2015 and our average
                                 cost per click in Q2 2015 was flat compared with Q2
                                 2014.</p>
<p>
    <strong>Display advertising revenue</strong> increased 9% compared to Q2 2014
                                                 and contributed 6% to our total
                                                 revenues. Year-on-year growth was
                                                 primarily driven by the low base
                                                 effect from Q2 2014.</p>
<p>
    <strong>Operating Costs and Expenses</strong></p>
<p>
    Yandex's operating costs and expenses consist of cost of revenues, product
    development expenses, sales, general and administrative expenses (SG&amp;A), and
    depreciation and amortization expenses (D&amp;A). Apart from D&amp;A, each of
    the above expense categories includes personnel-related costs and expenses,
    relevant office space rental, and related share-based compensation expense.
    Increases across all cost categories, excluding D&amp;A, reflect investments in
    overall growth, including personnel. In Q2 2015, Yandex reduced the number of
    its full-time employees compared to Q1 2015. The total number of full-time
    employees was 5,458 as of June&nbsp;30, 2015, an increase of 3% compared to June&nbsp;30,
    2014 and a decrease of 3% compared to March 31, 2015.</p>
<p>
    <strong>Costs of revenues, including traffic acquisition costs (TAC)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            TAC:
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Related to the Yandex ad network
        </td>
        <td class="gnw_num_uline">
            1,804
        </td>
        <td class="gnw_num_uline">
            2,113
        </td>
        <td class="gnw_num_uline">
            <em>17%</em></td>
        <td class="gnw_num_uline">
            3,593
        </td>
        <td class="gnw_num_uline">
            3,979
        </td>
        <td class="gnw_num_uline">
            <em>11%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Related to distribution partners
        </td>
        <td class="gnw_num_uline">
            847
        </td>
        <td class="gnw_num_uline">
            909
        </td>
        <td class="gnw_num_uline">
            <em>7%</em></td>
        <td class="gnw_num_uline">
            1,626
        </td>
        <td class="gnw_num_uline">
            1,760
        </td>
        <td class="gnw_num_uline">
            <em>8%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total TAC
        </td>
        <td class="gnw_num_uline">
            2,651
        </td>
        <td class="gnw_num_uline">
            3,022
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
        <td class="gnw_num_uline">
            5,219
        </td>
        <td class="gnw_num_uline">
            5,739
        </td>
        <td class="gnw_num_uline">
            <em>10%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Total TAC as a % of total revenues</em></td>
        <td class="gnw_num_uline">
            <em>21.8%</em></td>
        <td class="gnw_num_uline">
            <em>21.7%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>22.6%</em></td>
        <td class="gnw_num_uline">
            <em>21.9%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Other cost of revenues
        </td>
        <td class="gnw_num_uline">
            776
        </td>
        <td class="gnw_num_uline">
            960
        </td>
        <td class="gnw_num_uline">
            <em>24%</em></td>
        <td class="gnw_num_uline">
            1,540
        </td>
        <td class="gnw_num_uline">
            1,956
        </td>
        <td class="gnw_num_uline">
            <em>27%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Other cost of revenues as a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>6.4%</em></td>
        <td class="gnw_num_uline">
            <em>6.9%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>6.7%</em></td>
        <td class="gnw_num_uline">
            <em>7.4%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total cost of revenues
        </td>
        <td class="gnw_num_uline">
            3,427
        </td>
        <td class="gnw_num_uline">
            3,982
        </td>
        <td class="gnw_num_uline">
            <em>16%</em></td>
        <td class="gnw_num_uline">
            6,759
        </td>
        <td class="gnw_num_uline">
            7,695
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Total cost of revenues as a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>28.2%</em></td>
        <td class="gnw_num_uline">
            <em>28.6%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>29.3%</em></td>
        <td class="gnw_num_uline">
            <em>29.3%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>

</tbody>
</table>
<p>
    <strong>TAC</strong> grew 14% compared with Q2 2014 and slightly decreased as a
                         percentage of total revenues to 21.7% in Q2 2015. This is
                         compared with 21.8% in Q2 2014 and 22.0% in Q1 2015. Our
                         partner TAC grew 17%, slightly slower than revenues from
                         our advertising network mostly due to changes in our
                         partner revenue mix. Partner TAC includes traffic
                         acquisition costs related to both our text-based and our
                         display advertising networks.</p>
<p>
    <strong>Other cost of revenues</strong> in Q2 2015 increased 24% compared with
                                            Q2 2014, primarily reflecting an
                                            increase in rent expenses and personnel
                                            expenses. The increase in rent expenses
                                            is attributable to the material
                                            appreciation of the U.S. dollar in Q2
                                            2015 compared to Q2 2014, as the rent
                                            for our Moscow headquarters is U.S.
                                            dollar-denominated. A portion of this
                                            increase also reflects the additional
                                            space that we leased for our Moscow
                                            headquarters in May 2014.</p>
<p>
    <strong>Product development</strong></p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Product development
        </td>
        <td class="gnw_num_uline">
            2,079
        </td>
        <td class="gnw_num_uline">
            3,300
        </td>
        <td class="gnw_num_uline">
            <em>59%</em></td>
        <td class="gnw_num_uline">
            4,083
        </td>
        <td class="gnw_num_uline">
            6,647
        </td>
        <td class="gnw_num_uline">
            <em>63%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>As a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>17.1%</em></td>
        <td class="gnw_num_uline">
            <em>23.7%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>17.7%</em></td>
        <td class="gnw_num_uline">
            <em>25.3%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>

</tbody>
</table>
<p>
    Growth in <strong>product development expenses</strong> in Q2 2015 primarily
    reflects growth of personnel expenses mainly related to salary increases
    effective in early 2015 as well as increases in our rent expenses described
    above. Our development headcount increased 5% from 3,106 as of June&nbsp;30, 2014, to
    3,272 as of June&nbsp;30, 2015, with a net decrease of 118 employees compared to
    March 31, 2015.</p>
<p>
    <strong>Selling, general and administrative (SG&amp;A)</strong></p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Sales, general and administrative
        </td>
        <td class="gnw_num_uline">
            1,907
        </td>
        <td class="gnw_num_uline">
            2,568
        </td>
        <td class="gnw_num_uline">
            <em>35%</em></td>
        <td class="gnw_num_uline">
            3,669
        </td>
        <td class="gnw_num_uline">
            4,871
        </td>
        <td class="gnw_num_uline">
            <em>33%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>As a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>15.7%</em></td>
        <td class="gnw_num_uline">
            <em>18.4%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>15.9%</em></td>
        <td class="gnw_num_uline">
            <em>18.5%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>

</tbody>
</table>
<p>
    SG&amp;A costs grew 35% compared with Q2 2014. The growth was primarily driven
    by an increase in rent expenses for our Moscow headquarters related to the SG&amp;A
    category as well as by additional advertising and marketing expenses.</p>
<p>
    <strong>Share-based compensation (SBC) expense </strong></p>
<p>
    SBC expense is included in each of the cost of revenues, product development and
    SG&amp;A categories discussed above.</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            SBC expense included in cost of revenues
        </td>
        <td class="gnw_num_uline">
            23
        </td>
        <td class="gnw_num_uline">
            41
        </td>
        <td class="gnw_num_uline">
            <em>78%</em></td>
        <td class="gnw_num_uline">
            42
        </td>
        <td class="gnw_num_uline">
            84
        </td>
        <td class="gnw_num_uline">
            <em>100%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            SBC expense included in product development
        </td>
        <td class="gnw_num_uline">
            165
        </td>
        <td class="gnw_num_uline">
            395
        </td>
        <td class="gnw_num_uline">
            <em>139%</em></td>
        <td class="gnw_num_uline">
            335
        </td>
        <td class="gnw_num_uline">
            774
        </td>
        <td class="gnw_num_uline">
            <em>131%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            SBC expense included in SG&amp;A
        </td>
        <td class="gnw_num_uline">
            87
        </td>
        <td class="gnw_num_uline">
            158
        </td>
        <td class="gnw_num_uline">
            <em>82%</em></td>
        <td class="gnw_num_uline">
            153
        </td>
        <td class="gnw_num_uline">
            296
        </td>
        <td class="gnw_num_uline">
            <em>93%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total SBC expense
        </td>
        <td class="gnw_num_uline">
            275
        </td>
        <td class="gnw_num_uline">
            594
        </td>
        <td class="gnw_num_uline">
            <em>116%</em></td>
        <td class="gnw_num_uline">
            530
        </td>
        <td class="gnw_num_uline">
            1,154
        </td>
        <td class="gnw_num_uline">
            <em>118%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>As a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>2.3%</em></td>
        <td class="gnw_num_uline">
            <em>4.3%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>2.3%</em></td>
        <td class="gnw_num_uline">
            <em>4.4%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>

</tbody>
</table>
<p>
    Total SBC expense increased 116% in Q2 2015 compared with Q2 2014. The increase
    is related to the material appreciation of the U.S. dollar in Q2 2015 versus Q2
    2014, to new equity-based grants made in 2014 and 2015, as well as to the
    SAR-for-RSU exchange program executed in Q2 2015 described below.</p>
<p>
    <strong>Depreciation and amortization (D&amp;A) expense</strong></p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">

<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Depreciation and amortization
        </td>
        <td class="gnw_num_uline">
            1,114
        </td>
        <td class="gnw_num_uline">
            1,874
        </td>
        <td class="gnw_num_uline">
            <em>68%</em></td>
        <td class="gnw_num_uline">
            2,183
        </td>
        <td class="gnw_num_uline">
            3,364
        </td>
        <td class="gnw_num_uline">
            <em>54%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>As a % of revenues</em></td>
        <td class="gnw_num_uline">
            <em>9.2%</em></td>
        <td class="gnw_num_uline">
            <em>13.5%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
        <td class="gnw_num_uline">
            <em>9.5%</em></td>
        <td class="gnw_num_uline">
            <em>12.8%</em></td>
        <td class="gnw_label_uline">
            <em>&nbsp;</em></td>
    </tr>

</tbody>
</table>
<p>
    D&amp;A expense increased 68% in Q2 2015 compared with Q2 2014, reflecting
    investments in servers and data centers made in 2014 and the first half of 2015,
    as well as the material appreciation of the U.S. dollar and Euro in Q2 2015
    compared with Q2 2014.</p>
<p>
    As a result of the factors described above,<strong> income from
                                                        operations</strong> was RUB
    2.2 billion ($39.5 million) in Q2 2015, a 40% decline from Q2 2014, while
    <strong>adjusted EBITDA</strong> was RUB 4.8 billion ($86.8 million) in Q2 2015,
    down 4% from Q2 2014.</p>
<p>
    <strong>Interest income, net</strong> in Q2 2015 was RUB 356 million, up from
                                          RUB 203 million in Q2 2014. The
                                          significant growth is due to increased
                                          interest rates on our short-term deposits
                                          partly offset by an increase in interest
                                          expense on our U.S. dollar denominated
                                          1.125% convertible senior notes following
                                          the material appreciation of the U.S.
                                          dollar.</p>
<p>
    <strong>Foreign exchange loss</strong> in Q2 2015 was RUB 1,869 billion,
                                           compared with a foreign exchange loss of
                                           RUB 625 million in Q2 2014. This loss is
                                           due to the depreciation of the U.S.
                                           dollar during Q2 2015 from RUB 58.4643 to
                                           $1.00 on March 31, 2015, to RUB 55.5240
                                           to $1.00 on June&nbsp;30, 2015. Yandex's
                                           Russian operating subsidiaries'
                                           functional currency is the Russian ruble,
                                           and therefore changes due to exchange
                                           rate fluctuations in the ruble value of
                                           these subsidiaries' monetary assets and
                                           liabilities that are denominated in other
                                           currencies are recognized as foreign
                                           exchange gains or losses in the income
                                           statement. Although the U.S. dollar value
                                           of Yandex's U.S. dollar-denominated
                                           assets and liabilities was not impacted
                                           by these currency fluctuations, they
                                           resulted in a downward revaluation of the
                                           ruble equivalent of these U.S.
                                           dollar-denominated monetary assets and
                                           liabilities in Q2 2015.<strong><br>
    <br>
    Income tax expense </strong>for Q2 2015 was RUB 342 million, down from RUB 821
                                           million in Q2 2014. Our effective tax
                                           rate of 44.7% in Q2 2015 was
                                           significantly higher due to the increased
                                           effect of non-deductible SBC expense and
                                           valuation allowances on our consolidated
                                           effective tax rate following the decrease
                                           of net income before taxes of our
                                           principal Russian operating subsidiary.
</p>
<p>
    <strong>Adjusted net income </strong>in Q2 2015 was RUB 2.8 billion ($50.3
                                         million), a 16% decrease from Q2 2014.</p>
<p>
    <strong>Adjusted net income margin</strong> was 20.1% in Q2 2015. This is
                                                compared with adjusted net income
                                                margin of 18.2% in Q1 2015 and 27.3%
                                                in Q2 2014.</p>
<p>
    <strong>Net income</strong> was RUB 423 million ($7.6 million) in Q2 2015, down
                                82% compared with Q2 2014.</p>
<p>
    As of June&nbsp;30, 2015, Yandex had<strong> cash, cash equivalents and long-term
                                            deposits </strong>of RUB 46.9 billion
    ($845.1 million).</p>
<p>
    <strong>Net operating cash flow and capital expenditures</strong> for Q2 2015
                                                                      were RUB 6.4
                                                                      billion
                                                                      ($115.0
                                                                      million) and
                                                                      RUB 4.0
                                                                      billion ($72.5
                                                                      million),
                                                                      respectively.
</p>
<p>
    During Q2 2015, we repurchased $24.3 million in aggregate principal amount of
    our <strong>1.125% convertible senior notes</strong> <strong>due 2018</strong>
    for approximately $21.4 million.</p>
<p>
    The <strong>total</strong> <strong>number of shares issued and
                                       outstanding</strong> as of June&nbsp;30, 2015 was
    318,651,572, including 263,755,966 Class A shares, 54,895,605 Class B shares,
    and one Priority share and excluding 11,405,182 Class A shares held in treasury
    and all Class C shares outstanding solely as a result of the conversion of Class
    B shares into Class A shares; all such Class C shares will be cancelled. There
    were also employee share options outstanding to purchase up to an additional 4.2
    million shares, at a weighted average exercise price of $5.93 per share, of
    which options to purchase 4.2 million shares were fully vested; equity-settled
    share appreciation rights (SARs) equal to 0.5 million shares, at a weighted
    average measurement price of $28.21, 0.3 million of which were fully vested; and
    restricted share units (RSUs) covering&nbsp;6.5 million shares, of which RSUs to
    acquire 1.4 million shares were fully vested.</p>
<p>
    In April 2015, we offered 14 employees an opportunity to exchange their
    outstanding SAR awards for new RSU awards, based on an exchange ratio of 2:1.
    The vesting of the replacement RSU awards was extended by 12 months beyond the
    original vesting schedule of the exchanged SAR awards. In addition, no exercise
    of the replacement RSUs will be permitted until April 10, 2016. A total of 14
    employees, including certain senior employees, exchanged an aggregate of
    1,663,750 SARs for an aggregate of 831,875 RSUs.</p>
<p>
    Also, in June 2015, we offered 51 additional non-senior employees an opportunity
    to exchange their outstanding SAR awards for new RSU awards, based on an
    exchange ratio of 2:1. The replacement RSUs were subject to the same vesting
    schedule as the existing SARs. A total of 41 employees exchanged an aggregate of
    106,850 SARs for an aggregate of 53,426 RSUs. Such exchange was completed in
    July 2015, and is not reflected in the outstanding equity award numbers as of
    June&nbsp;30, 2015 set out above.</p>
<h2>Outlook for 2015</h2>
<p>
    Currently we expect our revenue to grow in the range of 11% to 13% in 2015
    compared with 2014.</p>
<h2>Conference Call Information</h2>
<p>
    Yandex's management will hold an earnings conference call on July 30, 2015 at
    8:00 AM U.S. Eastern Time (3:00 PM Moscow time; 1:00 PM London time).</p>
<p>
    To access the conference call live, please dial:</p>
<blockquote>
    <p>
        US: +1 877 280 1254 <br>
        UK: +44(0)20 3427 1917 <br>
        Russia: 8 800 500 9312 <br>
        <br>
        Passcode: 3013180</p>
</blockquote>
<p>
    A replay of the call will be available through August 5, 2015. To access the
    replay, please dial:</p>
<blockquote>
    <p>
        US: +1 866 932 5017,<br>
        UK/International: +44(0)20 3427 0598,<br>
        Russia: 8 800 2870 1012<br>
        <br>
        Passcode: 3013180</p>
</blockquote>
<p>
    A live and archived webcast of this conference call will be available at
    <a href="http://globenewswire.com/Tracker?data=IUitG50EwyBTtm0x3QHjr_-ywBUtelICIe1XVml_u0mNJHtZ2naJkYNPd5jMBGqZeMXbMOaTRdSBKifRkxh7U7PQuXsfwZjU61Nwg_lRTNC-sOl2cIU0LzeKsN27q-ed" rel="nofollow" title="">http://edge.media-server.com/m/p/skif4ibb</a>
</p>
<h2>ABOUT YANDEX</h2>
<p>
    Yandex (Nasdaq:YNDX) is
    one of the largest European internet companies, providing a wide variety of
    search and other online services. Yandex's mission is to help users solve their
    everyday problems by building people-centric products and services. Based on
    innovative technologies, the company provides the most relevant, locally
    tailored experience on all digital platforms and devices. Yandex operates
    Russia's most popular search engine and also serves Ukraine, Belarus, Kazakhstan
    and Turkey.</p>
<p>
    More information on Yandex can be found at
    <a href="https://yandex.com/company" rel="nofollow" title="">https://yandex.com/company</a>.
</p>
<h2>FORWARD-LOOKING STATEMENTS </h2>
<p>
    This press release contains forward-looking statements that involve risks and
    uncertainties. These include statements regarding our anticipated revenues for
    2015. Actual results may differ materially from the results predicted or implied
    by such statements, and our reported results should not be considered as an
    indication of future performance. The potential risks and uncertainties that
    could cause actual results to differ from the results predicted or implied by
    such statements include, among others, macroeconomic and geopolitical
    developments affecting the Russian economy, fluctuations in the value of the
    Russian ruble, competitive pressures, changes in advertising patterns, changes
    in user preferences, changes in the political, legal and/or regulatory
    environment, technological developments, and our need to expend capital to
    accommodate the growth of the business, as well as those risks and uncertainties
    included under the captions "Risk Factors" and "Operating and Financial Review
    and Prospects" in our Annual Report on Form 20-F for the year ended December&nbsp;31,
    2014, which is on file with the Securities and Exchange Commission and is
    available on our investor relations website at
    <a href="http://globenewswire.com/Tracker?data=IUitG50EwyBTtm0x3QHjrxSN2QL6sG20jUK2iJCX98IzVoEVDMMjMJ_ktnsg9R41xXXFRJQEqJhA2v9H-wlyKRE5tec9FemaUtEUo_iWr8w%3D" rel="nofollow" title="">http://ir.yandex.com/sec.cfm</a>
    and on the SEC website at
    <a href="http://globenewswire.com/Tracker?data=6VV8iF2H-uXqS6V_LehQZnyVtwAzfQpCIdoKpa8UFGs4zvEX0jThGPPKdP8hTabB" rel="nofollow" title="www.sec.gov">www.sec.gov</a>.
    All information in this release and in the attachments is as of July 30, 2015,
    and Yandex undertakes no duty to update this information unless required by law.
</p>
<h2>USE OF NON-GAAP FINANCIAL MEASURES</h2>
<p>
    To supplement our consolidated financial statements, which are prepared and
    presented in accordance with US GAAP, we present the following non-GAAP
    financial measures: ex-TAC revenue, adjusted EBITDA, adjusted EBITDA margin,
    adjusted ex-TAC EBITDA margin, adjusted net income, adjusted net income margin
    and adjusted ex-TAC net income margin. The presentation of these financial
    measures is not intended to be considered in isolation or as a substitute for,
    or superior to, the financial information prepared and presented in accordance
    with US GAAP. For more information on these non-GAAP financial measures, please
    see the tables captioned "Reconciliations of non-GAAP financial measures to the
    nearest comparable US GAAP measures", included following the accompanying
    financial tables. We define the various non-GAAP financial measures we use as
    follows:</p>
<ul>
    <li>
        <strong>Ex-TAC revenue </strong>means US GAAP revenues less total traffic
                                        acquisition costs (TAC)
    </li>
    <li>
        <strong>Adjusted EBITDA </strong>means net income <u>plus</u> (1)
                                         depreciation and amortization, (2)
                                         share-based compensation expense, (3)
                                         accrual of expense related to the
                                         contingent compensation that was payable to
                                         employees in connection with certain
                                         business combinations and (4) provision for
                                         income taxes, <u>less</u> (A) interest
                                         income and (B) other income/(expense)
    </li>
    <li>
        <strong>Adjusted EBITDA margin</strong> means adjusted EBITDA divided by US
                                                GAAP revenues
    </li>
    <li>
        <strong>Adjusted ex-TAC EBITDA margin</strong> means adjusted EBITDA divided
                                                       by ex-TAC revenues
    </li>
    <li>
        <strong>Adjusted net income</strong> means US GAAP net income <u>plus</u>
                                             (1) SBC expense adjusted for the income
                                             tax reduction attributable to SBC
                                             expense, (2) accrual of expense related
                                             to the contingent compensation that was
                                             payable to certain employees in
                                             connection with certain business
                                             combinations, (3) foreign exchange
                                             losses (less foreign exchange gains)
                                             adjusted for the (reduction) increase
                                             in income tax attributable to the
                                             foreign exchange losses / (gains) and
                                             (4) amortization of debt discount
                                             related to our convertible debt
                                             adjusted for the related reduction in
                                             income tax; <u>less</u> gain from
                                             repurchases of our convertible notes
                                             adjusted for the related increase in
                                             income tax
    </li>
    <li>
        <strong>Adjusted net income margin </strong>means adjusted net income
                                                    divided by US GAAP revenues
    </li>
    <li>
        <strong>Adjusted ex-TAC net income margin </strong>means adjusted net income
                                                           divided by ex-TAC
                                                           revenues
    </li>
</ul>
<p>
    These non-GAAP financial measures are used by management for evaluating
    financial performance as well as decision-making. Management believes that these
    metrics reflect the organic, core operating performance of the company, and
    therefore are useful to analysts and investors in providing supplemental
    information that helps them understand, model and forecast the evolution of our
    operating business.</p>
<p>
    Although our management uses these non-GAAP financial measures for operational
    decision making and considers these financial measures to be useful for analysts
    and investors, we recognize that there are a number of limitations related to
    such measures. In particular, it should be noted that several of these measures
    exclude some costs, particularly share-based compensation, that are recurring.
    In addition, the components of the costs that we exclude in our calculation of
    the measures described above may differ from the components that our peer
    companies exclude when they report their results of operations.</p>
<p>
    Below we describe why we make particular adjustments to certain US GAAP
    financial measures:</p>
<p>
    <i>TAC</i></p>
<p>
    We believe that it may be useful for investors and analysts to review certain
    measures both in accordance with US GAAP and net of the effect of TAC, which we
    view as comparable to sales commissions but, unlike sales commissions, are not
    deducted from US GAAP revenues. By presenting revenue, adjusted EBITDA margin
    and adjusted net income margin net of TAC, we believe that investors and
    analysts are able to obtain a clearer picture of our business without the impact
    of the revenues we share with our partners.</p>
<p>
    <i>SBC</i></p>
<p>
    SBC is a significant expense item, and an important part of our compensation and
    incentive programs. As it is a non-cash charge, however, and highly dependent on
    our share price at the time of equity award grants, we believe that it is useful
    for investors and analysts to see certain financial measures excluding the
    impact of these charges in order to obtain a clear picture of our operating
    performance.</p>
<p>
    <i>Acquisition-related costs</i></p>
<p>
    We may incur expenses in connection with acquisitions that are not indicative of
    our recurring core operating performance. In particular, we are required under
    US GAAP to accrue as expense the contingent compensation that is payable to
    certain employees in connection with certain business combinations. We eliminate
    these acquisition-related expenses from adjusted EBITDA and adjusted net income
    to provide management and investors a tool for comparing on a period-to-period
    basis our operating performance in the ordinary course of operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p>
    <i>Foreign exchange gains and losses</i></p>
<p>
    Because we hold significant assets in currencies other than our Russian ruble
    operating currency, and because foreign exchange fluctuations are outside of our
    operational control, we believe that it is useful to present adjusted net income
    and related margin measures excluding these effects, in order to provide greater
    clarity regarding our operating performance.</p>
<p>
    <i>Amortization of debt discount</i></p>
<p>
    We also adjust net income for interest expense representing amortization of the
    debt discount related to our convertible notes issued in Q4 2013 and Q1 2014. We
    have eliminated this expense from adjusted net income as it is non-cash in
    nature and is not indicative of our ongoing operating performance.</p>
<p>
    <i>Gain from repurchases of convertible debt</i></p>
<p>
    Adjusted net income also excludes a gain from the repurchase of $24.3 million in
    principal amount of our 1.125% convertible senior notes due 2018 for
    approximately $21.4 million that we recorded in the quarter ended June&nbsp;30, 2015.
    We have eliminated this gain from adjusted net income as it is not indicative of
    our ongoing operating performance.</p>
<p>
    The tables at the end of this release provide detailed reconciliations of each
    non-GAAP financial measure we use to the most directly comparable US GAAP
    financial measure.</p>
<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br><br>
    <strong>Unaudited Condensed Consolidated Balance Sheets</strong>
    <br><br>
    <strong>(in millions of Russian rubles and U.S. dollars, except share
                                                            and per share data)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_long_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline" colspan="3" rowspan="1">
            <strong>As of</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead">
            <strong>December&nbsp;31,</strong></td>
        <td class="gnw_colhead">
            <strong>June&nbsp;30,</strong></td>
        <td class="gnw_colhead">
            <strong>June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014*</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>$</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>ASSETS</strong></td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Current assets:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Cash and cash equivalents
        </td>
        <td class="gnw_num">
            &nbsp;17,645
        </td>
        <td class="gnw_num">
            &nbsp;9,430
        </td>
        <td class="gnw_num">
            &nbsp;169.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Term deposits
        </td>
        <td class="gnw_num">
            &nbsp;5,863
        </td>
        <td class="gnw_num">
            &nbsp;23,004
        </td>
        <td class="gnw_num">
            &nbsp;414.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in debt securities
        </td>
        <td class="gnw_num">
            &nbsp;3,124
        </td>
        <td class="gnw_num">
            &nbsp;556
        </td>
        <td class="gnw_num">
            &nbsp;10.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts receivable, net
        </td>
        <td class="gnw_num">
            &nbsp;3,703
        </td>
        <td class="gnw_num">
            &nbsp;&nbsp;4,502
        </td>
        <td class="gnw_num">
            &nbsp;81.1
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Prepaid expenses
        </td>
        <td class="gnw_num">
            &nbsp;1,556
        </td>
        <td class="gnw_num">
            &nbsp;1,305
        </td>
        <td class="gnw_num">
            &nbsp;23.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred tax assets
        </td>
        <td class="gnw_num">
            &nbsp;180
        </td>
        <td class="gnw_num">
            &nbsp;152
        </td>
        <td class="gnw_num">
            &nbsp;2.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Other current assets
        </td>
        <td class="gnw_num_uline">
            &nbsp;3,736
        </td>
        <td class="gnw_num_uline">
            &nbsp;4,180
        </td>
        <td class="gnw_num_uline">
            &nbsp;75.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Total current assets
        </td>
        <td class="gnw_num">
            &nbsp;35,807
        </td>
        <td class="gnw_num">
            &nbsp;43,129
        </td>
        <td class="gnw_num">
            &nbsp;776.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Property and equipment, net
        </td>
        <td class="gnw_num">
            &nbsp;17,107
        </td>
        <td class="gnw_num">
            &nbsp;21,693
        </td>
        <td class="gnw_num">
            &nbsp;390.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Intangible assets, net
        </td>
        <td class="gnw_num">
            &nbsp;2,425
        </td>
        <td class="gnw_num">
            &nbsp;2,244
        </td>
        <td class="gnw_num">
            &nbsp;40.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Goodwill
        </td>
        <td class="gnw_num">
            &nbsp;8,920
        </td>
        <td class="gnw_num">
            &nbsp;9,131
        </td>
        <td class="gnw_num">
            &nbsp;164.5
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Long-term prepaid expenses
        </td>
        <td class="gnw_num">
            &nbsp;1,590
        </td>
        <td class="gnw_num">
            &nbsp;1,471
        </td>
        <td class="gnw_num">
            &nbsp;26.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Restricted cash
        </td>
        <td class="gnw_num">
            &nbsp;932
        </td>
        <td class="gnw_num">
            &nbsp;412
        </td>
        <td class="gnw_num">
            &nbsp;7.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Term deposits
        </td>
        <td class="gnw_num">
            &nbsp;25,663
        </td>
        <td class="gnw_num">
            &nbsp;14,493
        </td>
        <td class="gnw_num">
            &nbsp;261.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in non-marketable equity securities
        </td>
        <td class="gnw_num">
            &nbsp;871
        </td>
        <td class="gnw_num">
            &nbsp;958
        </td>
        <td class="gnw_num">
            &nbsp;17.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Other non-current assets
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,609
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,351
        </td>
        <td class="gnw_num_uline">
            &nbsp;24.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>TOTAL ASSETS </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;94,924 </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;94,882 </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;1,708.8 </strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>LIABILITIES AND SHAREHOLDERS' EQUITY</strong></td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Current liabilities:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts payable and accrued liabilities
        </td>
        <td class="gnw_num">
            &nbsp;5,058
        </td>
        <td class="gnw_num">
            &nbsp;6,214
        </td>
        <td class="gnw_num">
            &nbsp;111.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Taxes payable
        </td>
        <td class="gnw_num">
            &nbsp;2,930
        </td>
        <td class="gnw_num">
            &nbsp;1,426
        </td>
        <td class="gnw_num">
            &nbsp;&nbsp;25.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred revenue
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,808
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,738
        </td>
        <td class="gnw_num_uline">
            &nbsp;31.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Total current liabilities
        </td>
        <td class="gnw_num">
            &nbsp;9,796
        </td>
        <td class="gnw_num">
            &nbsp;9,378
        </td>
        <td class="gnw_num">
            &nbsp;168.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Convertible debt
        </td>
        <td class="gnw_num">
            &nbsp;&nbsp;26,325
        </td>
        <td class="gnw_num">
            &nbsp;23,895
        </td>
        <td class="gnw_num">
            &nbsp;430.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred tax liabilities
        </td>
        <td class="gnw_num">
            &nbsp;1,587
        </td>
        <td class="gnw_num">
            &nbsp;1,343
        </td>
        <td class="gnw_num">
            &nbsp;24.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Other accrued liabilities
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,480
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,100
        </td>
        <td class="gnw_num_uline">
            &nbsp;19.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Total liabilities
        </td>
        <td class="gnw_num">
            &nbsp;39,188
        </td>
        <td class="gnw_num">
            &nbsp;35,716
        </td>
        <td class="gnw_num">
            &nbsp;643.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Commitments and contingencies
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Shareholders' equity:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Priority share: €1.00 par value; 1 share authorized, issued and
            outstanding
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Preference shares: €0.01 par value; 1,000,000,001 shares authorized, nil
            shares issued and outstanding
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
        <td class="gnw_num">
            &nbsp;—
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Ordinary shares: par value (Class A €0.01, Class B €0.10 and Class C
            €0.09); shares authorized (Class A: 1,000,000,000, Class B: 71,870,411
            and 61,295,523, and Class C: 71,870,411 and 61,295,523); shares issued
            (Class A: 267,970,405 and 275,161,148, Class B: 62,051,348 and
            54,895,605, and Class C: 8,919,063 and 16,109,806, respectively); shares
            outstanding (Class A: 255,592,322 and 263,755,966, Class B: 62,051,348
            and 54,895,605, and Class C: nil)
        </td>
        <td class="gnw_num">
            &nbsp;182&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;140 &nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;&nbsp;2.5&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Treasury shares at cost (Class A: 12,378,083 and 11,405,182)
        </td>
        <td class="gnw_num">
            &nbsp;(14,179)
        </td>
        <td class="gnw_num">
            &nbsp;(13,183)
        </td>
        <td class="gnw_num">
            &nbsp;(237.4)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Additional paid-in capital
        </td>
        <td class="gnw_num">
            &nbsp;16,192
        </td>
        <td class="gnw_num">
            &nbsp;16,252
        </td>
        <td class="gnw_num">
            &nbsp;292.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accumulated other comprehensive income
        </td>
        <td class="gnw_num">
            &nbsp;1,023
        </td>
        <td class="gnw_num">
            &nbsp;889
        </td>
        <td class="gnw_num">
            &nbsp;16.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Retained earnings
        </td>
        <td class="gnw_num_uline">
            &nbsp;&nbsp;52,518
        </td>
        <td class="gnw_num_uline">
            &nbsp;55,068
        </td>
        <td class="gnw_num_uline">
            &nbsp;991.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Total shareholders' equity
        </td>
        <td class="gnw_num_uline">
            &nbsp;55,736
        </td>
        <td class="gnw_num_uline">
            &nbsp;59,166
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,065.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;94,924 </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;&nbsp;94,882 </strong></td>
        <td class="gnw_num_dline">
            <strong>&nbsp;1,708.8 </strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;_________________________
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            * Derived from audited financial statements
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>

</tbody>
</table>
<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br><br>
    <strong>Unaudited</strong> <strong>Condensed Consolidated Statements of
                                                                                       Income</strong>
    <br><br>
    <strong>(in millions of Russian rubles and U.S. dollars, except share
                                                            and per share data)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_long_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline" colspan="3">
            <strong>Three months ended June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>$</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Revenues
        </td>
        <td class="gnw_num">
            12,158
        </td>
        <td class="gnw_num">
            13,920
        </td>
        <td class="gnw_num">
            250.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Operating costs and expenses:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Cost of revenues<sup>(1)</sup></td>
        <td class="gnw_num">
            3,427
        </td>
        <td class="gnw_num">
            3,982
        </td>
        <td class="gnw_num">
            71.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Product development<sup>(1)</sup></td>
        <td class="gnw_num">
            2,079
        </td>
        <td class="gnw_num">
            3,300
        </td>
        <td class="gnw_num">
            59.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Sales, general and administrative<sup>(1)</sup></td>
        <td class="gnw_num">
            1,907
        </td>
        <td class="gnw_num">
            2,568
        </td>
        <td class="gnw_num">
            46.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Depreciation and amortization&nbsp;
        </td>
        <td class="gnw_num_uline">
            1,114
        </td>
        <td class="gnw_num_uline">
            1,874
        </td>
        <td class="gnw_num_uline">
            33.8
        </td>
    </tr>
    <tr>
        <td class="_i10 gnw_label_i25">
            Total operating costs and expenses
        </td>
        <td class="gnw_num_uline">
            8,527
        </td>
        <td class="gnw_num_uline">
            11,724
        </td>
        <td class="gnw_num_uline">
            211.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Income from operations
        </td>
        <td class="gnw_num">
            3,631
        </td>
        <td class="gnw_num">
            2,196
        </td>
        <td class="gnw_num">
            39.5
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Interest income, net
        </td>
        <td class="gnw_num">
            203
        </td>
        <td class="gnw_num">
            356
        </td>
        <td class="gnw_num">
            6.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Other loss, net
        </td>
        <td class="gnw_num_uline">
            &nbsp;(617)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(1,787)
        </td>
        <td class="gnw_num_uline">
            (32.1)
        </td>
    </tr>
    <tr>
        <td class="_i10 gnw_label_i25">
            Net income before income taxes
        </td>
        <td class="gnw_num">
            3,217
        </td>
        <td class="gnw_num">
            765
        </td>
        <td class="gnw_num">
            13.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Provision for income taxes
        </td>
        <td class="gnw_num_uline">
            821
        </td>
        <td class="gnw_num_uline">
            342
        </td>
        <td class="gnw_num_uline">
            6.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Net income
        </td>
        <td class="gnw_num_dline">
            2,396
        </td>
        <td class="gnw_num_dline">
            423
        </td>
        <td class="gnw_num_dline">
            7.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Net income per Class&nbsp;A and Class&nbsp;B share:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Basic
        </td>
        <td class="gnw_num_dline">
            7.51
        </td>
        <td class="gnw_num_dline">
            1.33
        </td>
        <td class="gnw_num_dline">
            0.02
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Diluted
        </td>
        <td class="gnw_num_dline">
            7.37
        </td>
        <td class="gnw_num_dline">
            1.31
        </td>
        <td class="gnw_num_dline">
            0.02
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Weighted average number of Class A and Class B shares outstanding
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Basic
        </td>
        <td class="gnw_num">
            319,072,616
        </td>
        <td class="gnw_num">
            318,514,686
        </td>
        <td class="gnw_num">
            318,514,686
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Diluted
        </td>
        <td class="gnw_num">
            325,231,096
        </td>
        <td class="gnw_num">
            323,533,386
        </td>
        <td class="gnw_num">
            323,533,386
        </td>
    </tr>
    <tr>
        <td class="gnw_colhead_uline" colspan="4">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label" colspan="4">
            <sup>(1)</sup>These balances exclude depreciation and amortization
                          expenses, which are presented separately, and include
                          share‑based compensation expenses of:
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Cost of revenues
        </td>
        <td class="gnw_num">
            23
        </td>
        <td class="gnw_num">
            41
        </td>
        <td class="gnw_num">
            0.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Product development
        </td>
        <td class="gnw_num">
            165
        </td>
        <td class="gnw_num">
            395
        </td>
        <td class="gnw_num">
            7.1
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Sales, general and administrative
        </td>
        <td class="gnw_num">
            87
        </td>
        <td class="gnw_num">
            158
        </td>
        <td class="gnw_num">
            2.9
        </td>
    </tr>

</tbody>
</table>

<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br><br>
    <strong>Unaudited Condensed Consolidated Statements of
                                                                                       Income</strong>
    <br><br>
    <strong>(in millions of Russian rubles and U.S. dollars, except share
                                                            and per share data)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_long_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline" colspan="3">
            <strong>Six months ended June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>$</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            <strong>&nbsp;</strong></td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Revenues
        </td>
        <td class="gnw_num">
            23,043
        </td>
        <td class="gnw_num">
            26,259
        </td>
        <td class="gnw_num">
            472.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Operating costs and expenses:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Cost of revenues<sup>(1)</sup></td>
        <td class="gnw_num">
            6,759
        </td>
        <td class="gnw_num">
            7,695
        </td>
        <td class="gnw_num">
            138.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Product development<sup>(1)&nbsp;</sup></td>
        <td class="gnw_num">
            4,083
        </td>
        <td class="gnw_num">
            6,647
        </td>
        <td class="gnw_num">
            119.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Sales, general and administrative<sup>(1)</sup></td>
        <td class="gnw_num">
            3,669
        </td>
        <td class="gnw_num">
            4,871
        </td>
        <td class="gnw_num">
            87.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Depreciation and amortization&nbsp;
        </td>
        <td class="gnw_num_uline">
            2,183
        </td>
        <td class="gnw_num_uline">
            3,364
        </td>
        <td class="gnw_num_uline">
            60.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i25">
            Total operating costs and expenses
        </td>
        <td class="gnw_num_uline">
            16,694
        </td>
        <td class="gnw_num_uline">
            22,577
        </td>
        <td class="gnw_num_uline">
            406.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Income from operations
        </td>
        <td class="gnw_num">
            6,349
        </td>
        <td class="gnw_num">
            3,682
        </td>
        <td class="gnw_num">
            66.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Interest income, net
        </td>
        <td class="gnw_num">
            375
        </td>
        <td class="gnw_num">
            840
        </td>
        <td class="gnw_num">
            15.1
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Other income (loss), net
        </td>
        <td class="gnw_num_uline">
            &nbsp;51
        </td>
        <td class="gnw_num_uline">
            &nbsp;(954)
        </td>
        <td class="gnw_num_uline">
            (17.1)
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i25">
            Net income before income taxes
        </td>
        <td class="gnw_num">
            6,775
        </td>
        <td class="gnw_num">
            3,568
        </td>
        <td class="gnw_num">
            64.3
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Provision for income taxes
        </td>
        <td class="gnw_num_uline">
            1,699
        </td>
        <td class="gnw_num_uline">
            1,018
        </td>
        <td class="gnw_num_uline">
            18.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Net income
        </td>
        <td class="gnw_num_dline">
            5,076
        </td>
        <td class="gnw_num_dline">
            2,550
        </td>
        <td class="gnw_num_dline">
            45.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Net income per Class&nbsp;A and Class&nbsp;B share:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Basic
        </td>
        <td class="gnw_num_dline">
            15.82
        </td>
        <td class="gnw_num_dline">
            8.02
        </td>
        <td class="gnw_num_dline">
            0.14
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Diluted
        </td>
        <td class="gnw_num_dline">
            15.51
        </td>
        <td class="gnw_num_dline">
            7.90
        </td>
        <td class="gnw_num_dline">
            0.14
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Weighted average number of Class A and Class B shares outstanding
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Basic
        </td>
        <td class="gnw_num">
            320,768,126
        </td>
        <td class="gnw_num">
            318,125,930
        </td>
        <td class="gnw_num">
            318,125,930
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Diluted
        </td>
        <td class="gnw_num">
            327,326,564
        </td>
        <td class="gnw_num">
            322,884,490
        </td>
        <td class="gnw_num">
            322,884,490
        </td>
    </tr>
    <tr>
        <td class="gnw_label_uline" colspan="4">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label" colspan="4">
            <sup>(1)</sup>These balances exclude depreciation and amortization
                          expenses, which are presented separately, and include
                          share‑based compensation expenses of:
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Cost of revenues
        </td>
        <td class="gnw_num">
            42
        </td>
        <td class="gnw_num">
            84
        </td>
        <td class="gnw_num">
            1.5
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Product development
        </td>
        <td class="gnw_num">
            335
        </td>
        <td class="gnw_num">
            774
        </td>
        <td class="gnw_num">
            13.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label_i10">
            Sales, general and administrative
        </td>
        <td class="gnw_num">
            153
        </td>
        <td class="gnw_num">
            296
        </td>
        <td class="gnw_num">
            5.3
        </td>
    </tr>

</tbody>
</table>
<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br><br>
    <strong>Unaudited Condensed Consolidated Statements of Cash
                                                            Flows</strong>
    <br><br>
    <strong>(in millions of Russian rubles and U.S. dollars)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_long_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline" colspan="3">
            <strong>Three months ended June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>$</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS FROM OPERATING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net income&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;2,396
        </td>
        <td class="gnw_num">
            &nbsp;423
        </td>
        <td class="gnw_num">
            &nbsp;7.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Adjustments to reconcile net income to net cash provided by operating
            activities:
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Depreciation and amortization of property and equipment&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;1,076
        </td>
        <td class="gnw_num">
            &nbsp;1,765
        </td>
        <td class="gnw_num">
            &nbsp;31.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Amortization of acquisition‑related intangible assets&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;38
        </td>
        <td class="gnw_num">
            &nbsp;109
        </td>
        <td class="gnw_num">
            &nbsp;2.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Amortization of debt discount and issuance costs&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;190
        </td>
        <td class="gnw_num">
            &nbsp;218
        </td>
        <td class="gnw_num">
            &nbsp;3.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Share‑based compensation expense&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;275
        </td>
        <td class="gnw_num">
            &nbsp;594
        </td>
        <td class="gnw_num">
            &nbsp;10.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred income taxes&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(72)
        </td>
        <td class="gnw_num">
            &nbsp;230
        </td>
        <td class="gnw_num">
            &nbsp;4.1
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Foreign exchange losses
        </td>
        <td class="gnw_num">
            &nbsp;625
        </td>
        <td class="gnw_num">
            &nbsp;1,869
        </td>
        <td class="gnw_num">
            &nbsp;33.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Other&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(105)
        </td>
        <td class="gnw_num">
            &nbsp;(1.9)
        </td>
    </tr>
    <tr>
        <td class="gnw_label" colspan="3">
            Changes in operating assets and liabilities excluding the effect of
            acquisitions:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts receivable, net&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(169)
        </td>
        <td class="gnw_num">
            &nbsp;58
        </td>
        <td class="gnw_num">
            &nbsp;1.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Prepaid expenses and other assets&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(984)
        </td>
        <td class="gnw_num">
            &nbsp;1,212
        </td>
        <td class="gnw_num">
            &nbsp;21.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts payable and accrued liabilities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;650
        </td>
        <td class="gnw_num">
            &nbsp;141
        </td>
        <td class="gnw_num">
            &nbsp;2.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred revenue&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(4)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(128)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(2.3)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash provided by operating activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;4,021 </strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;6,386 </strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;115.0 </strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS USED IN INVESTING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Purchase of property and equipment&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(2,146)
        </td>
        <td class="gnw_num">
            &nbsp;(4,026)
        </td>
        <td class="gnw_num">
            &nbsp;(72.5)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from sale of property and equipment
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;27
        </td>
        <td class="gnw_num">
            &nbsp;0.5
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Acquisitions of businesses, net of cash acquired&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(118)
        </td>
        <td class="gnw_num">
            &nbsp;(2.1)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in non‑marketable equity securities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(36)
        </td>
        <td class="gnw_num">
            &nbsp;(43)
        </td>
        <td class="gnw_num">
            &nbsp;(0.8)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from maturity of debt securities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;521
        </td>
        <td class="gnw_num">
            &nbsp;9.4
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in term deposits&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(1,717)
        </td>
        <td class="gnw_num">
            &nbsp;(18,683)
        </td>
        <td class="gnw_num">
            &nbsp;(336.5)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Maturities of term deposits&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;9,114
        </td>
        <td class="gnw_num">
            &nbsp;164.1
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Loans granted
        </td>
        <td class="gnw_num_uline">
            &nbsp;(178)
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash used in investing activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(4,077)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(13,208)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(237.9)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS USED IN FINANCING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from exercise of share options&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;38
        </td>
        <td class="gnw_num">
            &nbsp;63
        </td>
        <td class="gnw_num">
            &nbsp;1.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Repurchases of convertible debt&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(1,336)
        </td>
        <td class="gnw_num">
            &nbsp;(24.1)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Repurchases of ordinary shares&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(3,576)
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash used in financing activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(3,538)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(1,273)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(22.9)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            Effect of exchange rate changes on cash and cash equivalents&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(1,321)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(909)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(16.4)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net change in cash and cash equivalents&nbsp;
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(4,915)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(9,004)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(162.2)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            Cash and cash equivalents at beginning of period&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;25,751
        </td>
        <td class="gnw_num">
            &nbsp;18,434
        </td>
        <td class="gnw_num">
            &nbsp;332.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Cash and cash equivalents at end of period&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;20,836
        </td>
        <td class="gnw_num">
            &nbsp;9,430
        </td>
        <td class="gnw_num">
            &nbsp;169.8
        </td>
    </tr>

</tbody>
</table>
<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br><br>
    <strong>Unaudited Condensed Consolidated Statements of Cash
                                                            Flows</strong>
    <br><br>
    <strong>(in millions of Russian rubles and U.S. dollars)</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_long_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline" colspan="3">
            <strong>Six months ended June&nbsp;30,</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>RUB</strong></td>
        <td class="gnw_colhead">
            <strong>$</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS FROM OPERATING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net income&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;5,076
        </td>
        <td class="gnw_num">
            &nbsp;2,550
        </td>
        <td class="gnw_num">
            &nbsp;45.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Adjustments to reconcile net income to net cash provided by operating
            activities:
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Depreciation and amortization of property and equipment&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;2,109
        </td>
        <td class="gnw_num">
            &nbsp;3,143
        </td>
        <td class="gnw_num">
            &nbsp;56.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Amortization of acquisition‑related intangible assets&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;74
        </td>
        <td class="gnw_num">
            &nbsp;221
        </td>
        <td class="gnw_num">
            &nbsp;4.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Amortization of debt discount and issuance costs&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;373
        </td>
        <td class="gnw_num">
            &nbsp;491
        </td>
        <td class="gnw_num">
            &nbsp;8.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Share‑based compensation expense&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;530
        </td>
        <td class="gnw_num">
            &nbsp;1,154
        </td>
        <td class="gnw_num">
            &nbsp;20.7
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred income taxes&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(49)
        </td>
        <td class="gnw_num">
            &nbsp;(105)
        </td>
        <td class="gnw_num">
            &nbsp;(1.9)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Foreign exchange (gains)/losses
        </td>
        <td class="gnw_num">
            &nbsp;(22)
        </td>
        <td class="gnw_num">
            &nbsp;1,153
        </td>
        <td class="gnw_num">
            &nbsp;20.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Other&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(26)
        </td>
        <td class="gnw_num">
            &nbsp;(215)
        </td>
        <td class="gnw_num">
            &nbsp;(3.9)
        </td>
    </tr>
    <tr>
        <td class="gnw_label" colspan="2">
            Changes in operating assets and liabilities excluding the effect of
            acquisitions:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts receivable, net&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(106)
        </td>
        <td class="gnw_num">
            &nbsp;(783)
        </td>
        <td class="gnw_num">
            &nbsp;(14.1)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Prepaid expenses and other assets&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(1,489)
        </td>
        <td class="gnw_num">
            &nbsp;661
        </td>
        <td class="gnw_num">
            &nbsp;12.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Accounts payable and accrued liabilities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;336
        </td>
        <td class="gnw_num">
            &nbsp;(733)
        </td>
        <td class="gnw_num">
            &nbsp;(13.1)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Deferred revenue&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(184)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(44)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(0.8)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash provided by operating activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;6,622 </strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;7,493 </strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;135.0 </strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS USED IN INVESTING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Purchase of property and equipment&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(4,211)
        </td>
        <td class="gnw_num">
            &nbsp;(8,862)
        </td>
        <td class="gnw_num">
            &nbsp;(159.6)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from sale of property and equipment
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;27
        </td>
        <td class="gnw_num">
            &nbsp;0.5
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Acquisitions of businesses, net of cash acquired&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(146)
        </td>
        <td class="gnw_num">
            &nbsp;(186)
        </td>
        <td class="gnw_num">
            &nbsp;(3.3)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in non‑marketable equity securities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(36)
        </td>
        <td class="gnw_num">
            &nbsp;(54)
        </td>
        <td class="gnw_num">
            &nbsp;(1.0)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from sale of equity securities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;120
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from maturity of debt securities&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;2,844
        </td>
        <td class="gnw_num">
            &nbsp;51.2
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Investments in term deposits&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(11,926)
        </td>
        <td class="gnw_num">
            &nbsp;(21,910)
        </td>
        <td class="gnw_num">
            &nbsp;(394.6)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Maturities of term deposits&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;15,375
        </td>
        <td class="gnw_num">
            &nbsp;276.9
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Loans granted
        </td>
        <td class="gnw_num">
            &nbsp;(209)
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Escrow cash deposit&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(137)
        </td>
        <td class="gnw_num_uline">
            &nbsp;58
        </td>
        <td class="gnw_num_uline">
            &nbsp;1.0
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash used in investing activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(16,545)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(12,708)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(228.9)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            CASH FLOWS USED IN FINANCING ACTIVITIES:
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
        <td class="gnw_label">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from exercise of share options&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;86
        </td>
        <td class="gnw_num">
            &nbsp;91
        </td>
        <td class="gnw_num">
            &nbsp;1.6
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Proceeds from issuance of convertible debt&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;2,981
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Repurchases of convertible debt&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(2,717)
        </td>
        <td class="gnw_num">
            &nbsp;(48.9)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Payment of debt issuance costs&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;(42)
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Repurchases of ordinary shares&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(7,334)
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net cash used in financing activities
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(4,309)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(2,626)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(47.3)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            Effect of exchange rate changes on cash and cash equivalents&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,674
        </td>
        <td class="gnw_num_uline">
            &nbsp;(374)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(6.8)
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Net change in cash and cash equivalents&nbsp;
        </td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(12,558)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(8,215)</strong></td>
        <td class="gnw_num_uline">
            <strong>&nbsp;(148.0)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label">
            Cash and cash equivalents at beginning of period&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;33,394
        </td>
        <td class="gnw_num">
            &nbsp;17,645
        </td>
        <td class="gnw_num">
            &nbsp;317.8
        </td>
    </tr>
    <tr>
        <td class="gnw_label">
            Cash and cash equivalents at end of period&nbsp;
        </td>
        <td class="gnw_num">
            &nbsp;20,836
        </td>
        <td class="gnw_num">
            &nbsp;9,430
        </td>
        <td class="gnw_num">
            &nbsp;169.8
        </td>
    </tr>

</tbody>
</table>

<p class="text-align-center">
    <strong>YANDEX&nbsp;N.V.</strong>
    <br>
    <strong>RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES</strong>
    <br>
    <strong>TO THE NEAREST COMPARABLE US GAAP MEASURES</strong>
    <br><br>
    <strong>Reconciliation of Ex-TAC Revenues to US GAAP Revenues</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Total revenues
        </td>
        <td class="gnw_num_uline">
            12,158
        </td>
        <td class="gnw_num_uline">
            13,920
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
        <td class="gnw_num_uline">
            23,043
        </td>
        <td class="gnw_num_uline">
            26,259
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: traffic acquisition costs (TAC)</em></td>
        <td class="gnw_num_uline">
            2,651
        </td>
        <td class="gnw_num_uline">
            3,022
        </td>
        <td class="gnw_num_uline">
            <em>14%</em></td>
        <td class="gnw_num_uline">
            5,219
        </td>
        <td class="gnw_num_uline">
            5,739
        </td>
        <td class="gnw_num_uline">
            <em>10%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Ex-TAC revenues
        </td>
        <td class="gnw_num_uline">
            9,507
        </td>
        <td class="gnw_num_uline">
            10,898
        </td>
        <td class="gnw_num_uline">
            <em>15%</em></td>
        <td class="gnw_num_uline">
            17,824
        </td>
        <td class="gnw_num_uline">
            20,520
        </td>
        <td class="gnw_num_uline">
            <em>15%</em></td>
    </tr>
</tbody>
</table>

    <p class="text-align-center">
        <strong>Reconciliation of Adjusted EBITDA to US GAAP Net Income</strong>
    </p>
    <table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">
    <tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead " colspan="3">
            <strong>Three months</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Net income
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,396
        </td>
        <td class="gnw_num_uline">
            &nbsp;423
        </td>
        <td class="gnw_num_uline">
            <em>-82%</em></td>
        <td class="gnw_num_uline">
            &nbsp;5,076
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,550
        </td>
        <td class="gnw_num_uline">
            <em>-50%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: depreciation and amortization</em></td>
        <td class="gnw_num_uline">
            &nbsp;1,114
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,874
        </td>
        <td class="gnw_num_uline">
            <em>68%</em></td>
        <td class="gnw_num_uline">
            &nbsp;2,183
        </td>
        <td class="gnw_num_uline">
            &nbsp;3,364
        </td>
        <td class="gnw_num_uline">
            <em>54%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: share-based compensation expense</em></td>
        <td class="gnw_num_uline">
            &nbsp;275
        </td>
        <td class="gnw_num_uline">
            &nbsp;594
        </td>
        <td class="gnw_num_uline">
            <em>116%</em></td>
        <td class="gnw_num_uline">
            &nbsp;530
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,154
        </td>
        <td class="gnw_num_uline">
            <em>118%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: compensation expense related to contingent consideration</em>
        </td>
        <td class="gnw_num_uline">
            &nbsp;7
        </td>
        <td class="gnw_num_uline">
            &nbsp;153
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
        <td class="gnw_num_uline">
            &nbsp;7
        </td>
        <td class="gnw_num_uline">
            &nbsp;188
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: interest income, net</em></td>
        <td class="gnw_num_uline">
            &nbsp;(203)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(356)
        </td>
        <td class="gnw_num_uline">
            <em>75%</em></td>
        <td class="gnw_num_uline">
            &nbsp;(375)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(840)
        </td>
        <td class="gnw_num_uline">
            <em>124%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Add: other loss/(income), net
        </td>
        <td class="gnw_num_uline">
            &nbsp;617
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,787
        </td>
        <td class="gnw_num_uline">
            <em>190%</em></td>
        <td class="gnw_num_uline">
            &nbsp;(51)
        </td>
        <td class="gnw_num_uline">
            &nbsp;954
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: provision for income taxes</em></td>
        <td class="gnw_num_uline">
            &nbsp;821
        </td>
        <td class="gnw_num_uline">
            &nbsp;342
        </td>
        <td class="gnw_num_uline">
            <em>-58%</em></td>
        <td class="gnw_num_uline">
            &nbsp;1,699
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,018
        </td>
        <td class="gnw_num_uline">
            <em>-40%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Adjusted EBITDA
        </td>
        <td class="gnw_num_uline">
            &nbsp;5,027
        </td>
        <td class="gnw_num_uline">
            &nbsp;4,817
        </td>
        <td class="gnw_num_uline">
            <em>-4%</em></td>
        <td class="gnw_num_uline">
            &nbsp;9,069
        </td>
        <td class="gnw_num_uline">
            &nbsp;8,388
        </td>
        <td class="gnw_num_uline">
            <em>-8%</em></td>
    </tr>
    </tbody>
    </table>

    <p class="text-align-center">
        <strong>Reconciliation of Adjusted Net Income to US GAAP Net
                                                                Income</strong>
    </p>
    <table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">
    <tbody>
    <tr>
        <td class="gnw_label" style="border-bottom: none;">
            <em><strong>In RUB millions</strong></em></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Three months ended&nbsp;June&nbsp;30,</strong></td>
        <td class="gnw_colhead" colspan="3">
            <strong>Six months ended&nbsp;June&nbsp;30,</strong></td>
    </tr>

    <tr>
        <td class="gnw_label_uline">
            <strong>&nbsp;</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
        <td class="gnw_colhead_uline">
            <strong>2014</strong></td>
        <td class="gnw_colhead_uline">
            <strong>2015</strong></td>
        <td class="gnw_colhead_uline">
            <em>Change</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Net income
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,396
        </td>
        <td class="gnw_num_uline">
            &nbsp;423
        </td>
        <td class="gnw_num_uline">
            <em>-82%</em></td>
        <td class="gnw_num_uline">
            &nbsp;5,076
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,550
        </td>
        <td class="gnw_num_uline">
            <em>-50%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: SBC expense</em></td>
        <td class="gnw_num_uline">
            &nbsp;275
        </td>
        <td class="gnw_num_uline">
            &nbsp;594
        </td>
        <td class="gnw_num_uline">
            <em>116%</em></td>
        <td class="gnw_num_uline">
            &nbsp;530
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,154
        </td>
        <td class="gnw_num_uline">
            <em>118%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: reduction in income tax attributable to SBC expense</em></td>
        <td class="gnw_num_uline">
            &nbsp;(5)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(11)
        </td>
        <td class="gnw_num_uline">
            <em>120%</em></td>
        <td class="gnw_num_uline">
            &nbsp;(10)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(20)
        </td>
        <td class="gnw_num_uline">
            <em>100%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: compensation expense related to contingent consideration</em>
        </td>
        <td class="gnw_num_uline">
            &nbsp;7
        </td>
        <td class="gnw_num_uline">
            &nbsp;153
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
        <td class="gnw_num_uline">
            &nbsp;7
        </td>
        <td class="gnw_num_uline">
            &nbsp;188
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: foreign exchange loss/(gain)</em></td>
        <td class="gnw_num_uline">
            &nbsp;625
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,869
        </td>
        <td class="gnw_num_uline">
            <em>199%</em></td>
        <td class="gnw_num_uline">
            &nbsp;(22)
        </td>
        <td class="gnw_num_uline">
            &nbsp;1,153
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: increase in income tax attributable to foreign exchange
                gain</em></td>
        <td class="gnw_num_uline">
            &nbsp;(125)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(374)
        </td>
        <td class="gnw_num_uline">
            <em>199%</em></td>
        <td class="gnw_num_uline">
            &nbsp;4
        </td>
        <td class="gnw_num_uline">
            &nbsp;(247)
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: gain from repurchases of convertible debt</em></td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(40)
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;(150)
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: increase in income tax attributable to gain from repurchases of
                convertible debt</em></td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;11
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
        <td class="gnw_num_uline">
            &nbsp;--&nbsp;
        </td>
        <td class="gnw_num_uline">
            &nbsp;38
        </td>
        <td class="gnw_num_uline">
            <em>n/m</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Add: amortization of debt discount</em></td>
        <td class="gnw_num_uline">
            &nbsp;190
        </td>
        <td class="gnw_num_uline">
            &nbsp;218
        </td>
        <td class="gnw_num_uline">
            <em>15%</em></td>
        <td class="gnw_num_uline">
            &nbsp;373
        </td>
        <td class="gnw_num_uline">
            &nbsp;491
        </td>
        <td class="gnw_num_uline">
            <em>32%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Less: reduction in income tax attributable to amortization of debt
                discount</em></td>
        <td class="gnw_num_uline">
            &nbsp;(45)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(52)
        </td>
        <td class="gnw_num_uline">
            <em>16%</em></td>
        <td class="gnw_num_uline">
            &nbsp;(88)
        </td>
        <td class="gnw_num_uline">
            &nbsp;(117)
        </td>
        <td class="gnw_num_uline">
            <em>33%</em></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            <em>Adjusted net income</em></td>
        <td class="gnw_num_uline">
            &nbsp;3,318
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,791
        </td>
        <td class="gnw_num_uline">
            <em>-16%</em></td>
        <td class="gnw_num_uline">
            &nbsp;5,870
        </td>
        <td class="gnw_num_uline">
            &nbsp;5,040
        </td>
        <td class="gnw_num_uline">
            <em>-14%</em></td>
    </tr>

</tbody>
</table>


<p class="text-align-center">
    <strong>Reconciliation of Adjusted EBITDA Margin and Adjusted Ex-TAC
                                                            EBITDA Margin to US GAAP Net Income Margin</strong>
</p>
<table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">
<tbody>
    <tr>
        <td class="gnw_label_uline" colspan="1" rowspan="1">
            <strong><em>In RUB millions&nbsp;</em></strong></td>
        <td class="gnw_label_uline" colspan="6" rowspan="1">
            &nbsp;
        </td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline">
            <strong>US GAAP <br>
                    Actual Net <br>
                    Income</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Net Income <br>
                    Margin (1)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjustment <br>
                    (2)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    EBITDA</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    EBITDA <br>
                    Margin (3)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    Ex-TAC <br>
                    EBITDA <br>
                    Margin (4)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Three months ended June&nbsp;30, 2015
        </td>
        <td class="gnw_num_uline">
            &nbsp;423
        </td>
        <td class="gnw_num_uline">
            3.0%
        </td>
        <td class="gnw_num_uline">
            &nbsp;4,394
        </td>
        <td class="gnw_num_uline">
            &nbsp;4,817
        </td>
        <td class="gnw_num_uline">
            34.6%
        </td>
        <td class="gnw_num_uline">
            44.2%
        </td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Six months ended June&nbsp;30, 2015
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,550
        </td>
        <td class="gnw_num_uline">
            9.7%
        </td>
        <td class="gnw_num_uline">
            &nbsp;5,838
        </td>
        <td class="gnw_num_uline">
            &nbsp;8,388
        </td>
        <td class="gnw_num_uline">
            31.9%
        </td>
        <td class="gnw_num_uline">
            40.9%
        </td>
    </tr>
    </tbody>
    </table>
<span>
    (1)&nbsp; Net income margin is defined as net income divided by total
    revenues.
    <br>
    (2)&nbsp; Adjusted to eliminate depreciation and amortization expense,
    SBC expense, expense related to contingent compensation, interest
    income, net, other loss/(income), net, and provision for income taxes.
    For a reconciliation of adjusted EBITDA to net income, please see the
    table above.
    <br>
    (3)&nbsp; Adjusted EBITDA margin is defined as adjusted EBITDA divided
    by total revenues.&nbsp;
    <br>
    (4)&nbsp; Adjusted ex-TAC EBITDA margin is defined as adjusted EBITDA
    divided by ex-TAC revenues.&nbsp;For a reconciliation of ex-TAC revenues
    to GAAP revenues, please see the table above.&nbsp;
</span>

<br><br>

    <p class="text-align-center">
        <strong>Reconciliation of Adjusted Net Income Margin and Adjusted Ex-TAC
                                                                Net Income Margin to US GAAP Net Income Margin</strong>
    </p>
    <table cellpadding="0" cellspacing="6" class="gnw_table_yandex_old">
    <tbody>
    <tr>
        <td class="gnw_label_uline">
            <em><strong>In RUB millions&nbsp;</strong></em></td>
        <td class="gnw_label_uline" colspan="6">
            <strong>&nbsp;</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            &nbsp;
        </td>
        <td class="gnw_colhead_uline">
            <strong>US GAAP <br>
                    Actual Net <br>
                    Income</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Net Income <br>
                    Margin (1)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjustment<br>
                    (2)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    Net Income</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    Net Income <br>
                    Margin (3)</strong></td>
        <td class="gnw_colhead_uline">
            <strong>Adjusted <br>
                    Ex-TAC <br>
                    Net Income <br>
                    Margin (4)</strong></td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Three months ended June&nbsp;30, 2015
        </td>
        <td class="gnw_num_uline">
            &nbsp;423
        </td>
        <td class="gnw_num_uline">
            3.0%
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,368
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,791
        </td>
        <td class="gnw_num_uline">
            20.1%
        </td>
        <td class="gnw_num_uline">
            25.6%
        </td>
    </tr>
    <tr>
        <td class="gnw_label_uline">
            Six months ended June&nbsp;30, 2015
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,550
        </td>
        <td class="gnw_num_uline">
            9.7%
        </td>
        <td class="gnw_num_uline">
            &nbsp;2,490
        </td>
        <td class="gnw_num_uline">
            &nbsp;5,040
        </td>
        <td class="gnw_num_uline">
            19.2%
        </td>
        <td class="gnw_num_uline">
            24.6%
        </td>
    </tr>
</tbody>
</table>
<span>
            (1)&nbsp; Net income margin is defined as net income divided by total
            revenues.
        <br>
            (2)&nbsp; Adjusted to eliminate SBC expense (as adjusted for the income
            tax reduction attributable to SBC expense), expense related to
            contingent compensation, foreign exchange loss (as adjusted for the
            increase in income tax attributable to the loss), gain from repurchases
            of convertible debt (as adjusted for the reduction in income tax
            attributable to the gain) and amortization of debt discount (as adjusted
            for the reduction in income tax attributable to the expense). For a
            reconciliation of adjusted net income to net income, please see the
            table above.
    <br>
            (3)&nbsp; Adjusted net income margin is defined as adjusted net income
            divided by total revenues.&nbsp;
    <br>

            (4)&nbsp; Adjusted ex-TAC net income margin is defined as adjusted net
            income divided by ex-TAC revenues.&nbsp;For a reconciliation of ex-TAC
            revenues to US GAAP revenues, please see the table above.&nbsp;
</span>


<br><br>
<p>Investor Relations<br>
Katya Zhukova<br>
Phone: +7 495 974-35-38<br>
E-mail: askIR@yandex-team.ru<br><br>


Media Relations<br>
Ochir Mandzhikov, Vladimir Isaev<br>
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E-mail: pr@yandex-team.ru</p>
