SASSA awards national tender to Net1
Johannesburg, South Africa, January 18, 2012 - Net 1 UEPS
Technologies, Inc. ("Net1" or the "Company") (NASDAQ: UEPS,
JSE: NT1) today announced that its wholly owned subsidiary,
Cash Paymaster Services (Pty) Ltd ("CPS") has received a
Letter of Award from the South African Social Security Agency
("SASSA") for the provision of payment services for social
grants in all of South Africa's nine provinces for a period
of five years. The tender award is subject to the usual
execution of a service level agreement by January 31,
2012.
"We are overjoyed by the SASSA tender award and very proud of
the confidence that SASSA has placed in our company and
technology," said Dr. Serge Belamant, Chairman and CEO of
Net1. "Our biometric UEPS/EMV technology has enabled us to
provide SASSA with a comprehensive, cost effective solution
for the payment of approximately fifteen million monthly
grants to ten million recipients in rural and urban areas and
we are committed to provide the grant recipients and the
South African government with the highest level of service
and security. I would like to thank all of our employees and
partners for their invaluable contribution towards the tender
outcome. This tender award emphasizes the strategic
importance of our South African operations and provides
further confirmation of our business plan that will afford
us, together with our Black Empowerment initiatives that we
have been formalizing during the last few years, with the
launch pad for our future growth in Africa and other
developing economies," he concluded.
Herman Kotzé, CFO of Net1, commented: "Given the magnitude of
the SASSA tender award, we expect a significant impact on the
group's financial affairs when the contract period commences
as a result of new volume and pricing, additional costs,
capital expenditure and additional contractual obligations.
These may have different financial effects in the short-term
relative to the long-term benefits to the group. We will be
able to provide more detailed guidance regarding the
financial effect of this tender award when the service level
agreement has been concluded and hope to provide such detail
during our next scheduled earnings call on Friday, February
10, 2012."
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems
that leverage its Universal Electronic Payment System, or
UEPS, to facilitate biometrically secure real-time electronic
transaction processing to unbanked and under-banked
populations of developing economies around the world in an
online or offline environment. In addition to payments, UEPS
can be used for banking, healthcare management, payroll,
remittances, voting and identification.
Net1 operates market-leading payment processors in South
Africa, Republic of Korea, Ghana and Iraq. In addition,
Net1's proprietary Mobile Virtual Card technology offers
secure mobile payments and banking services in developed and
emerging countries while its MediKredit and XeoHealth
subsidiaries provide its proprietary 5010 and ICD-10
compliant real-time claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary
listing on the JSE Limited.
EAST47361956.1
Forward-Looking Statements
This announcement contains forward-looking statements that
involve known and unknown risks and uncertainties, including
the risk of our being able to successfully conclude a service
level agreement in a timely manner. A discussion of various
factors that cause our actual results, levels of activity,
performance or achievements to differ materially from those
expressed in such forward-looking statements are included in
our filings with the Securities and Exchange Commission. We
undertake no obligation to revise any of these statements to
reflect future events.
Investor Relations Contact:
Dhruv Chopra
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com
EAST47361956.1
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