Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

March 03, 2005 13:22 ET

Net 1 UEPS Technologies Inc.: UEPS-Universal Electronic Payment System-Retail Application Into Merchant Stores


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NET 1 UEPS TECHNOLOGIES INC.

OTC Bulletin Board SYMBOL: NUEP

MARCH 3, 2005 - 13:22 ET

Net 1 UEPS Technologies Inc.: UEPS-Universal
Electronic Payment System-Retail Application Into
Merchant Stores

JOHANNESBURG, SOUTH AFRICA--(CCNMatthews - March 3, 2005) - Net 1
U.E.P.S. Technologies Inc. (OTCBB:NUEP), is pleased to announce the
successful deployment of its UEPS (Universal Electronic Payment System)
retail application into merchant stores throughout the South African
provinces of Northern Cape, Eastern Cape, KwaZulu Natal and Limpopo. The
system allows all our cardholders to load their social security grants
or salaries onto their smart cards at any participating merchant. Once
their smart cards have been loaded, cardholders have the flexibility to
either purchase goods and/or make cash withdrawals offline.

The support from merchants in South Africa has been overwhelming and
contracts have been signed with merchants in rural, semi-urban and urban
areas, including large chain stores. Benefits to merchants include:

- increased turnover from a growing smart card client base,

- reduced cash holdings,

- reduced banking charges,

- reduced communication costs,

- reduced reconciliation problems, and

- minimization of the risks associated with fraud and theft.

Merchants can also generate new income streams for themselves by selling
our comprehensive range of financial products.

The initial launch of the UEPS retail application commenced during March
2004 in selected areas of the Northern Cape and KwaZulu Natal provinces
to pilot the concept and gauge acceptance levels. This was followed by
an aggressive marketing campaign and rollout which commenced in
September 2004. At the end of February 2005, a total number of 2,053
point of sale terminals have been installed in merchant stores. The
total value spent in these stores since inception amounts to
approximately US$41million (ZAR 241.1 million).

Net1 generates transaction, rental and processing fees from all
merchants and transaction fees from card holders who do not receive
social security grants.

"We are extremely pleased with the take up and support from the merchant
stores, as well as the difference the system is making to the lives of
our customers." says Brenda Stewart, Net1's Senior Vice President for
Marketing & Sales "Net1 is very passionate about offering security,
convenience, affordability and accessibility to all."

About Net1 (www.net1ueps.com)

Net1 is a provider of technologies and systems that create a secure and
affordable transacting channel between formal businesses and the
"un-banked" and "under-banked" populations of developing countries who
have no or limited access to traditional banking facilities. Net1 has
developed the Universal Electronic Payment System ("UEPS") that utilizes
smart card technology to provide a fully integrated payment, switching
and settlement system suitable for multiple applications and services
meeting the requirements of the un-banked and under-banked populations.
The company, through its subsidiaries, employs the UEPS to add
efficiency to a myriad of commercial activities that involve banking and
payment systems, money transfers and other electronic data applications.
The company's payment system enables its customers to effect
transactions "off-line" in underdeveloped areas where traditional
financial institutions and their services have limited penetration or
are otherwise unavailable due to the lack of, or limited branch,
Automated Teller Machines (or "ATM"), Point Of Sale, support and
communications infrastructures.

This announcement may contain forward-looking statements pursuant to the
"safe-harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These forward looking statements involve risks and
uncertainties such as product demand, market and customer acceptance,
the effect of economic conditions, competition, pricing, development
difficulties, foreign currency risks, costs of capital, the ability to
consummate and integrate acquisitions, and other risks detailed in the
company's SEC filings, including, but not limited to, our most recent
report on Form 8-K. The company undertakes no obligation to revise any
of these statements to reflect future circumstances or the occurrence of
unanticipated events.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Net 1 UEPS Technologies Inc.
    William Espley
    Net1 Investor Relations
    (604) 484-8750 or Toll Free: 1-866-412-NET1 (6381)
    www.net1ueps.com