Net 1 UEPS Technologies Inc.
NASDAQ : UEPS

Net 1 UEPS Technologies Inc.

March 10, 2008 13:46 ET

Net1 Announces 12 Month Contract Extensions

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 10, 2008) - Net 1 UEPS Technologies Inc. (NASDAQ:UEPS) ("Net1" or the "Company") today announced that it has received notices of extension from the South African Social Security Agency ("SASSA") for all five provinces where it currently provides a grant payment service. In terms of these extension notices, the current service level agreements ("SLAs") will no longer automatically terminate on March 31, 2008. The SLAs have been extended by 12 months to March 31, 2009.

SASSA reserves the right to terminate any of the SLAs on 30 days written notice, but only after an initial period of six months which ends on September 30, 2008.

Net1 has not received any further update on the current tender process for the provision of a social grant payment service in South Africa's nine provinces and our current tender submissions will remain valid for acceptance until March 31, 2008.

About Net1 (www.net1ueps.com)

Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. The Company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers. To accomplish this, the Company has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer. This offline capability means that users of Net1's system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1's system can be used for banking, health care management, international money transfers, voting and identification.

The Company also focuses on the development and provision of secure transaction technology, solutions and services. The Company's core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors. These technologies form the cornerstones of the "trusted transactions" environment of Prism, a South African based subsidiary of the Company, and provide the Company with the building blocks for developing secure end-to-end payment solutions.

This announcement contains forward-looking statements pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, such as implementation of the Company's Prism strategy, 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. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.



NET 1 U.E.P.S. TECHNOLOGIES INC.
4th Floor, North Wing,
President Place, Cnr. Jan Smuts Avenue and Bolton Road
Rosebank, Johannesburg, South Africa
Tel: 011-27-11-343-2000 Fax: 011-27-11-880-7080


Contact Information

  • Net 1 UEPS Technologies Inc.
    Ilja Graulich
    Vice President Investor Relations
    +27-11-343-2019 Cell: +27-83-604-0820
    Email: iljag@net1ueps.co.za
    or
    Net 1 UEPS Technologies Inc.
    William Espley
    Investor Relations
    (604) 484-8750 or Toll Free: 1-866-412-NET1 (6381)
    Website: www.net1ueps.com