Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

March 31, 2010 16:15 ET

Net1 Announces Three Month Extension of SASSA Contract

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 31, 2010) - Net 1 UEPS Technologies Inc. ("Net1" or the "Company") (NASDAQ:UEPS)(JSE:NT1) today announced a three month extension of its contract for the payment of social welfare grants with the South African Social Security Agency ("SASSA"), on the same terms and conditions as the existing agreement, which was scheduled to expire on March 31, 2010. The three month extension allows Net1 to maintain its high level of service delivery while the Company and SASSA conclude negotiations. Our ongoing discussions with SASSA include the evaluation of a number of proposals including a further contract extension, a new fixed-term contract and the commencement of a new tender process. Further announcements will be made once discussions have been concluded.

"Although we would have liked to finalize a definitive agreement with SASSA prior to March 31, 2010, this process will provide us a further opportunity to demonstrate the breadth of our technology and various business models to SASSA," said Dr. Serge Belamant, Net1's Chairman and Chief Executive Officer. "We remain committed to deliver the most efficient and cost-effective solution to SASSA and the most vulnerable citizens of South Africa," he concluded.

About Net1 (

Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. Our market-leading system enables 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. Our universal electronic payment system, or UEPS, uses 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 the Net1 system can enter into transactions at any time with other card holders even in the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, UEPS can be used for banking, healthcare management, international money transfers, voting and identification.

Net1 also focuses on the development and provision of secure transaction technology, solutions and services and offers transaction processing, financial and clinical risk management solutions to both funders and providers of healthcare. Its 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.

Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that cause the Company's actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in the Company's filings with the Securities and Exchange Commission. 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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