Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

November 10, 2010 16:27 ET

Net1 Clarifies Fiscal 2011 Guidance

JOHANNESBURG, SOUTH AFRICA--(Marketwire - Nov. 10, 2010) - Net 1 UEPS Technologies Inc. (NASDAQ:UEPS)(JSE:NT1) ("Net1" or the "Company") today announced that the Company reiterates its guidance of Fundamental EPS of at least $1.50 on a constant USD/ZAR currency basis for fiscal 2011, assuming the continuation of its contract with SASSA on similar terms for the full year, but without giving effect to the recent acquisition of KSNET in Korea. Net1 expects to complete its pro forma financial statements to include KSNET and its purchase price allocation in January 2011, at which point the Company will update its fiscal 2011 guidance to reflect KSNET. Net1 management continues to expect the KSNET acquisition to be accretive to fundamental net income and fundamental earnings per share.

Fundamental net income and fundamental earnings per share

The Company's GAAP net income and earnings per share include amortization of intangible assets and stock-based compensation. In addition, GAAP net income and earnings per share for 1Q 2011 includes transaction-related costs and an unrealized foreign exchange loss related to the acquisition of KSNET. The Company excludes all of the above-mentioned amounts when calculating fundamental net income and earnings per share, because management believes that these adjustments enhance its own evaluation, as well as an investor's understanding, of the Company's financial performance.

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. Net1's 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. Net1's 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/smartcard) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors.

Net1 recently acquired KSNET, Inc. KSNET services a broad range of industries in Korea, including credit card, retail and wholesale merchant, financial institutions, governmental organizations, utility companies and e-commerce businesses. It offers payment processing solutions including payment card and banking value added networks, payment gateways, cash receipt, purchase cards and point cards. It has a diverse merchant base and processed over 1.4 billion transactions in 2009.

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.

Contact Information