Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

November 18, 2010 16:02 ET

Net1 Receives New Order for 1.1 Million Smart Cards and 2,500 EFTPOS Devices from Uzbek Banks

JOHANNESBURG, SOUTH AFRICA--(Marketwire - Nov. 18, 2010) - Net1 UEPS Technologies, Inc. ("Net1" or the "Company") (NASDAQ:UEPS)(JSE:NT1) today announced that its majority-owned subsidiary, Net1 Universal Technologies (Austria) AG ("Net1 UTA") has received a new order from the leading banks of Uzbekistan for the delivery of 1.1 million smart cards and 2,500 EFTPOS terminals during 2011.

The National Bank of Uzbekistan started a small pilot project in 1995 with 5,000 smart cards. This project has evolved into a fully-fledged National Interbank Payment System under the brand name UZKART and currently comprises 6.6 million UEPS smart cards and 45,000 POS terminals.

The National Interbank Payment System operates on Net1's FTS/UEPS technology platform and is supported and jointly managed by the 25 largest banks of Uzbekistan.

"The UEPS smart card technology was the ideal choice to address the Uzbek needs, having been developed to substitute cash in the domestic mass markets. Its innovative offline card-to-card concept has proved to be more efficient, flexible, and profitable for domestic markets than cash or conventional payment solutions," said Leonid Delberg, Managing Director of Net1 UTA. "After 15 successful years, transaction volumes and numbers are consistently increasing, establishing UZKART as the preferred day-to-day means of payment in Uzbekistan. We look forward to continuing our excellent partnership with the banks of Uzbekistan to further innovate the domestic financial services market," 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. 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.

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