Net 1 UEPS Technologies Inc.

Net 1 UEPS Technologies Inc.

November 10, 2010 07:31 ET

Net1 Receives New Orders for an Additional 2,000 Biometric EFTPOS Devices From Its Iraqi Partners

JOHANNESBURG, SOUTH AFRICA--(Marketwire - Nov. 10, 2010) - Net 1 UEPS Technologies Inc. (NASDAQ:UEPS)(JSE:NT1) ("Net1" or the "Company") today announced that its wholly-owned subsidiary, Net1 Universal Electronic Technological Solutions (Pty) Ltd ("NUETS") has received an additional $1.3 million order for 2,000 EFTPOS devices for deployment in Iraq. The Company expects to deliver 500 devices during the second quarter of fiscal 2011 and the remaining 1,500 devices in the third quarter of fiscal 2011.

In August 2008, the Company's UEPS system was implemented in Iraq and is used for the distribution and payment of government grants to war victims, government pension payments to beneficiaries, as well as salary and wage distribution and payment to employees of the two state owned banks.

"We are extremely excited about the rapid pace at which our partner is deploying the UEPS across Iraq. To date, approximately 1.8 million UEPS smart cards have been issued to beneficiaries. The increase in registrations is the result of our partner, ISC, being awarded the business to distribute grants electronically to the war victim beneficiaries across a further 15 provinces of Iraq," said Brenda Stewart, Managing Director of NUETS. "The adoption, success and proliferation of our UEPS technological solutions in Iraq, including the current drive by our partner to deploy thousands of EFTPOS devices, is fast opening new opportunities for Net1 to generate new revenue streams ranging from bill payments to international and domestic money transfers," she 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.

Contact Information

  • Net 1 UEPS Technologies Inc. - Investor Relations Contact:
    Dhruv Chopra
    Vice President of Investor Relations