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NT1 - Net 1 UEPS Technologies, Inc. - Net1 announces 12 month contract with
SASSA
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
"Net1" or "the Company")
Net1 Announces 12 Month Contract with SASSA
Johannesburg, March 27, 2009 - Net 1 UEPS Technologies, Inc. ("Net1" or
the "Company") (NASDAQ: UEPS; JSE: NT1) today announced that it has agreed
the terms of a one year contract with the South African Social Security
Agency ("SASSA") for the payment of social welfare grants in the five
provinces where it currently provides a grant payment service. The current
service level agreements ("SLAs") will automatically terminate on March 31,
2009. The new contract will commence on April 1, 2009 and expire on March 31,
2010.
SASSA has received special approval from the South African National
Treasury Department to conclude new agreements with the current service
providers for a twelve month period without conducting a tender process.
SASSA has indicated that a new tender process will be initiated during the
next twelve months.
The Company and SASSA have agreed on a standard pricing formula based on
a transaction fee per beneficiary paid, calculated on a guaranteed minimum
number of beneficiaries. In addition, SASSA will assume responsibility for
the pre-funding of all social welfare grants with effect from the May 2009
pay cycle.
Serge Belamant, Chairman and CEO of Net1, said "We are satisfied with the new
contract terms as the combination of the dilutive effects that arise from the
standardized pricing, the savings which are achievable by Net1 as a result of
these changes and the resultant business opportunities that open up for Net1
are likely to lead to a financial outcome consistent with our existing business
plan for the year."
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 Africa-based subsidiary of the
Company, and provide the Company with the building blocks for developing secure
end-to-end payment solutions.
In late August 2008, Net1 acquired 80.1% of BGS Smartcard System AG ("BGS"),
an Austrian company, whose core business consists of developing and integrating
smart card-based offline and online financial transaction systems. Since 1993,
BGS has implemented tailor-made smart card-based payment solutions, focusing
on emerging economies and in cooperation with banks, enterprises and government
authorities. BGS is headquartered in Vienna, Austria, and has subsidiaries in
India and Russia, and a branch office in the Ukraine. Distributors are located
in Asia, Central and South America, the Commonwealth of Independent States and
the Middle East.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and
unknown risks and uncertainties. A discussion of various factors that could
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 William Espley at Net1 Investor Relations at:
Telephone: 1-604-484-8750
Toll Free: 1-866-412-NET1 (6381)
Johannesburg
March 27, 2009
Sponsor to Net1
Deutsche Securities (SA) (Proprietary) Limited
Date: 27/03/2009 15:40:01 Supplied by www.sharenet.co.za
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