NET 1 UEPS TECHNOLOGIES INC - Net 1 Commences Lawsuit Against AllPay

Net 1 Commences Lawsuit Against AllPay

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”)

Net 1 Commences Lawsuit Against AllPay

On December 11, 2012, Net 1 UEPS Technologies, Inc. (“Net 1’) commenced a
lawsuit in the South Gauteng High Court in South Africa against AllPay Consolidated
Investment Holdings (Pty) Ltd (“AllPay”). In its lawsuit, Net 1 has alleged that
AllPay, wrongfully and unlawfully and with the intention of injuring Net 1’s
reputation, infringing Net 1’s and its subsidiaries’ goodwill and reducing Net 1’s
share price, competed unlawfully with Net 1, by

   •   directly or indirectly making false reports and providing false information to
       members of the South African media which AllPay orchestrated thereby
       creating the basis for false media reports which alleged or implied that the
       SASSA tender process was tainted by corruption through bribes by or on
       behalf of Net 1’s subsidiary, Cash Paymaster Services (“CPS”);

   •   introducing the media reports and allegations of corruption by or on behalf of
       Net 1 in connection with the SASSA tender process into the court proceedings
       in South Africa instituted by AllPay which sought to set aside the award of the
       tender to CPS;

   •   causing an unfounded report to be made to the Johannesburg Stock Exchange
       (“JSE”) regarding disclosure that Net 1 made in relation to the SASSA
       contract;

   •   making a report to the U.S. Department of Justice (“DOJ”) bringing to the
       attention of the DOJ the corruption allegations and the South African media
       reports and repeating the allegations made in the report to the JSE; and

   •   falsely seeking to create the impression in media reports and radio interviews
       that it had been found in the South African court proceedings described above
       that the tender process was tainted by corruption.

In the lawsuit, Net 1 is seeking damages in the aggregate amount of ZAR 478 million
(approximately US$55 million based on the ZAR/US dollar exchange rate on
December 11, 2012) plus interest and costs.

About Net1 (www.net1.com)
We are a leading provider of alternative payment systems that leverage our Universal
Electronic Payment System, or UEPS, to facilitate biometrically secure real-time
electronic transaction processing to unbanked and under-banked populations of
developing economies around the world in an online or offline environment. In
addition to payments, UEPS can be used for banking, healthcare management,
payroll, remittances, voting and identification.

We operate market-leading payment processors in South Africa, Republic of Korea,
Ghana and Iraq. In addition, our proprietary Mobile Virtual Card technology offers
secure mobile payments and banking services in developed and emerging countries.

We have 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 our actual
results, levels of activity, performance or achievements to differ materially from those
expressed in such forward-looking statements are included in our filings with the
Securities and Exchange Commission. We undertake no obligation to revise any of
these statements to reflect future events.


Investor Relations Contact:
Dhruv Chopra
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com

Johannesburg
12 December 2012

Sponsor:
Deutsche Securities (SA) (Proprietary) Limited

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