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NT1 - Net 1 UEPS Technologies, Inc - Net1 Provides Update on SASSA Contract
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 Provides Update on SASSA Contract
Johannesburg, South Africa (July 1, 2010) - Net 1 UEPS Technologies, Inc.
("Net1" or the "Company") (NASDAQ: UEPS, JSE: NT1) today announced that
negotiations regarding the current agreement with the South African Social
Security Agency ("SASSA") for the payment of social welfare grants which expired
on June 30, 2010, have not been finalized and are ongoing. Net1 is committed to
delivering the highest level of service to the South African government and its
citizens, and continues to provide its payment service to SASSA, having
commenced payment activities for the July payment cycle. The Company`s ongoing
discussions with SASSA include the evaluation of a number of proposals,
including a further contract extension, a new fixed-term contract and the
commencement of a new tender process. Further announcements will be made when an
agreement is reached regarding the terms and conditions of any contract
extension.
"Our negotiations provide an opportunity to demonstrate the breadth of our
technology and various business models to SASSA. However, our ability to
accurately predict the timing of any decisions is more challenging given certain
factors outside the Company`s control" said Dr. Serge Belamant, Net1`s Chairman
and Chief Executive Officer. "We remain committed to deliver the most efficient
and cost-effective solution to SASSA and the most vulnerable citizens of South
Africa," he concluded.
About Net1 (www.net1.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. Our 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. Our
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/smart
card) technologies are principally applied to electronic commerce transactions
in the telecommunications, banking, retail, petroleum and utilities market
sectors.
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, including specifically statements relating to
the Company`s contract with SASSA. 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 Dhruv Chopra at Net1 Investor Relations at:
Telephone: +1-212-626-6675
Email: dchopra@net1.com
Johannesburg
1 July 2010
Sponsor to Net1
Deutsche Securities (SA) (Proprietary) Limited
Date: 01/07/2010 15:36:01 Supplied by www.sharenet.co.za
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