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 Date: 12/12/2012 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.