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NET 1 UEPS TECHNOLOGIES INC - Net1 completes Korean debt refinancing and announcement of resignation of director

Release Date: 01/11/2013 08:42
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Net1 completes Korean debt refinancing and announcement of resignation of director

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 completes Korean debt refinancing and announcement of resignation of director

Korean debt refinancing

On October 28, 2013, Net1 Applied Technologies Korea (“Net1 Korea”), an indirect wholly-owned subsidiary
of Net1, entered into a Senior Facilities Agreement (the “Facilities Agreement”) with a group of financial
institutions led by Republic of Korea-based Hana Bank which provides for Net1 Korea to borrow up to 85.0
billion Korean won (“KRW”) to refinance Net1 Korea’s outstanding debt.

On October 29, 2013, the USD/KRW exchange rate was $1.00/KRW1,063.

The Facilities Agreement provides for a Tranche A term loan of up to KRW 60.0 billion, a Tranche B term loan
of up to KRW 15.0 billion and a revolving credit facility of up to KRW 10.0 billion. On October 29, 2013, Net1
Korea repaid the entire KRW 92.4 billion outstanding under its existing debt facilities through a full drawdown
of the Tranche A and Tranche B term loans, with the remaining amount paid from Net1 Korea’s existing cash
reserves. Interest on the term loans and revolving credit facility is payable quarterly based on the Korean CD
rate in effect from time to time plus a margin of 3.10% for the Tranche A loan and revolving credit facility and a
margin of 2.90% for the Tranche B loan. The CD rate was 2.66% on September 30, 2013.

The Tranche A loan is repayable in three scheduled annual installments of KRW 10 billion in April 2016, 2017
and 2018 and one final installment of KRW 30 billion on October 29, 2018. The Facility B loan is repayable in
full on October 29, 2014. The revolving credit facility is repayable in full on October 29, 2018. The loans under
the Facilities Agreement are secured by a pledge by Net1 Korea of its entire equity interest in KSNET, Inc. and
certain of Net1 Korea’s accounts and a pledge by the immediate parent of Net1 Korea (also one of the
Company’s subsidiaries) of its entire equity interest in Net1 Korea. The Facilities Agreement contains
customary covenants that require Net1 Korea to maintain agreed leverage and debt service coverage ratios and
restricts Net1 Korea’s ability to make certain distributions with respect to its capital stock, prepay other debt,
encumber its assets, incur additional indebtedness, or engage in certain business combinations. The loans under
the Facilities Agreement are without recourse to, and the covenants and other agreements contained therein do
not apply to, the Company or any of the Company’s subsidiaries (other than Net1 Korea).

The foregoing description of the Facilities Agreement does not purport to be complete and is qualified in its
entirety by reference to the full text of the Facilities Agreement, a copy of which was filed as an exhibit under a
Form 8-K with the United States Securities & Exchange Commission on October 31, 2013.

Resignation of director

On October 31, 2013, Mr. Brian Khomotso Mosehla resigned from his position as a member of the Company’s
board of directors, effective immediately. Mr. Mosehla is a member of a consortium which is participating in
discussions with the Company regarding a possible Black Economic Empowerment transaction. Mr. Mosehla
informed the Company that because he may be a participant in such a transaction, he was resigning in order to
avoid any conflict of interest and to preserve the Company’s ability to structure the terms of a transaction that
would not be impacted by his membership on the Company’s board of directors. Mr. Mosehla also informed the
Company that his resignation did not result from any disagreement with the Company relating to its operations,
policies or practices.

As a result of his resignation, Mr. Mosehla will not stand for election at the Company’s annual meeting of
shareholders to be held on November 19, 2013.
A copy of the Facilities Agreement and Mr. Mosehla’s resignation letter has been filed as exhibits under a Form
8-K filed with the United States Securities & Exchange Commission on October 31, 2013 and are available at
http://www.sec.gov/Archives/edgar/data/1041514/000106299313005310/form8k.htm.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its 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.
Net1’s UEPS/EMV solution is also completely interoperable with global EMV standards that seamlessly permit
access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be
used for banking, healthcare management, payroll, remittances, voting and identification.

Net1 operates market-leading payment processors in South Africa, Republic of Korea, and Ghana. In addition,
Net1’s proprietary Mobile Virtual Card technology offers secure mobile payments and banking services in
developed and emerging countries while its MediKredit and XeoHealth subsidiaries provide its proprietary 5010
and ICD-10 compliant real-time claims adjudication system.

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 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
Managing Director
Phone: +91-99304-65688
Email: dchopra@net1.com

Johannesburg
1 November 2013

Sponsor:
Deutsche Securities (SA) Proprietary Limited

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