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NET 1 UEPS TECHNOLOGIES INC - South African Constitutional Court sets aside Appeals Court decision

Release Date: 29/11/2013 14:15
Code(s): NT1     PDF:  
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South African Constitutional Court sets aside Appeals Court decision

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”)



South African Constitutional Court sets aside Appeals Court decision



Johannesburg – November 29, 2013 - Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS;

JSE: NT1) today announced that the South African Constitutional Court (“Constitutional

Court”) ruled that the tender process followed by the South African Social Security Agency

(“SASSA”) in awarding a contract to Net1’s wholly owned subsidiary Cash Paymaster

Services (Proprietary) Limited (“CPS”) was constitutionally invalid. However, the

Constitutional Court suspended its declaration of invalidity pending determination of a just

and equitable remedy. The grant of a just and equitable remedy is reserved pending a further

hearing, which has been set for February 11, 2014. The parties have been ordered to submit

additional information on affidavit by January 30, 2014. Finally, the Constitutional Court

ordered the CEO of SASSA, SASSA and the Company to pay costs, including the cost of

three counsel, in the High Court, South African Appeals Court and the Constitutional Court to

AllPay Consolidated Investment Holdings Limited (“AllPay”).



The Company cannot predict what the outcome of the February 2014 hearing will be. The

contract between SASSA and CPS to distribute social welfare grants to ten million South

Africans every month remains in full force and effect until the Constitutional Court determines

the appropriate remedy.



 The Constitutional Court is the highest court in South Africa and this judgment follows an

appeal by AllPay, an unsuccessful bidder, against the unanimous judgment by the South

African Appeals Court on March 27, 2013, that the tender process was valid and legal. The

full Constitutional Court judgment is available on the Company’s website at www.net1.com.



The Company may issue further comment on the ruling once it has had sufficient time to study

the full judgment.



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: +1-917-767-6722

Email: dchopra@net1.com



Johannesburg

November 29, 2013



Sponsor:

Deutsche Securities (SA) Proprietary Limited


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