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NET 1 UEPS TECHNOLOGIES INC - Net1 finalizes recovery of additional SASSA implementation costs

Release Date: 06/06/2014 16:30
Code(s): NT1     PDF:  
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Net1 finalizes recovery of additional SASSA implementation costs

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 finalizes recovery of additional SASSA implementation costs

Johannesburg – June 6, 2014 - Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1)
today announced that it has received approximately ZAR 275 million (or $25.7 million at
prevailing exchange rates) from the South African Social Security Agency (“SASSA”), related
to the recovery of additional implementation costs incurred during the beneficiary re-
registration process in fiscal 2012 and 2013. At the time, SASSA requested Net1 to
biometrically register all social grant beneficiaries (including all child beneficiaries), in addition
to the grant recipients who were issued with the SASSA-branded UEPS/EMV smart cards. As a
result, Net1 performed approximately 11 million additional registrations that did not form part
of its monthly service fee. After an independent verification process, SASSA agreed to pay the
ZAR 275 million as full settlement of the additional costs incurred.

The decision to re-register all 21 million social grant beneficiaries has enabled SASSA, through
the use of Net1’s biometric search engine and data analysis tools, to identify and remove any
duplicate, invalid and non-existent grant recipients from the grant system. The saving to the
South African fiscus to date amounts to approximately ZAR 3 billion per annum due to the
elimination of these grants.

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
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com

Johannesburg
June 6, 2014

Sponsor:
Deutsche Securities (SA) Proprietary Limited

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