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NET 1 UEPS TECHNOLOGIES INC - Acquires Significant Minority Stake in Transact24 Group

Release Date: 28/05/2015 14:30
Code(s): NT1     PDF:  
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Acquires Significant Minority Stake in Transact24 Group

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 Acquires Significant Minority Stake in Transact24 Group

Johannesburg, May 28, 2015 – Net 1 UEPS Technologies, Inc. (NasdaqGS: UEPS;
JSE: NT1) today announced that it has acquired a 43.88% interest in Transact24
Limited (“T24”), a specialist Hong Kong-based payment services company.

T24’s primary business activities include:
   - Chinese debit card acquiring – T24 has processing relationships with China
     UnionPay, AliPay and five other Chinese gateways;
   - Credit card acquiring – T24 has acquiring relationships with banks and
     processing institutions in the UK, Germany, Australia and Mauritius. T24
     also offers a white-labeled credit card acquiring gateway to entities who wish
     to outsource the technical integration and operations of their acquiring
     gateways;
   - Automated clearing house (“ACH”) processing – T24 provides unsecured
     loan ACH processing for Tribal and State-licensed lenders in the USA;
   - Prepaid card issuing and processing – T24 issues US Dollar-denominated
     Visa prepaid cards, South African Rand-denominated MasterCard prepaid
     cards and Hong Kong Dollar-denominated China UnionPay prepaid cards.

“T24's businesses are all complementary to Net1’s existing products and will further
expand our product suite and geographic reach accordingly,” said Dr. Serge
Belamant, Chairman and CEO of Net1. “The T24 management team has a wealth of
experience in transaction processing, and will provide us with specialist marketing
business development resources to expand the adoption of the Net1 product range
including our Mobile Virtual Card product. T24 also provides Net1 with an entry into
the rapidly growing Chinese e-commerce and transaction processing markets through
its established relationships with China UnionPay and AliPay,” he concluded.

“We are delighted to have Net1 as a significant shareholder in the T24 group,” said
Philip Meyer, CEO and co-founder of T24. “We are excited about the prospects of
expanding our product range and markets, and to assist Zazoo with the roll-out of its
revolutionary VCPay product,” he concluded.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal
Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors in South Africa and the
Republic of Korea.

UEPS permits the Company 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 interoperable with global EMV standards that seamlessly enable 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's mobile technologies include its proprietary mobile payments solution - MVC,
which offers secure mobile-based payments, as well as mobile banking and prepaid
value-added services in developed and emerging countries. The Company intends to
deploy its varied mobile solutions through its Zazoo business unit, which is an
aggregation of innovative technology companies and is based in the United Kingdom.

Net1 has a primary listing on the NASDAQ and a secondary listing on the
Johannesburg Stock Exchange.

About T24 (www.transact24.com)

T24 is a Hong Kong-based Payment Services Company, established in 2006, with
offices and/or satellite entities in Australia, Singapore, China, Mauritius, South
Africa, Austria, Gibraltar, the USA and the UK.

T24’s payment services products include Chinese Debit Card and Credit Card
Acquiring; ACH processing; and Prepaid Card Issuance and Prepaid Card Program
Management. T24 owns the IP for all its processing systems and all its systems are
PCI DSS Level 1 compliant.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks
and uncertainties. All statements, other than statements of historical fact, included in
this press release regarding strategy, future operations, future financial position, future
revenues, projected costs, prospects, plans and objectives of management are forward-
looking statements. The Company may not actually achieve the plans, intentions or
expectations disclosed in its forward-looking statements. Actual results or events
could differ materially from the plans, intentions and expectations disclosed in the
forward-looking statements that the Company makes. Factors that might cause such
differences include, but are not limited to: the possibility that the expected synergies
from the transaction will not be realized, or will not be realized within the expected
time period; disruption from the transaction making it more difficult to maintain
business and operational relationships; and other factors, many of which are beyond
the Company’s control; and other important factors included in the Company’s
reports filed with the Securities and Exchange Commission, particularly in the “Risk
Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year
ended June 30, 2014, as such Risk Factors may be updated from time to time in
subsequent reports. The Company does not assume any obligation to update any
forward-looking statements, whether as a result of new information, future events or
otherwise.

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

Johannesburg
May 28, 2015

Sponsor:
Deutsche Securities (SA) Proprietary Limited

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