NET 1 UEPS TECHNOLOGIES INC - Net1 to record non-cash fair value write-down of Cell C investment as of June 30, 2019

Net1 to record non-cash fair value write-down of Cell C investment as of June 30, 2019

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 to record non-cash fair value write-down of Cell C investment as of June
30, 2019

Johannesburg, September 19, 2019 - Net1 (NasdaqGS: UEPS; JSE: NT1) today
announced that Blue Label Telecoms Limited (JSE: BLU) (“Blue Label”), the largest
shareholder in Cell C Ltd (“Cell C”), has issued an updated trading statement
informing its shareholders that Blue Label is impairing its Cell C investments to nil
for the year ended May 31, 2019. Net1 believes that the fair value of Cell C at June
30, 2019 (Net1’s fiscal year end) is nil ($0) and expects to record a non-cash fair
value adjustment to reduce its carrying value in Cell C to nil. Net1 financial results for
the fourth quarter and year ended June 30, 2019, will be released on September 26,
2019.

As previously disclosed, Cell C is currently engaged in a comprehensive restructuring
plan with its stakeholders and Net1 remains fully supportive of this process. There
have been several positive developments in this process since June 30, 2019.

“The decisions of Net1 and Blue Label to write down the value of their respective
equity holdings do not impact Cell C’s operations, DNI’s distribution capabilities or
the proposed transactions being pursued by it,” said Herman Kotze, CEO of Net1.
“We believe that Cell C’s long-term prospects will significantly improve once it has
been recapitalized.”

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 cost synergies, liquidity and strategy 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, Cell C’s failure to successfully recapitalize
and improve its business, as well as 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, 2018, 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.

About Net1 (www.net1.com)

Net1 is a leading provider of transaction processing services, financial inclusion
products and services and secure payment technology. Net1 operates market-leading
payment processors in South Africa and the Republic of Korea. Net1 offers debit,
credit and prepaid processing and issuing services for all major payment networks. In
South Africa, Net1 provides innovative low-cost financial inclusion products,
including banking, lending and insurance and through DNI is a leading distributor of
mobile subscriber starter packs for Cell C, a South African mobile network operator.
Net1 leverages its strategic equity investments in Finbond and Bank Frick (both
regulated banks), and Cell C to introduce products to new customers and geographies.
Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing
on the Johannesburg Stock Exchange (JSE: NT1). Visit www.net1.com for additional
information about Net1.

Investor Relations Contact:

Dhruv Chopra
Group Vice President Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com

Media Relations Contact:

Bridget von Holdt
Business Director - BCW
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com

Johannesburg
September 19, 2019

Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited

Date: 19/09/2019 03:30:00
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