| Mon 13 Oct 2008, 8:50 | | NT1 - Net 1 UEPS Technologies Inc - Net1 provides |
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NT1
NT1
NT1 - Net 1 UEPS Technologies, Inc - Net1 provides additional update on SASSA
process
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 provides additional update on SASSA process
Johannesburg, South Africa, October 10, 2008 - Net 1 UEPS Technologies, Inc.
(NASDAQ: UEPS; JSE: NT1) ("Net1" or the "Company") today announced that it has
received Bidders Notice number 11 from the South African Social Security Agency
("SASSA"), advising bidders that the Bid Adjudication Committee has submitted
its report and recommendations in respect of the Payment Service Tender to the
Chief Executive Officer ("CEO") of SASSA. The Bid Adjudication Committee has
recommended to the Chief Executive Officer of SASSA that no award be made in
respect of the tender and that a fresh tender process be commenced, as the Bid
Evaluation Committee concluded that the evaluation process followed has been
unreliable. According to the Bidders Notice, the CEO of SASSA has to decide
whether he will accept the recommendations of the Bid Adjudication Committee, or
propose a different course of action.
"The recommendation of the Bid Adjudication Committee is not unexpected, given
the long delays already suffered during the evaluation process," said Dr. Serge
Belamant, Chairman and CEO of Net1. "We await the CEO of SASSA`s final decision,
which we expect will occur during the next few weeks. In the mean time, we will
continue to render our high-quality service in terms of our current service
level agreements. Should the tender process be cancelled, we believe that our
current service level agreements will have to be extended again and we foresee
no difficulties in continuing our activities," he concluded.
About Net1 (www.net1ueps.com)
Net1 provides its universal electronic payment system ("UEPS"), as an
alternative payment system for the unbanked and under-banked populations of
developing economies. The company believes that it is the first company
worldwide to implement a system that can enable the estimated four billion
people who generally have limited or no access to a bank account to enter
affordably into electronic transactions with each other, government agencies,
employers, merchants and other financial service providers. To accomplish this,
Net1 has developed and deployed the UEPS. This system uses secure smart cards
that operate in real-time but offline, unlike traditional payment systems
offered by major banking institutions that require immediate access through a
communications network to a centralized computer. This offline capability means
that users of Net1`s system can enter into transactions at any time with other
cardholders in even the most remote areas so long as a portable offline smart
card reader is available. In addition to payments and purchases, Net1`s system
can be used for banking, health care management, international money transfers,
voting and identification.
Net1 also focuses on the development and provision of secure transaction
technology, solutions and services. Its core competencies around secure online
transaction processing, cryptography and integrated circuit card (chip/smart
card) technologies are principally applied to electronic commerce transactions
in the telecommunications, banking, retail, petroleum and utilities market
sectors. These technologies form the cornerstones of the "trusted transactions"
environment of Prism, a South African based subsidiary of the company, and
provide the Company with the building blocks for developing secure end-to-end
payment solutions.
Net1 recently acquired 80.1% of BGS Smartcard System AG ("BGS"), an Austrian
company, whose core business consists of developing and integrating smart card-
based offline and online financial transaction systems. Since 1993, BGS has
implemented tailor-made smart card-based payment solutions, focusing on emerging
economies and in cooperation with banks, enterprises and government authorities.
BGS is headquartered in Vienna, Austria, and has subsidiaries in India and
Russia, and a branch office in the Ukraine. Distributors are located in Asia,
Central and South America, the Commonwealth of Independent States and the Middle
East.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and
unknown risks and uncertainties. A discussion of various factors that could
cause the Company`s actual results, levels of activity, performance or
achievements to differ materially from those expressed in such forward-looking
statements are included in the Company`s filings with the Securities and
Exchange Commission including the risk factor entitled "The South African Social
Security Agency, or SASSA, is in the process of conducting a national tender for
the distribution of welfare grants in which bidders had the opportunity to bid
for all of South Africa or on a province-by-province basis. If we were not to
receive contracts to continue to distribute these grants in each of the
provinces where we currently distribute them, or if we do win these contracts,
but the terms are not as favorable to us as our current contracts, our financial
condition, results of operations and cash flows would be materially and
adversely affected," contained in our Annual Report on Form 10-K for the year
ended June 30, 2008. The Company undertakes no obligation to revise any of these
statements to reflect future circumstances or the occurrence of unanticipated
events.
Contact William Espley at Net1 Investor Relations at:
Telephone: 1-604-484-8750
Toll Free: 1-866-412-NET1 (6381)
Johannesburg
13 October 2008
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 13/10/2008 08:50:02 Produced by the JSE SENS Department.
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