| Tue 2 Dec 2008, 7:30 | | NT1 - Net1 - Net1 increases footprint in Iraq |
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NT1
NT1
NT1 - Net1 - Net1 increases footprint in Iraq
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 increases footprint in Iraq
Johannesburg, South Africa, December 1, 2008 - Net 1 UEPS Technologies, Inc.
(NASDAQ: UEPS; JSE: NT1) ("Net1" or "the Company") today announced that it has
received an order for an additional 800,000 smart cards to be issued to war
victim beneficiaries and pension payment recipients. This additional order
follows the recent order of 200,000 smart cards received during October 2008.
The total cards ordered from Net1 to date amount to 1.1 million. Delivery of
the 1 million cards will be 200,000 per month between December 2008 and May
2009. Completion of cardholder registration is anticipated for June 2009.
In August 2008, Net1`s UEPS system was implemented in Iraq and is used for the
distribution and payment of government grants to war victims and martyrdom
beneficiaries, as well as salary and wage distribution and payment to
employees of the two state banks. The pilot system was successful and for the
first time in history the two state banks are opening their doors to the
public seven days a week to cater for the flood of beneficiaries wanting to
register for their smart cards.
Brenda Stewart, Net1 Senior Vice President Sales and Marketing, said "We are
really excited and proud of the commitment displayed by both the Iraqi and
Net1 teams. This additional order is the result of the successful pilot system
deployed during the month of September 2008."
"Iraq is virgin territory for the UEPS and we look forward to Phase 2
implementation which involves the rollout of the POS terminals into merchant
stores, the commencement of electronic bill payments, money transfers, loan
deductions, cash advances and traditional banking functionality. The UEPS
enables countries to tap into the un-banked markets, encourage savings,
allowing the banks to re-invest the monies deposited and in-turn grant
affordable loans to the small and medium term businesses assisting towards the
growth of the economy" Stewart 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 factors 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
December 2, 2008
Sponsor to Net1
Deutsche Securities (SA) (Proprietary) Limited
Date: 02/12/2008 07:30:01 Produced by the JSE SENS Department.
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