| Wed 18 Jan 2012, 11:42 | | NT1 - Net 1 UEPS Technologies Inc. - SASSA awards national tender to Net1 |
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NT1
NT1
NT1 - Net 1 UEPS Technologies, Inc. - SASSA awards national tender to Net1
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")
SASSA awards national tender to Net1
Johannesburg, South Africa, January 18, 2012 - Net 1 UEPS Technologies, Inc.
("Net1" or the "Company") (NASDAQ: UEPS, JSE: NT1) today announced that its
wholly owned subsidiary, Cash Paymaster Services (Pty) Ltd ("CPS") has
received a Letter of Award from the South African Social Security Agency
("SASSA") for the provision of payment services for social grants in all of
South Africa`s nine provinces for a period of five years. The tender award
is subject to the usual execution of a service level agreement by January
31, 2012.
"We are overjoyed by the SASSA tender award and very proud of the
confidence that SASSA has placed in our company and technology," said Dr.
Serge Belamant, Chairman and CEO of Net1. "Our biometric UEPS/EMV technology
has enabled us to provide SASSA with a comprehensive, cost effective
solution for the payment of approximately fifteen million monthly grants to
ten million recipients in rural and urban areas and we are committed to
provide the grant recipients and the South African government with the
highest level of service and security. I would like to thank all of our
employees and partners for their invaluable contribution towards the tender
outcome. This tender award emphasizes the strategic importance of our South
African operations and provides further confirmation of our business plan
that will afford us, together with our Black Empowerment initiatives that we
have been formalizing during the last few years, with the launch pad for our
future growth in Africa and other developing economies," he concluded.
Herman Kotze, CFO of Net1, commented: "Given the magnitude of the SASSA
tender award, we expect a significant impact on the group`s financial
affairs when the contract period commences as a result of new volume and
pricing, additional costs, capital expenditure and additional contractual
obligations. These may have different financial effects in the short-term
relative to the long-term benefits to the group. We will be able to provide
more detailed guidance regarding the financial effect of this tender award
when the service level agreement has been concluded and hope to provide such
detail during our next scheduled earnings call on Friday, February 10,
2012."
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. 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, Ghana and Iraq. 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, including the risk of our being able to
successfully conclude a service level agreement in a timely manner. 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
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com
Johannesburg
18 January 2012
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 18/01/2012 11:42:00 Produced by the JSE SENS Department.
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