Net1 Applied Technology Holdings Limited ("Aplitec") is pleased to announce
that its 100% owned subsidiary, Cash Paymaster Services (Pty) Ltd ("CPS")
has been awarded a substantial portion of the Eastern Cape Pension and
Welfare tender through CPS Eastern Cape (Pty) Ltd, a local joint venture
between CPS and a number of empowerment partners.
The solution proposed to the Eastern Cape regional government will utilise
Aplitec's secure payment technologies to distribute social security grants
to an estimated 300 000 to 400 000 pensioners. The value of the core
business of this three-year contract is estimated at between R200 and R300
million. The final number of pensioners serviced is dependent on the final
geographical area allocated to the joint venture, which will be announced
within the next few weeks.
Aplitec's technology will now be used to service more than two million users
in five provinces, which represents more than 70% of the pension and welfare
business in South Africa. Aplitec's proprietary solution will ensure that
all pensioners are provided with access to a myriad of financial and other
products and services that will assist in the upliftment of their lifestyle.
The first year of operation in the Eastern Cape will focus on the creation
of a registration and payment infrastructure that will include up to 1593
new service points and the appointment and training of over three hundred
new staff members. As a result, this tender will temporarily erode on
Aplitec's earnings growth in the next twelve months as announced at
Aplitec's 2001 annual presentations in Cape Town and Johannesburg. The
ensuing two years, however, should provide strong earnings growth from the
core business as well as the derivative revenue streams that can be
generated from the acquisition and servicing of such a large client base.
The faith demonstrated by the Eastern Cape Government in awarding this
tender to CPS Eastern Cape (Pty) Ltd., will allow Aplitec to continue to
migrate more and more South Africans to its smart card payment system that
is fast becoming a global industry standard.
For further information please contact Serge Belamant (CEO) or Herman Kotze
(FD) at 343-2001.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
