Net1 Elects to Withdraw From SASSA RFP

JOHANNESBURG, SOUTH AFRICA--(Marketwired - May 18, 2015) - Net 1 UEPS Technologies, Inc. ("Net1" or the "Company") (NASDAQ: UEPS) (JSE: NT1) today provided a further update on the SASSA tender process.

The Company previously reported that management was analyzing the RFP to determine whether it would be in the best interest of the Company for Cash Paymaster Services (Pty) Ltd ("CPS"), a subsidiary of the Company, to participate in the tender process or to focus on its other financial technology businesses without being a direct contractor to SASSA. Management has recommended to the Company's Board of Directors that CPS should withdraw from the SASSA tender process and the Board has accordingly agreed that CPS should not submit a bid.

Management reached this conclusion after careful consideration of all the relevant factors, including financial feasibility of the RFP, further questions raised by prospective bidders, execution of the Company's strategic plan, legal risks, reputational risk, and long term value creation for shareholders.

Management believes that the deployment of the Company business plan, which focuses on providing a comprehensive suite of transactional products and services, will allow it to service all South Africa's unbanked and under-banked citizens including social grant beneficiaries, but independently and without SASSA's limitations and constraints. The Company's business plan includes the continued successful deployment of its EasyPay Everywhere bank account, its biometric ATMs and mobile portal, its suite of financial and added value services and the Company's proven and innovative technological systems. The Company believes that these activities will ensure a sustainable business model that will, over time, far exceed the benefits that could be realized from being the successful bidder for the SASSA RFP.

In addition, the execution of the business plan will no longer be limited by a five year contract (or potentially shorter if legally challenged) and provides the Company with the ability to freely determine pricing that is both competitive and profitable and removes any unknown or contingent liabilities associated with Government contracts. In addition, the Company expects to have more management bandwidth, which it believes will fast track the Company's international expansion, specifically the many exciting opportunities that Zazoo has identified.