Net1 Concludes Investments in Cell C and DNI

JOHANNESBURG, SOUTH AFRICA--(Marketwired - August 07, 2017) - Net 1 UEPS Technologies, Inc. ("Net1" or the "Company") (NASDAQ: UEPS) (JSE: NT1) today announced the completion of its 15% investment in Cell C Ltd. ("Cell C") and 45% investment in DNI-4PL Contracts (Pty) Ltd. ("DNI"). Cell C is one of the three major licensed mobile operators in South Africa with over 15 million active subscribers, and DNI is the leading distributor of mobile subscriber starter packs for Cell C, while also distributing prepaid airtime through its extensive network of field operatives and agents. Blue Label Telecoms ("BLT") also announced today that its investment of 45% in Cell C has been completed.

Strategic Rationale

Net1's mission has always been to provide a transaction processing solution for the unbanked and under-banked populations of developing economies, enabling those 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 financial services providers.

The investments in Cell C and DNI are consistent with Net1's approach of leveraging its significant and established infrastructures, and pursuing strategic acquisition opportunities or partnerships to gain access to new markets or complementary products.

Net1, Cell C and BLT have identified the need to offer customers a truly bespoke, affordable and comprehensive package that will go beyond basic telephony. An integrated mobile-based digital product will therefore likely differentiate the offerings of all the relevant stakeholders in this transaction including Net1. The Cell C and DNI investments allow us to address the needs of the broader South African population by owning the value chain including the network, payment, product, distribution and hardware.

"We are delighted to have finally concluded the investments in Cell C and DNI, and look forward to the exciting prospects that lie ahead for each of our organizations" said Herman Kotze, CEO of Net1. "Our technology, products and logistical capabilities, together with Cell C's innovative mobile competencies and customer base, and DNI's distribution network provide an ideal opportunity to deliver a comprehensive suite of mobile, transacting and financial services to a large part of the South African population. Over the past two years, Cell C's management has built a demonstrable track record of navigating through a challenging environment while reinvigorating growth. Along with Blue Label, we are proud to have been a part of the vital recapitalization process, which has cleared the way for the continued exponential growth of the business," he concluded.