JOHANNESBURG, South Africa, Feb. 23, 2018 (GLOBE NEWSWIRE) -- Net 1 UEPS Technologies, Inc. (“Net1” or the “Company”) (Nasdaq:UEPS) (JSE:NT1) today announced that the Constitutional Court of South Africa has ordered that Net1’s subsidiary, Cash Paymaster Services (Pty) Ltd, is not precluded from participating in SASSA’s tender process which commenced in December 2017.

On February 6, 2018, CPS launched an application with the Constitutional Court requesting a declaration that CPS is not prohibited from participating in the December 2017 tender issued by SASSA, following statements made by SASSA that it interpreted the original Constitutional Court order to preclude CPS from tendering in any future social grant distribution tenders. In its February 23, 2018, order, the Constitutional Court clarified that CPS’s eligibility to take part in future tender processes was not in issue in the application in which the judgment was handed down by it on March 17, 2017, and that judgment did not render CPS ineligible to participate in SASSA's tender process.

CPS has obtained the December 2017 SASSA tender bid documentation. The Company cannot predict the timing of the SASSA tender process, whether it will actually participate or what the outcome will be.

The Constitutional Court has also scheduled a hearing on March 6, 2018 to consider SASSA’s application for a six month extension of its contract with CPS, which expires on March 31, 2018. The application has not been opposed by any parties to the matter, although certain respondents have requested that the Constitutional Court considers further orders, including the repayment of any profits derived by CPS under the SASSA contract and a moratorium on the roll-out of Net1’s EasyPay Everywhere product.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies. The Company operates market-leading payment processors in South Africa and the Republic of Korea. Through Transact24, Net1 offers debit, credit and prepaid processing and issuing services for Visa, MasterCard and ChinaUnionPay in China and other territories across Asia-Pacific, Europe and Africa, and the United States. Through Masterpayment, Net1 provides payment processing and enables working capital financing in Europe.

UEPS permits the Company 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. Net1’s UEPS/EMV solution is interoperable with global EMV standards that seamlessly enable access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.

Net1’s mobile technologies include its proprietary mobile payments solution - MVC, which offers secure mobile-based payments, as well as mobile banking and prepaid value-added services in developed and emerging countries.

Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg Stock Exchange.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. Factors that might cause such differences include, but are not limited to: the Company’s participation in the SASSA tender process, the proposal ultimately submitted by CPS (if it chooses to participate), the outcome of the SASSA tender process, the outcome of the March 7, 2018 Constitutional Court hearings regarding the six month extension requested by SASSA, or whether the Company would be required to return any profits earned under its SASSA contract, or cease the roll-out of its EasyPay Everywhere product; and other factors, many of which are beyond the Company’s control; and other important factors included in the Company’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017, as such Risk Factors may be updated from time to time in subsequent reports. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:

Dhruv Chopra
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com

Media Relations Contact

Bridget von Holdt
Business Director – Burson-Marstellar South Africa
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com