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|Net 1 Makes Further Statement Regarding U.S. Government Investigations|
Dec 05, 2012 (Marketwire via COMTEX) --Net 1 UEPS Technologies Inc. (NASDAQ:UEPS)(JSE:NT1). On December 4, 2012, we made public disclosure through a filing with the Securities and Exchange Commission ("SEC") that we have received letters from the U.S. Department of Justice, Criminal Division ("DOJ") and the SEC informing us that they are conducting investigations concerning our company. We recognize that the announcement of these investigations raises questions and concerns about our company and our SASSA contract.
As a preliminary matter, we believe that it is important to note that these investigations are investigations and not findings of wrongdoing on the part of any person and that we are fully cooperating with the investigations.
We want to assure our stakeholders that we are continuing to provide the South African government with our payment delivery service to the millions of South Africans who depend on us to deliver their social security grants in a timely and efficient manner and that we have no reason to believe that these investigations will impact our ability to continue to do so.
These investigations appear to be directed at matters which are similar to those that were the subject of articles which appeared in various South African newspapers after AllPay Consolidated Investment Holdings (Pty) Limited ("AllPay") instituted legal proceeding in the South African courts to set aside the contract awarded to us in January 2012 by SASSA. AllPay was an unsuccessful bidder for the SASSA contract. The litigation and allegations are summarized below.
As is customary, we do not intend to comment further until the investigations have been concluded.
About Net1 (www.net1.com)
We are a leading provider of alternative payment systems that leverage our 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.
We operate market-leading payment processors in South Africa, Republic of Korea, Ghana and Iraq. In addition, our proprietary Mobile Virtual Card technology offers secure mobile payments and banking services in developed and emerging countries.
We have a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. 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.
Net 1 UEPS Technologies Inc. Dhruv Chopra Vice President of Investor Relations +1-212-626-6675 firstname.lastname@example.org www.net1.com