Net 1 UEPS Technologies Implements UEPS-Universal Electronic Payment System

The system allows all our cardholders to load their social security grants or salaries onto their smart cards at any participating merchant. Once their smart cards have been loaded, cardholders have the flexibility to either purchase goods and/or make cash withdrawals offline. The support from merchants in South Africa has been overwhelming and contracts have been signed with merchants in rural, semi-urban and urban areas, including large chain stores. Benefits to merchants include: - increased turnover from a growing smart card client base, - reduced banking charges, - reduced communication costs, - reduced reconciliation problems, and - minimization of the risks associated with fraud and theft. Merchants can also generate new income streams for themselves by selling our comprehensive range of financial products. The initial launch of the UEPS retail application commenced during March 2004 in selected areas of the Northern Cape and KwaZulu Natal provinces to pilot the concept and gauge acceptance levels. This was followed by an aggressive marketing campaign and rollout which commenced in September 2004. At the end of February 2005, a total number of 2,053 point of sale terminals have been installed in merchant stores. The total value spent in these stores since inception amounts to approximately US$41million (ZAR 241.1 million). Net1 generates transaction, rental and processing fees from all merchants and transaction fees from card holders who do not receive social security grants.