Net 1 UEPS Technologies, Inc. Announces Third Quarter 2008 Results

JOHANNESBURG, South Africa, May. 08 /PRNewswire/ --

JOHANNESBURG, South Africa, May 8 /PRNewswire-FirstCall/ -- Net 1 UEPS Technologies, Inc. ("Net1" or the "Company") today announced results for the three and nine months ended March 31, 2008.

Results Three months ended March 31, 2008 and 2007 GAAP GAAP GAAP Fundamental Fundamental Fundamental Q3 Q3 Variance Q3 Q3 Variance 2008(1) 2007(2) % 2008(3) 2007(3) % Net income (USD'000) 26,967 18,253 48% 23,012 19,323 19% Earnings per share, basic (US cents) 47 32 47% 40 34 18% Revenue (USD'000) 63,066 61,275 3% 63,066 61,275 3% (1) GAAP Q3 2008 net income and earnings per share, basic, include the positive effect of the change in the fully distributed tax rate from 36.89% to 35.45%. (2) GAAP Q3 2007 net income, earnings per share, basic and revenue, include the positive effect of the non-recurring payment received from the South Africa Social Security Agency ("SASSA"). (3) Fundamental net income and earnings per share is GAAP net income and earnings per share excluding the amortization of acquisition-related intangible assets, net of deferred taxes, stock-based compensation charges and the effect of the change in the fully distributed tax rate from 36.89% to 35.45%.

Since the Company's reporting currency is the U.S. dollar ("USD") but its functional currency is the South African rand ("ZAR"), and due to the impact of currency fluctuations between the USD and the ZAR on the Company's results of operations, the Company also analyzes its results of operations in ZAR to assist investors in understanding the changes in the underlying trends of its business. During the three months ended March 31, 2008, the USD was stronger against the ZAR than during the same period in the prior year. During the nine months ended March 31, 2008, the ZAR was stronger against the USD than during the same period in the prior year. The impact of these changes on results of operations is shown under the column "Change" in the tables of key metrics included in Attachment A at the end of this press release.

GAAP GAAP GAAP Fundamental Fundamental Fundamental Q3 Q3 Variance Q3 Q3 Variance 2008(1) 2007(2) % 2008(3) 2007(3) % Net income (ZAR'000) 199,874 131,586 52% 170,561 139,300 22% Earnings per share, basic (ZAR cents) 350 231 51% 298 245 22% Revenue (ZAR'000) 467,432 441,731 6% 467,432 441,731 6% (1) GAAP Q3 2008 net income and earnings per share, basic, include the positive effect of the change in the fully distributed tax rate from 36.89% to 35.45%. (2) GAAP Q3 2007 net income, earnings per share, basic and revenue, include the positive effect of the non-recurring payment received from the South Africa Social Security Agency ("SASSA"). (3) Fundamental net income and earnings per share is GAAP net income and earnings per share excluding the amortization of acquisition-related intangible assets, net of deferred taxes, stock-based compensation c charges and the effect of the change in the fully distributed tax rate from 36.89% to 35.45%. Nine months ended March 31, 2008 and 2007 GAAP GAAP GAAP Fundamental Fundamental Fundamental YTD YTD Variance YTD YTD Variance 2008 2007 % 2008 2007 % Net income (USD'000) 65,213 46,148 41% 65,346 50,720 29% Earnings per share, basic (US cents) 114 81 41% 114 89 28% Revenue (USD'000) 191,825 163,772 17% 191,825 163,772 17% GAAP GAAP GAAP Fundamental Fundamental Fundamental YTD YTD Variance YTD YTD Variance 2008 2007 % 2008 2007 % Net income (ZAR'000) 465,008 334,255 39% 465,950 367,392 27% Earnings per share, basic (ZAR cents) 814.0 587.0 39% 816 645 27% Revenue (ZAR'000) 1,367,825 1,186,218 15% 1,367,825 1,186,218 15%

Non-recurring settlement payment received from SASSA in the third quarter of fiscal 2007

During the third quarter of fiscal 2007, the Company received a non- recurring settlement payment of approximately $5.9 million (ZAR 43.0 million) from SASSA as a result of the settlement of contract deviations that occurred during the implementation phases in the Eastern Cape province and for annual inflation price increases over the last three years which were not forthcoming. Attachment C presents the impact of the non-recurring settlement payment on the Company's reported revenues, operating income and net income. Attachment D presents the impact of the non-recurring settlement payment on the Company's reported transaction-based activities revenues, operating income and operating income margin.

Use of Non-GAAP measures

On July 3, 2006, the Company acquired Prism Holdings Limited ("Prism") and has combined its results with those of the Company. Effective October 1, 2006, Prism acquired the remaining 25.1% of EasyPay (Pty) Ltd ("EasyPay"). Under U.S. generally accepted accounting principles ("GAAP"), the Company is required to fair value all intangible assets on the date of acquisition and amortize these intangible assets over their expected useful lives. In addition, under GAAP, the Company is required to measure the fair value of options and other stock-based awards and recognize a stock-based compensation charge over the requisite service period. The Company's GAAP net income and earnings per common share and linked unit for the three and nine months ended March 31, 2008 and 2007 include this amortization of Prism and EasyPay intangibles acquired and stock-based compensation charge related to these options and other stock-based awards. Finally, the effect of the change in the fully distributed tax rate from 36.89% to 35.45% in January 2008 is included in the Company's net income and earnings per common share and linked unit for the three and nine months ended March 31, 2008. The Company excludes these items when calculating fundamental net income and earnings per common share and linked unit because management believes that these adjustments enhance its own evaluation, as well as the investor's understanding, of the Company's performance. Attachment B presents a reconciliation between GAAP and fundamental net income and earnings per common share and linked unit.

Third Quarter Highlights -- Conclusion of an agreement to provide an Iraqi consortium the Company's UEPS system which will generate ongoing transaction and license fees, as well as revenue related to the provision of outsourcing services and the sale of hardware; -- Extension of the Company's five existing contracts to provide welfare administration and distribution services by 12 months to March 31, 2009; -- Delivery of hardware and recognition of additional software development and customization revenues related to the Ghanaian National Switch and Smart Card Payment System contract; -- Reduction in the Company's fully distributed tax rate from 36.89% to 35.45%; -- Merchant acquiring system transactions increased 11% to $264.5 million in the third quarter of fiscal 2008 from $238.0 million in the third quarter of fiscal 2007; -- 11,892,573 grants were paid during the three months ended March 31, 2008 compared to 11,410,296 grants during the three months ended March 31, 2007; -- 4,222 terminals in use at participating UEPS retail locations at March 31, 2008 versus 4,179 terminals at March 31, 2007, which increase resulted largely from the broadening of the terminal base in the North West province; -- The number of transactions processed per terminal during the third quarter of fiscal 2008 as compared to the prior period increased 9% to 917 from 845; -- A total of 3,956,882 UEPS smart card-based accounts were active as of March 31, 2008, compared to 3,803,150 as of March 31, 2007; and -- EasyPay processed 129,152,205 transactions during the three months ended March 31, 2008 compared to 108,803,479 transactions during the three months ended March 31, 2007, in each case at an average fee per transaction of $0.03.

Comments and Outlook

"I am delighted to report yet another quarter that has exceeded our expectations, where our operations continued to deliver solid financial results and cash flows and we remain on track to achieve our targeted growth rate for the current fiscal year," said Dr. Serge Belamant, Chairman and Chief Executive Officer of Net1. "I am particularly pleased with the conclusion of the contract between Net1 and a consortium comprising the Iraqi government and local Iraqi banks as this further demonstrates the robustness and applicability of our technology. The Ghanaian National Switch, known locally as e-zwich, was officially launched by the President of Ghana last week and we are extremely proud to have reached this significant milestone. I believe the success of e-zwich in Ghana will lead to similar contracts in the surrounding territories," he concluded.

Conference call

Net1 will host a conference call to review third quarter results on May 9, 2008 at 8:00 a.m. Eastern Daylight Time. To participate in the call, dial 1- 800-860-2442 (U.S. only), 1-866-519-5086 (Canada only), 0-800-917-7042 (U.K. only) or 0-800-200-648 (South Africa only) five minutes prior to the start of the call. Callers should request "Net1 call" upon dial-in. The call will also be webcast on the Net1 homepage, www.net1ueps.com. Please click on the webcast link at least 10 minutes prior to the call. A webcast of the call will be available for replay on the Net1 website through May 30, 2008.

About Net1 (www.net1ueps.com)

Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. The Company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people 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 other financial service providers. To accomplish this, the Company has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer. This offline capability means that users of Net1's system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1's system can be used for banking, health care management, international money transfers, voting and identification.

The Company also focuses on the development and provision of secure transaction technology, solutions and services. The Company's core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors. These technologies form the cornerstones of the "trusted transactions" environment of Prism, a South African based subsidiary of the Company, and provide the Company with the building blocks for developing secure end-to-end payment solutions.

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that could cause the Company's actual results levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

NET 1 UEPS TECHNOLOGIES, INC. Unaudited Condensed Consolidated Statements of Operations Three months Nine months ended ended March 31, March 31, 2008 2007 2008 2007 (In thousands, (In thousands, except per share except per share data) data) REVENUE $63,066 $61,275 $191,825 $163,772 EXPENSE COST OF GOODS SOLD, IT PROCESSING, SERVICING AND SUPPORT 16,515 13,940 51,833 38,185 SELLING, GENERAL AND ADMINISTRATION 15,185 15,515 48,915 44,690 DEPRECIATION AND AMORTIZATION 2,716 2,752 8,295 8,512 OPERATING INCOME 28,650 29,068 82,782 72,385 INTEREST INCOME, net 3,754 735 10,852 2,793 INCOME BEFORE INCOME TAXES 32,404 29,803 93,634 75,178 INCOME TAX EXPENSE 5,156 11,397 27,816 28,927 NET INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND (LOSS) EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS 27,248 18,406 65,818 46,251 MINORITY INTEREST - - (196) 205 (LOSS) EARNINGS FROM EQUITY ACCOUNTED INVESTMENTS (281) (153) (801) 102 NET INCOME $26,967 $18,253 $65,213 $46,148 Net income per share Basic earnings, in cents - common stock and linked units 47.2 32.1 114.1 81.1 Diluted earnings, in cents - common stock and linked units 46.7 31.8 113.1 80.3 NET 1 UEPS TECHNOLOGIES, INC. Condensed Consolidated Balance Sheets Unaudited (A) March 31, June 30, 008 2007 (In thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $235,630 $171,727 Pre-funded social welfare grants receivable 24,348 26,817 Accounts receivable, net of allowances of - March: $345; June: $555 24,767 30,503 Finance loans receivable, net of allowances of - March: $2,667; June: $2,773 4,930 5,755 Deferred expenditure on smart cards - 507 Inventory 5,106 5,645 Deferred income taxes 4,049 7,028 Total current assets 298,830 247,982 LONG-TERM RECEIVABLE 1 54 PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION OF - March: $23,728; June: $24,406 6,426 7,582 EQUITY-ACCOUNTED INVESTMENTS 2,521 2,992 GOODWILL 74,945 85,871 INTANGIBLE ASSETS, NET OF ACCUMULATED AMORTIZATION OF - March: $16,650; June: $13,745 23,146 31,609 TOTAL ASSETS 405,869 376,090 LIABILITIES CURRENT LIABILITIES Bank overdraft - 16 Accounts payable 5,320 5,879 Other payables 44,779 34,457 Income taxes payable 13,581 14,346 Total current liabilities 63,680 54,698 DEFERRED INCOME TAXES 29,955 36,219 INTEREST BEARING LIABILITIES - minority interest loans 4,276 4,100 COMMITMENTS AND CONTINGENCIES - - TOTAL LIABILITIES 97,911 95,017 SHAREHOLDERS' EQUITY COMMON STOCK Authorized: 83,333,333 with $0.001 par value; Issued shares - March: 52,950,885; June: 52 52 51,730,547 SPECIAL CONVERTIBLE PREFERRED STOCK Authorized: 50,000,000 with $0.001 par value; Issued and outstanding shares - March: 5 5 5,088,885; June: 5,656,110 B CLASS PREFERENCE SHARES Authorized: 330,000,000 with $0.001 par value; Issued and outstanding shares (net of shares held by the Company) - March: 37,497,073; June: 41,676,625 6 7 ADDITIONAL PAID-IN-CAPITAL 115,203 112,167 TREASURY SHARES, AT COST: March: 299,821; June: 299,821 (7,795) (7,795) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (44,783) (3,915) RETAINED EARNINGS 245,270 180,552 TOTAL SHAREHOLDERS' EQUITY 307,958 281,073 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 405,869 $376,090 (A) - Derived from audited financial statements NET 1 UEPS TECHNOLOGIES, INC. Unaudited Condensed Consolidated Statements of Cash Flows Three months Nine months ended ended March 31, March 31, 2008 2007 2008 2007 (In thousands) (In thousands) Cash flows from operating activities Net income $ 26,967 $ 18,253 $ 65,213 $ 46,148 Depreciation and amortization 2,716 2,752 8,295 8,512 Loss (Earnings) from equity- accounted investments 281 153 801 (102) Fair value adjustment related to financial liabilities (14) 25 (256) 178 Fair value of FAS 133 derivative adjustments (11) (58) (21) 19 Interest payable 126 110 367 110 Profit on disposal of property, plant and equipment (23) (58) (109) (125) Minority interest - - (196) 205 Stock-based compensation charge 1,108 190 2,860 686 (Increase) Decrease in accounts receivable, pre-funded social welfare grants receivable and finance loans receivable 15,842 (32,566) (2,406) (35,118) Decrease in deferred expenditure on smart cards 236 (61) 496 133 Decrease (Increase) in inventory 1,286 210 (293) (2,543) (Decrease) Increase in accounts payable and other payables 13,177 11,436 13,490 490 Decrease in taxes payable 7,666 5,649 1,034 2,271 Increase (Decrease) in deferred taxes (4,182) (1,898) 574 (1,745) Net cash (used in) provided by operating activities 65,175 4,137 89,849 19,119 Cash flows from investing activities Capital expenditures (1,004) (943) (2,880) (2,646) Proceeds from disposal of property, plant and equipment 24 116 142 262 Acquisition of Prism Holdings Limited, net of cash acquired - (9,713) - (92,043) Acquisition of equity interest in and advance of loans to equity accounted investment - (310) - (310) Net cash used in investing activities (980) (10,850) (2,738) (94,737) Cash flows from financing activities Proceeds from issue of share capital, net of share issue expenses 25 - 175 50 Proceeds from bank overdrafts - 148 1,462 61,731 Repayment of bank overdraft (1) - (1,443) (62,272) Proceeds from interest bearing liabilities - - - 3,513 Net cash provided by financing activities 24 148 194 3,022 Effect of exchange rate changes on cash (29,330) (2,447) (23,402) 1,751 Net (decrease) increase in cash and cash equivalents 34,889 (9,012) 63,903 (70,845) Cash and cash equivalents - beginning of period 200,741 127,902 171,727 189,735 Cash and cash equivalents - end of period $235,630 $118,890 $235,630 $118,890 Net 1 UEPS Technologies, Inc. Attachment A

Key metrics and statistics at and for the three months ended March 31, 2008 and 2007 and December 31, 2007:

Three months ended March 31, 2008 and 2007 and December 31, 2007 Key statement of operations data, in '000, except EPS Change - constant Change-actual exchange rate(1) Q3 '08 Q3 '08 Q3 '08 Q3 '08 Q3 '08 Q3 '07 Q2 '08 vs vs vs vs USD USD USD Q3 '07 Q2 '08 Q3 '07 Q2 '08 Revenue $63,066 $61,275 $68,500 3% (8)% 6% 1% Operating income 28,650 29,068 28,226 (1)% 2% 1% 11% Income tax expense 5,156 11,397 11,788 (55)% (56)% (53)% (52)% Net income $26,967 $18,253 $20,318 48% 33% 52% 45% Earnings per share, Basic (cents) 47 32 36 47% 31% 51% 43% Diluted (cents) 47 32 35 47% 34% 51% 47% Fundamental earnings per share, Basic (cents) 40 34 39 18% 3% 21% 12% Key segmental data, in '000, except margins Revenue: Transaction- based activ- ities $37,254 $40,962 $39,991 (9)% (7)% (6)% 2% Smart card accounts 8,696 8,655 9,637 -% (10)% 3% (1)% Financial services 1,999 2,858 2,135 (30)% (6)% (28)% 2% Hardware, software and related technology sales 15,117 8,800 16,737 72% (10)% 77% (1)% Total consolidated revenue $63,066 $61,275 $68,500 3% (8)% 6% 1% Consolidated operating income (loss): Transaction- based activ- ities $20,347 $24,869 $21,381 (18)% (5)% (16)% 4% Smart card accounts 3,953 3,934 4,380 -% (10)% 3% (1)% Financial services 507 930 458 (45)% 11% (44)% 21% Hardware, software and related technology sales 5,380 991 2,265 443% 138% 458% 160% Corporate/ Eliminat- ions (1,537) (1,656) (258) (7)% 496% (5)% 552% Total operating income $28,650 $29,068 $28,226 (1)% 2% 1% 11% Operating income margin (%) Transaction- based activities 55% 61% 53% Smart card accounts 45% 45% 45% Financial services 25% 33% 21% Hardware, software and related technology sales 36% 11% 14% Overall operating margin 45% 47% 41% Mar 31, June 30, 2008 2007 Change Key balance sheet data, in '000 Cash and cash equivalents $235,630 $171,727 37% Total current assets 298,830 247,982 21% Total assets 405,869 376,090 8% Total current liabilities 63,680 54,698 16% Total shareholders' equity $307,958 $281,073 10% (1) This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the third quarter of fiscal 2008 also prevailed during the third quarter of fiscal 2007 and the second quarter of fiscal 2008. Three months ended March 31, 2008 and 2007 and December 31, 2007 (continued) Change Q3 '08 Q3 '08 Additional vs vs information: Q3 '08 Q3 '07 Q2 '08 Q3 '07 Q2 '08 Transaction-based activities: Total number of grants paid: KwaZulu-Natal 5,051,827 5,079,328 5,063,374 (1)% -% Limpopo 2,949,459 2,925,621 2,948,717 1% -% North West 1,245,238 833,683 1,230,354 49% 1% Northern Cape 494,664 417,990 498,874 18% (1)% Eastern Cape 2,151,385 2,153,674 2,155,433 -% -% 11,892,573 11,410,296 11,896,755 4% -% Average revenue per ZAR ZAR ZAR grant paid: KwaZulu-Natal 21.76 19.35 22.11 12% (2)% Limpopo 18.32 16.19 17.39 13% 5% North West 22.19 21.19 21.43 5% 4% Northern Cape 20.26 18.62 18.37 9% 10% Eastern Cape 16.56 12.89 16.11 28% 3% UEPS merchant acquiring system: Terminals installed at period end 4,222 4,179 4,304 1% (2)% Number of participating retail locations at period end 2,468 2,511 2,532 (2)% (3)% Value of transactions processed through POS devices during the quarter (in ZAR '000) 1,996,072 1,726,532 1,757,836 16% 14% Value of transactions processed through POS devices during the completed pay cycles for the quarter (in ZAR '000) 2,022,938 1,634,410 1,870,595 24% 8% Average number of grants processed per terminal during the quarter 917 845 799 9% 15% Average number of grants processed per terminal during the completed pay cycles for the quarter 933 807 851 16% 10% EasyPay transaction fees: Number of transactions processed 129,152,205 108,803,479 135,283,353 19% (5)% Average fee per transaction (in ZAR) 0.20 0.21 0.21 (5)% (5)% Three months ended March 31, 2008 and 2007 and December 31, 2007 (continued) Change Q3 '08 Q3 '08 vs vs Q3 '08 Q3 '07 Q2 '08 Q3 '07 Q2 '08 Smart card accounts: Total number of smart card accounts 3,956,882 3,803,150 3,976,684 4% -% Hardware, software and related technology sales: Ad hoc significant hardware sales (USD '000) Nedbank hardware 600 - 2,000 n/m Ghanaian National Switch and Smart Card Payment System Contract 4,300 - 5,600 n/m Smartswitch Botswana hardware and software (before consolidation adjustments) - - - Financial services: (USD '000) Traditional microlending: Finance loans receivable - gross 4,611 7,112 5,336 (35)% (14)% Allowance for doubtful finance loans receivable (2,667) (4,359) (3,153) (39)% (15)% Finance loans receivable - net 1,944 2,753 2,183 (29)% (11)% UEPS-based lending: Finance loans receivable - net and gross (i.e., no provisions) 2,986 3,457 4,086 (14)% (27)% Earnings (Loss) from equity accounted investments: (USD '000) Beginning of period (2,352) 1,169 (2,112) Equity-accounted earnings (loss) (281) (153) (236) Equity-accounted earnings - Permit 16 306 - Equity-accounted earnings (loss) - SmartSwitch Namibia(1) (71) (74) (6) Equity-accounted earnings (loss) - SmartSwitch Botswana(1) (164) (128) (31) Equity-accounted (loss) - VTU Colombia (62) (257) (168) Equity-accounted (loss) - VinaPay (281) - (31) Sale of Permit - - Foreign currency adjustment 244 (25) (4) End of period (2,389) 991 (2,352) nm - Statistic not meaningful

Key metrics and statistics at and for the nine months ended March 31, 2008 and 2007:

Nine months ended March 31, 2008 and 2007 Nine months ended Mar 31, Change Year ended Constant June 30, 2008 2007 Exchange 2007 USD USD Actual Rate (1) USD Key statement of operations data, in '000, except EPS Revenue $191,825 $163,772 17% 15% $223,968 Operating income 82,782 72,385 14% 13% 96,876 Income tax expense 27,816 28,927 (4)% (5)% 37,574 Net income $65,213 $46,148 41% 39% $63,679 Earnings per share, Basic (cents) 114 81.1 41% 38% 112 Diluted (cents) 113 80.3 41% 39% 111 Fundamental earnings per share, Basic (cents) 114 89.1 28% 26% 123 Key segmental data, in '000, except margins Revenue: Transaction-based activities $115,409 $103,172 12% 10% $139,006 Smart card accounts 27,469 25,722 7% 5% 34,562 Financial services 6,317 8,636 (27)% (28)% 11,241 Hardware, software and related technology sales 42,630 26,242 62% 60% 39,159 Total consolidated revenue $191,825 $163,772 17% 15% $223,968 Consolidated operating income (loss): Transaction-based activities $62,317 $60,799 2% 1% $78,785 Smart card accounts 12,485 11,692 7% 5% 15,710 Financial services 1,411 2,758 (49)% (50)% 3,351 Hardware, software and related technology sales 9,585 2,621 266% 260% 6,115 Corporate/ Eliminations (3,016) (5,485) (57)% (46)% (7,085) Total operating income $82,782 $72,385 14% 13% $96,876 Operating income margin (%) Transaction-based activities 53% 59% 57% Smart card accounts 45% 45% 45% Financial services 22% 32% 30% Hardware, software and related technology sales 23% 10% 16% Overall operating margin 43% 44% 43% Mar 31, June 30, 2008 2007 Change Key balance sheet data, in '000 Cash and cash equivalents $235,630 $171,727 37% Total current assets 298,830 247,982 21% Total assets 405,869 376,090 8% Total current liabilities 63,680 54,698 16% Total shareholders' equity $307,958 $281,073 10% (1) -- This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the nine months ended March 31, 2008 also prevailed during the nine months ended March 31, 2007. Nine months ended March 31, 2008 and 2007 (continued) Nine months ended Year ended Mar 31, Change June 30, 2008 2007 2007 Additional information: Transaction-based activities: Total number of grants paid: KwaZulu-Natal 15,155,356 15,017,233 1% 20,080,685 Limpopo 8,833,286 8,724,102 1% 11,662,537 North West 3,694,651 2,481,696 49% 3,351,477 Northern Cape 1,489,641 1,247,935 19% 1,669,037 Eastern Cape 6,444,793 6,426,585 -% 8,568,506 35,617,727 33,897,551 5% 45,332,242 Average revenue per grant paid: ZAR ZAR ZAR KwaZulu-Natal 21.63 19.90 9% 20.04 Limpopo 17.49 16.16 8% 16.32 North West 21.58 20.17 7% 20.73 Northern Cape 19.23 18.67 3% 18.64 Eastern Cape 15.90 12.19 30% 12.90 UEPS merchant acquiring system: Terminals installed at period end 4,222 4,179 1% 4,357 Number of participating retail locations at period end 2,468 2,511 (2)% 2,598 Value of transactions processed through POS devices during the quarter (in ZAR '000) 1,996,072 1,726,532 16% 1,777,436 Value of transactions processed through POS devices during the completed pay cycles for the quarter(in ZAR '000) 2,022,938 1,634,410 24% 1,777,738 Average number of grants processed per terminal during the quarter 917 845 9% 811 Average number of grants processed per terminal during the completed pay cycles for the quarter 933 807 16% 810 EasyPay transaction fees: Number of transactions processed 383,468,457 327,261,557 17% 441,439,169 Average fee per transaction (in ZAR) 0.20 0.21 (5)% 0.21 Nine months ended March 31, 2008 and 2007 (continued) Nine months ended Year ended Mar 31, Change June 30, 2008 2007 2007 Smart card accounts: Total number of smart card accounts 3,956,882 3,803,150 4% 3,812,273 Hardware, software and related technology sales: Ad hoc significant hardware sales (USD '000) Nedbank hardware 2,600 - nm 4,400 Ghanaian National Switch and Smart Card Payment System Contract 10,800 - nm - Smartswitch Botswana hardware and software (before consolidation adjustments) - - nm 2,100 Financial services: (USD '000) Traditional microlending: Finance loans receivable - gross 4,611 7,112 (35)% 5,263 Allowance for doubtful finance loans receivable (2,667) (4,359) (39)% (2,773) Finance loans receivable - net 1,944 2,753 (29)% 2,490 UEPS-based lending: Finance loans receivable - net and gross (i.e., no provisions) 2,986 3,457 (14)% 3,265 Earnings (Loss) from equity accounted investments: (USD '000) Beginning of period (1,774) 874 874 Equity-accounted earnings (loss) (801) 102 181 Equity-accounted earnings - Permit - 1,360 1,415 Equity-accounted earnings (loss) - SmartSwitch Namibia(1) 4 (318) (262) Equity-accounted earnings (loss) - SmartSwitch Botswana(1) (194) (683) (593) Equity-accounted (loss) - VTU Colombia (491) (257) (379) Equity-accounted (loss) - VinaPay (120) - - Sale of Permit - - (2,805) Foreign currency adjustment 186 15 (24) End of period (2,389) 991 (1,774) nm - Statistic not meaningful (1) - includes the elimination of unrealized net income Net 1 UEPS Technologies, Inc. Attachment B Reconciliation of GAAP results to fundamental results: Three months ended March 31, 2008 Three months ended March 31, Amortization of Prism and EasyPay Stock- Change 2008 2008 intangible based in tax Funda- GAAP assets(1) charge(2) rate(3) mental Net income (USD'000) 26,967 856 1,108 (5,919) 23,012 Earnings per share, basic (USD cents) 47 40 Net income (ZAR'000) 199,874 6,344 8,212 (43,869) 170,561 Earnings per share, basic (ZAR cents) 350 298 (1) Amortization of Prism and EasyPay Intangibles, net of deferred tax benefit: $ '000 ZAR '000 Customer relationships 355 2,630 Trademarks 92 679 Software and unpatented technology 896 6,642 Deferred tax benefit (487) (3,607) 856 6,344 (2) Includes stock-based compensation charges related to options and non-vested stock awards granted under the Amended and Restated Net 1 UEPS Technologies, Inc. 2004 Stock Incentive Plan and stock options granted to employees of Prism. (3) Represents the effect of the change in the fully distributed tax rate from 36.89% to 35.45%. Three months ended March 31, 2007 Three months ended March 31, Amortization of Prism and EasyPay Stock- 2007 2007 intangible based Funda GAAP assets(1) charge(2) -mental Net income (US$'000) 18,253 880 190 19,323 Earnings per share, basic (US$ cents) 32 34 Net income (ZAR'000) 131,586 6,344 1,370 139,300 Earnings per share, basic (ZAR cents) 231 245 (1) Amortization of Prism and EasyPay Intangibles, net of deferred tax benefit: $ '000 ZAR '000 Customer relationships 365 2,630 Software and unpatented technology 94 679 Trademarks 921 6,642 Deferred tax benefit (500) (3,607) 880 6,344 (2) Includes stock-based compensation charge related to options granted to employees of Prism and under the Amended and Restated Net 1 UEPS Technologies, Inc. 2004 Stock Incentive Plan. Nine months ended March 31, 2008 Nine months ended March 31, Amortization of Prism and EasyPay Stock- 2008 2008 intangible based Change in Funda GAAP assets(1) charge(2) tax rate(3) -mental Net income (USD'000) 65,213 2,670 2,860 (5,397) 65,346 Earnings per share, basic (USD cents) 114 114 Net income (ZAR'000) 465,008 19,032 20,394 (38,484) 465,950 Earnings per share, basic (ZAR cents) 814 816 (1) Amortization of Prism and EasyPay Intangibles, net of deferred tax benefit: $ '000 ZAR '000 Customer relationships 1,107 7,890 Trademarks 286 2,036 Software and unpatented technology 2,795 19,927 Deferred tax benefit (1,518) (10,821) 2,670 19,032 (2) Includes stock-based compensation charges related to options and non-vested stock awards granted under the Amended and Restated Net 1 UEPS Technologies, Inc. 2004 Stock Incentive Plan and stock options granted to employees of Prism. (3) Represents the effect of the change in the fully distributed tax rate from 36.89% to 35.45%. Nine months ended March 31, 2007 Nine months ended March 31, Amortization Expenses of associated Prism and with EasyPay Stock- acquisition 2007 2007 intangible based not Funda- GAAP assets(1) charge(2) pursued(3) mental Net income (US$'000) 46,148 2,548 836 1,188 50,720 Earnings per share, basic (US$ cents) 81 89 Net income (ZAR'000) 334,255 18,457 6,055 8,625 367,392 Earnings per share, basic (ZAR cents) 587 645 (1) Amortization of Prism and EasyPay Intangibles, net of deferred tax benefit: US$ '000 ZAR '000 Customer relationships 1,024 7,410 Software and unpatented technology 272 1,972 Trademarks 2,714 19,661 Deferred tax benefit (1,462) (10,586) 2,548 18,457 (2) Includes stock-based compensation charge related to options granted to employees of Prism and under the Amended and Restated Net 1 UEPS Technologies, Inc. 2004 Stock Incentive Plan. (3) Represents expenses associated with a potential acquisition that Net1 ultimately decided not to pursue during the three months ended December 31, 2006. Net 1 UEPS Technologies, Inc. Attachment C

Impact of non-recurring settlement payment received from SASSA in the third quarter of fiscal 2007 on the Company's reported revenues, operating income and net income:

Three months ended March 31, 2008 and 2007 Three months ended March 31, 2008 2007 % USD '000 USD '000 change Reported revenue 63,066 61,275 3% Consisting of: Revenue before non-recurring portion of settlement payment received from SASSA 63,066 55,350 14% Non-recurring portion of settlement payment received from SASSA - 5,925 Reported operating income 28,650 29,068 (1)% Consisting of: Operating income before non-recurring portion of settlement payment received from SASSA 28,650 25,099 14% Non-recurring portion of settlement payment received from SASSA - 3,969 Reported net income 26,967 18,253 48% Consisting of: Net income before non-recurring portion of settlement payment received from SASSA 26,967 15,748 71% Non-recurring portion of settlement payment received from SASSA - 2,505 Three months ended March 31, 2008 2007 % ZAR '000 ZAR '000 change Reported revenue 467,432 441,731 6% Consisting of: Revenue before non-recurring portion of settlement payment received from SASSA 467,432 398,777 17% Non-recurring portion of settlement payment received from SASSA - 42,954 Reported operating income 212,348 209,551 1% Consisting of: Operating income before non-recurring portion of settlement payment received from SASSA 212,348 180,775 17% Non-recurring portion of settlement payment received from SASSA - 28,776 Reported net income 199,874 131,586 52% Consisting of: Net income before non-recurring portion of settlement payment received from SASSA 199,874 113,426 76% Non-recurring portion of settlement payment received from SASSA - 18,160 Nine months ended March 31, 2008 and 2007 Nine months ended March 31, 2008 2007 % USD '000 USD '000 change Reported revenue 191,825 163,772 17% Consisting of: Revenue before non-recurring portion of settlement payment received from SASSA 191,825 157,847 22% Non-recurring portion of settlement payment received from SASSA - 5,925 Reported operating income 82,782 72,385 14% Consisting of: Operating income before non-recurring portion of settlement payment received from SASSA 82,782 68,416 21% Non-recurring portion of settlement payment received from SASSA - 3,969 Reported net income 65,213 46,148 41% Consisting of: Net income before non-recurring portion of settlement payment received from SASSA 65,213 43,643 49% Non-recurring portion of settlement payment received from SASSA - 2,505 Nine months ended March 31, 2008 2007 % ZAR '000 ZAR '000 change Reported revenue 1,367,825 1,186,218 15% Consisting of: Revenue before non-recurring portion of settlement payment received from SASSA 1,367,825 1,143,264 20% Non-recurring portion of settlement payment received from SASSA - 42,954 Reported operating income 590,284 524,292 13% Consisting of: Operating income before non-recurring portion of settlement payment received from SASSA 590,284 495,516 19% Non-recurring portion of settlement payment received from SASSA - 28,776 Reported net income 465,006 334,255 39% Consisting of: Net income before non-recurring portion of settlement payment received from SASSA 465,006 316,095 47% Non-recurring portion of settlement payment received from SASSA - 18,160 Net 1 UEPS Technologies, Inc. Attachment D

Impact of non-recurring settlement payment received from SASSA in the third quarter of fiscal 2007 on the Company's reported transaction-based activities revenues, operating income and operating income margin:

Three months ended March 31, 2008 and 2007 Three months ended March 31, 2008 2007 % USD '000 USD '000 change Reported revenue 37,254 40,962 (9)% Consisting of: Recurring transaction-based activities 37,254 35,037 6% Non-recurring portion of settlement payment received from SASSA - 5,925 Reported operating income 20,347 24,869 (18)% Consisting of: Recurring transaction-based activities 20,347 20,900 (3)% Non-recurring portion of settlement payment received from SASSA - 3,969 Operating income margin as reported 55% 61% (10)% Consisting of: Recurring transaction-based activities(1) 55% 60% (8)% Non-recurring portion of settlement payment received from SASSA - 67% Three months ended March 31, 2008 2007 % ZAR '000 ZAR '000 change Reported revenue 276,119 295,295 (6)% Consisting of: Recurring transaction-based activities 276,119 252,341 9% Non-recurring portion of settlement payment received from SASSA - 42,954 Reported operating income 150,808 179,281 (16)% Consisting of: Recurring transaction-based activities 150,808 150,505 -% Non-recurring portion of settlement payment received from SASSA - 28,776 Operating income margin as reported 55% 61% (10)% Consisting of: Recurring transaction-based activities 55% 60% (8)% Non-recurring portion of settlement payment received from SASSA - 67% Nine months ended March 31, 2008 and 2007 Nine months ended March 31, 2008 2007 % USD '000 USD '000 change Reported revenue 115,409 103,172 12% Consisting of: Recurring transaction-based activities 115,409 97,247 19% Non-recurring portion of settlement payment received from SASSA - 5,925 Reported operating income 62,317 60,799 2% Consisting of: Recurring transaction-based activities 62,317 56,830 10% Non-recurring portion of settlement payment received from SASSA - 3,969 Operating income margin as reported 54% 59% (8)% Consisting of: Recurring transaction-based activities 54% 58% (8)% Non-recurring portion of settlement payment received from SASSA - 67% Nine months ended March 31, 2008 2007 % ZAR '000 ZAR '000 change Reported revenue 822,934 747,286 10% Consisting of: Recurring transaction-based activities 822,934 704,332 17% Non-recurring portion of settlement payment received from SASSA - 42,954 Reported operating income 444,357 440,374 1% Consisting of: Recurring transaction-based activities 444,357 411,598 8% Non-recurring portion of settlement payment received from SASSA - 28,776 Operating income margin as reported 54% 59% (8)% Consisting of: Recurring transaction-based activities 54% 58% (8)% Non-recurring portion of settlement payment received from SASSA - 67%