Net 1 UEPS Technologies (UEPS) Announces SASSA Cancellation of Tender Process to Constitutional Court

October 15, 2015 1:05 PM

Net 1 UEPS Technologies (NASDAQ: UEPS) today provided a further update on the current SASSA tender process.

The Company previously reported that SASSA had issued a Request for Proposal ("RFP") in accordance with the instructions issued by the South African Constitutional Court ("Court"). After careful consideration of all the relevant factors, the Company decided to withdraw from the tender process and did not submit a bid.

SASSA provided the Court with an update regarding the current tender process today. The Chief Executive Officer ("CEO") of SASSA has decided not to award the SASSA tender, in accordance with the recommendation received from the Bid Adjudication Committee ("BAC"). The BAC recommended that the tender not be awarded as a result of the non-responsiveness of all the bids received with the mandatory requirements contained in the RFP.

Accordingly, the BAC recommended that the CEO should allow the current contract with the Company to continue until completion of the five-year period for which the contract was initially awarded (March 31, 2017), in accordance with the Court's judgment of April 2014. The BAC also recommended that the CEO should file a report with the Court within 14 days of the decision not to award the tender, setting out all the relevant information on whether and when SASSA will be ready to assume the duty to pay grants itself. A full copy of SASSA's Court filing is available on the Company's website atwww.net1.com.

The Company is committed to continue with the provision of a high level service to SASSA and the social grant beneficiaries in accordance with the service level agreement and the Court's order.

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