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JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 02/07/13 -- Net 1 UEPS Technologies Inc. (NASDAQ: UEPS)(JSE: NT1) today announced results for the second quarter fiscal 2013.

Summary Financial Metrics

                                             Three months ended December 31,
                           ------------------------------------------------
                                                    % change in % change in
                                   2012        2011         USD         ZAR
                           ------------------------------------------------
(All figures in USD '000s
 except per share data)
Revenue                         111,442      92,058         21%         29%

GAAP net income                   2,629      25,094        (90%)       (89%)

Fundamental net income (1)        8,051      17,677        (54%)       (51%)

GAAP earnings per share ($)        0.06        0.56        (90%)       (89%)

Fundamental earnings per
 share ($) (1)                     0.18        0.39       (100%)       (52%)

Fully-diluted shares
 outstanding ('000's)            45,567      44,967          1%

Average period USD/ ZAR
 exchange rate                     8.74        8.18          7%


                                              Six months ended December 31,
                           ------------------------------------------------
                                                    % change in % change in
                                   2012        2011         USD         ZAR
                           ------------------------------------------------
(All figures in USD '000s
 except per share data)
Revenue                         223,124     191,984         16%         26%

GAAP net income                   9,373      44,862        (79%)       (77%)

Fundamental net income (1)       19,559      39,309        (50%)       (45%)

GAAP earnings per share ($)        0.21        1.00        (79%)       (78%)

Fundamental earnings per
 share ($) (1)                     0.43        0.87       (100%)       (46%)

Fully-diluted shares
 outstanding ('000's)            45,578      45,026          1%

Average period USD/ ZAR
 exchange rate                     8.46        7.82          8%

(1) Fundamental net income and earnings per share are non-GAAP measures and are described below under "Use of Non-GAAP Measures-Fundamental net income and fundamental earnings per share." See Attachment B for a reconciliation of GAAP net income to fundamental net income and earnings per share.

Factors impacting comparability of our Q2 2013 and Q2 2012 results

--  Unfavorable impact from the strengthening of the US dollar: The US
    dollar appreciated by 7% against the ZAR during Q2 2013 which negatively
    impacted our reported results;
--  SASSA implementation costs: We continued implementing our SASSA contract
    during Q2 2013 and incurred additional implementation and staff costs;
    and
--  Fiscal 2012 impacted by change in South African tax law: As a result of
    the change in South African tax law that replaced STC with a dividends
    withholding tax, Q2 2012 tax expense included a net taxation benefit of
    $11.8 million, as we recorded a $20.0 million deferred tax benefit which
    was offset by an $8.2 million foreign tax credit valuation allowance.

Comments and Outlook

"We enrolled 12 million citizens by the end of January as part of our SASSA implementation and remain on track to complete bulk enrollment by the end of March 2013," said Dr. Serge Belamant, Chairman and Chief Executive Officer of Net1. "We continue to cooperate with the DOJ and SEC on their investigations, but as a result of these investigations, we are experiencing some adverse impact from the damage caused to our reputation, including our ability to execute certain aspects of our strategic plan. The Supreme Court will hear the appeal of the August 2012 High Court judgment on February 15. We believe we have a strong case and look forward to presenting our arguments to the Supreme Court," he concluded.

"The successful implementation for SASSA is a one-off event and integral for the smooth transition and operation of South Africa's social welfare program. Given the critical importance of this roll out, and the higher number of beneficiaries required to be enrolled in the same time frame, our implementation costs are materially but proportionally higher than anticipated," said Herman Kotze, Chief Financial Officer of Net1. "As a result, in fiscal 2013, we expect fundamental earnings per share to be at least $0.95 assuming a constant currency base of ZAR 7.72/$1 and using our fiscal 2012 share count of 45 million shares," he concluded.

Progress of second phase of our SASSA contract implementation

We commenced the second phase of the enrollment process in early July 2012 and plan to be substantially complete by March 2013, in accordance with the enrollment plan agreed with SASSA. Under our agreement with SASSA, we have to enroll both the grant recipients (those individuals who receive the actual payment and are issued with our UEPS/EMV smart card), as well as the grant beneficiaries (those individuals who have qualified for the social grant, but are not necessarily the recipient of the grant). While the number of grant recipients on a national basis has consistently been quantified by SASSA at 9.4 million individuals, the number of beneficiaries is continually being revised by SASSA on an ongoing basis from an initial estimate of approximately 15.5 million, to the current estimate of approximately 21.6 million. In order to complete the second phase of the implementation on time, and given the significantly higher number of beneficiaries, we increased the number of temporary employees that we hired for the entire second quarter of fiscal 2013from 2,500 to approximately 5,500. The total number of temporary employees is significantly more than the 2,500 we previously expected at the beginning of fiscal 2013 as the actual number of individuals (grant recipients plus grant beneficiaries) that SASSA has asked us to enroll has increased substantially. During Q2 2013, we enrolled a further 2.7 million grant recipients and an additional 3.8 million beneficiaries.

During Q2 2013 we incurred direct implementation expenses of approximately $18.0 million (ZAR 157.1 million) including staff, travel, temporary infrastructure hire, fixed premises hire for enrollment and stationery costs. We are unable to quantify the value of time spent by our executives and pension and welfare operations managers and staff that service the five provinces in which we operated under the previous contract and that have assisted in the implementation of the national contract. Our implementation expenditure during Q2 2013 was materially higher than we had previously anticipated due to the significant number of grant recipients and beneficiaries that we enrolled during the quarter, especially in the rural and deep rural areas. In order to meet our enrollment obligations in accordance with the timetable agreed with SASSA we incurred higher than anticipated temporary infrastructure hire, travel and staff expenditures. We expect this level of expenditure to reduce slightly during the third quarter of fiscal 2013, as our efforts are now focused primarily on urban areas. We also expensed $3.0 million (ZAR 26.6 million) related to the cost of the UEPS/EMV smart cards issued during the quarter, which is not included in the $18.0 million (ZAR 157.1 million) above.

We also incurred approximately $0.7 million in capital expenditures related to the implementation during Q2 2013. Since inception of the implementation we have incurred cumulative capital expenditures of $25.2 million. We anticipate cumulative capital expenditures related to the ramp of our national contract to be in the $30 million range. We have lowered our expected capital expenditure range related to the implementation of our SASSA contract given the decision to expense the cost of smart cards rather than capitalize those costs.

When we signed our Service Level Agreement with SASSA in February 2012, we anticipated total cash outlays of approximately $68 to $95 million from February 2012 through March 2013, including direct implementation costs of $5-10 million per quarter, as well as capital expenditures of $45-50 million, in order to build our infrastructure, register 15.6 million beneficiaries and roll out our biometrically secure UEPS/EMV technology nationally. With one more quarter of bulk enrollment remaining, our total cash outlay to date has been $74 million for direct implementation expenses, smart card costs and capital expenditures. We therefore would be in-line with the mid-point of our initial total cash outlay range assuming the volume of enrollments had not changed. Having to register the incremental 6 million people and therefore employ our temporary staff for longer, should result in our total cash outlay being between $100 and $105 million by March 2013. We also expect that by the end of the bulk enrollment period, roughly 10-15% of beneficiaries would not have come for re-registration and therefore we would have to rely on SASSA's efforts to encourage those beneficiaries to re-register, which would require us to maintain at least some if not all of our enrollment infrastructure for a couple of months in Q4 2013. Given our enrollment experience to date however, we are unsure of what proportion of un-registered people would ultimately come for re-registration as some of the remainder may be duplicate recipients or recipients that do not exist altogether.

Results of Operations by Segment and Liquidity

Our frequently asked questions and operating metrics will be updated and posted on our website (www.net1.com).

South African transaction-based activities

Segment revenue was $60.8 million in Q2 2013, up 31% compared with Q2 2012 in USD and up 40% on a constant currency basis. In ZAR, the increases in segment revenue were primarily due to higher revenues earned under our new SASSA contract. Segment operating income margin was 3% and 34%, respectively, and declined primarily due to SASSA implementation costs. Excluding amortization of acquisition-related intangibles, Q2 2013 segment operating income margin was 6%, compared to 38% during Q2 2012.

International transaction-based activities

KSNET continues to contribute the majority of our revenues in this operating segment. Segment revenue was $33.1 million in Q2 2013, up 15% compared with Q2 2012 in USD and 23% on a constant currency basis. Operating margin for the segment is lower than most of our South African transaction-based businesses and was negatively impacted by continued competition in the Korean marketplace but was partially offset by increased revenue contributions from KSNET, NUETS' initiative in Iraq and SmartSwitch Botswana and favorable currency movement between the Korean won and the US dollar. Excluding the amortization of intangibles but including the start-up costs referenced above, Q2 2013 operating income margin was 11% compared to 12% during Q2 2012.

Smart card accounts

Segment revenue was $8.2 million in Q2 2013, up 13% compared with Q2 2012 in USD and 21% on a constant currency basis. Q2 2013 segment operating income margin was 29%, compared to 45% during Q2 2012. We have reduced our pricing for smart card accounts after taking into consideration the lower price and higher volumes of the new SASSA contract.

Financial services

UEPS-based lending contributes the majority of the revenue and operating income in this operating segment. Segment revenue was $1.4 million in Q2 2013, down 26% compared with Q2 2012 in USD and 20% lower on a constant currency basis, principally due to a decrease in lending activities. Q2 2013 segment operating income margin was 72% compared with 53% during Q2 2012 primarily as a result of an improved margin in our UEPS-based lending book resulting from a better loss experience, offset by start-up expenditures related to Smart Life and other financial services offerings.

Hardware, software and related technology sales

Segment revenue was $7.9 million in Q2 2013, up 4% compared with Q2 2012 in USD and 12% on a constant currency basis. In constant currency, the increase in revenue and operating income resulted primarily from an increase in royalty fees, offset by a lower contribution from all other contributors to hardware and software sales. Excluding amortization of all intangibles, segment operating income margin was 10% compared to 12% during Q2 2012.

Cash flow and liquidity

At December 31, 2012, we had cash and cash equivalents of $38 million, down from $39 million at June 30, 2012. The decrease in our cash balances from June 30, 2012, was primarily from implementation costs and capital expenditures incurred to implement our SASSA contract, a scheduled repayment of our Korean debt and the acquisition of Pbel and SmartSwitch Botswana. For Q2 2013, net cash utilized by operating activities was $6.9 million compared with $6.2 million in Q2 2012.

Excluding the impact of interest received, interest paid under our Korean debt and taxes paid, the decrease in cash provided by operating activities resulted from significant implementation costs related to our SASSA contract, partially offset by cash generated from operations. Capital expenditures for Q2 2013 and 2012 were $5.6 million and $5.1 million, respectively, and have increased primarily due to acquisition of payment vehicles and other equipment for our new SASSA contract and payment processing terminals in Korea.

Use of Non-GAAP Measures

US securities laws require that when we publish any non-GAAP measures, we disclose the reason for using the non-GAAP measure and provide reconciliation to the directly comparable GAAP measure. The presentation of fundamental net income and fundamental earnings per share and headline earnings per share are non-GAAP measures.

Fundamental net income and fundamental earnings per share

Fundamental net income and earnings per share is GAAP net income and earnings per share adjusted for (1) the amortization of acquisition-related intangible assets (net of deferred taxes), (2) stock-based compensation charges and (3) unusual non-recurring items, including the amortization of KSNET debt facility fees, as well as (a) in fiscal 2013, DOJ and SEC investigations-related expenses and acquisition-related costs; and (b) in fiscal 2012, the effects of a change in South African tax law and the creation of a valuation allowance related to foreign tax credits, the profit on liquidation of SmartSwitch Nigeria and loss on sale of 10% of Smart Life. Management believes that the fundamental net income and earnings per share metric enhances its own evaluation, as well as an investor's understanding, of our financial performance. Attachment B presents the reconciliation between GAAP and fundamental net income and earnings per share.

Headline earnings per share ("HEPS")

The inclusion of HEPS in this press release is a requirement of our listing on the JSE. HEPS basic and diluted is calculated using net income which has been determined based on GAAP. Accordingly, this may differ to the headline earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.

HEPS basic and diluted is calculated as GAAP net income adjusted for the profit on sale of property, plant and equipment, net of related tax effects, the loss attributable to the sale of 10% of Smart Life and the profit on liquidation of SmartSwitch Nigeria. Attachment C presents the reconciliation between our net income used to calculate earnings per share basic and diluted and HEPS basic and diluted.

Conference Call

We will host a conference call to review Q2 2013 results on February 8, 2013, at 8:00 Eastern Time. To participate in the call, dial 1-800-860-2442 (U.S. only), 1-866-605-3852 (Canada only), 0-800-917-7042 (U.K. only) or 0-800-200-648 (South Africa only) ten minutes prior to the start of the call. Callers should request "Net1 call" upon dial-in. The call will also be webcast on our homepage, www.net1.com. Please click on the webcast link at least ten minutes prior to the call. A webcast of the call will be available for replay on our website through March 1, 2013.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its 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.

Net1 operates market-leading payment processors in South Africa, Republic of Korea, Ghana and Iraq. In addition, Net1's proprietary Mobile Virtual Card technology offers secure mobile payments and banking services in developed and emerging countries while its MediKredit and XeoHealth subsidiaries provide its proprietary 5010 and ICD-10 compliant real-time claims adjudication system.

Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.

Forward-Looking Statements

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.
Unaudited Condensed Consolidated Statements of Operations

                             Three months ended          Six months ended
                    -----------------------------------------------------
                                    December 31,              December 31,
                      -------------------------  ------------------------
                              2012         2011         2012         2011
                      ------------  -----------  -----------  -----------
                      (In thousands, except per (In thousands, except per
                                     share data)               share data)

REVENUE             $      111,442 $     92,058 $    223,124 $    191,984

EXPENSE

 Cost of goods sold,
  IT processing,
  servicing and
  support                   47,227       34,168       92,328       67,112

 Selling, general
  and administration        48,756       28,872       96,008       55,929

 Depreciation and
  amortization              10,487        8,790       20,491       17,869

                      ------------  -----------  -----------  -----------
OPERATING INCOME             4,972       20,228       14,297       51,074

INTEREST INCOME              2,589        1,820        5,680        3,817

INTEREST EXPENSE             2,023        2,355        4,094        4,971
                      ------------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                       5,538       19,693       15,883       49,920

INCOME TAX EXPENSE           2,971       (5,378)       6,700        5,174
                      ------------  -----------  -----------  -----------

NET INCOME BEFORE
 EARNINGS FROM
 EQUITY-ACCOUNTED
 INVESTMENTS                 2,567       25,071        9,183       44,746

EARNINGS FROM
 EQUITY-ACCOUNTED
 INVESTMENTS                    54           19          182          104
                      ------------  -----------  -----------  -----------

NET INCOME                   2,621       25,090        9,365       44,850

LESS (ADD) NET
 INCOME (LOSS)
 ATTRIBUTABLE TO
 NON-CONTROLLING
 INTEREST                       (8)          (4)          (8)         (12)

                      ------------  -----------  -----------  -----------
NET INCOME          $
 ATTRIBUTABLE TO
 NET1                        2,629 $     25,094 $      9,373 $     44,862
                      ------------  -----------  -----------  -----------
                      ------------  -----------  -----------  -----------

Net income per
 share, in United
 States dollars
 Basic earnings
  attributable to
  Net1 shareholders          $0.06        $0.56        $0.21        $1.00
 Diluted earnings
  attributable to
  Net1 shareholders          $0.06        $0.56        $0.21        $1.00



NET 1 UEPS TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
                                                Unaudited               (A)
                                              December 31,         June 30,
                                                     2012             2012
                                      ------------------------------------
                                      ------------------------------------
                                         (In thousands, except share data)

                                  ASSETS
CURRENT ASSETS
 Cash and cash equivalents            $            38,116 $         39,123
 Pre-funded social welfare grants
  receivable                                        8,024            9,684
 Accounts receivable, net of
  allowances of - December: $1,027;
  June: $788                                      105,104          101,918
 Finance loans receivable                           6,979            8,141
 Deferred expenditure on smart cards                8,306            4,587
 Inventory                                          9,869            6,192
 Deferred income taxes                              5,976            5,591
                                          ---------------  ---------------
  Total current assets before
   settlement assets                              182,374          175,236
   Settlement assets                              414,621          409,166
                                          ---------------  ---------------
    Total current assets                          596,995          584,402
PROPERTY, PLANT AND EQUIPMENT, NET OF
 ACCUMULATED DEPRECIATION OF -
 December: $85,023; June: $74,242                  55,746           52,616
EQUITY-ACCOUNTED INVESTMENTS                        1,192            1,508
GOODWILL                                          193,133          182,737
INTANGIBLE ASSETS, net                             92,287           93,930
OTHER LONG-TERM ASSETS, including
 reinsurance assets                                41,010           40,700
                                          ---------------  ---------------
 TOTAL ASSETS                                     980,363          955,893
                                          ---------------  ---------------
                                          ---------------  ---------------

                                LIABILITIES
CURRENT LIABILITIES
 Accounts payable                                  12,881           13,172
 Other payables                                    36,960           40,167
 Current portion of long-term
  borrowings                                       15,221           14,019
 Income taxes payable                               5,317            6,019
                                          ---------------  ---------------
  Total current liabilities before
   settlement obligations                          70,379           73,377
   Settlement obligations                         414,621          409,166
                                          ---------------  ---------------
    Total current liabilities                     485,000          482,543
DEFERRED INCOME TAXES                              20,999           20,988
LONG-TERM BORROWINGS                               78,989           79,760
OTHER LONG-TERM LIABILITIES, including
 insurance policy liabilities                      25,107           25,791
                                          ---------------  ---------------
 TOTAL LIABILITIES                                610,095          609,082
                                          ---------------  ---------------
COMMITMENTS AND CONTINGENCIES

                                  EQUITY
NET1 EQUITY:
 COMMON STOCK
  Authorized: 200,000,000 with $0.001
   par value;
  Issued and outstanding shares, net
   of treasury - December: 45,600,471;
   June: 45,548,902                                    59               59
 PREFERRED STOCK
  Authorized shares: 50,000,000 with
   $0.001 par value;
  Issued and outstanding shares, net
   of treasury: December: -; June: -                    -                -
 ADDITIONAL PAID-IN-CAPITAL                       159,002          155,350
 TREASURY SHARES, AT COST: December:
  13,455,090; June: 13,455,090                   (175,823)        (175,823)
 ACCUMULATED OTHER COMPREHENSIVE LOSS             (65,282)         (75,722)
 RETAINED EARNINGS                                449,014          439,641
                                          ---------------  ---------------
  TOTAL NET1 EQUITY                               366,970          343,505
  NON-CONTROLLING INTEREST                          3,298            3,306
                                          ---------------  ---------------
   TOTAL EQUITY                                   370,268          346,811
                                          ---------------  ---------------

                                          ---------------  ---------------
    TOTAL LIABILITIES AND             $
     SHAREHOLDERS' EQUITY                         980,363 $        955,893
                                          ---------------  ---------------
                                          ---------------  ---------------

(A) - Derived from audited financial statements



NET 1 UEPS TECHNOLOGIES INC.
Unaudited Condensed Consolidated Statements of Cash Flows

                               Three months ended          Six months ended
                       ----------------------------------------------------
                                      December 31,              December 31,
                         ------------------------  ------------------------
                                2012         2011         2012         2011
                         -----------  -----------  -----------  -----------
                                    (In thousands)            (In thousands)

Cash flows from
 operating activities
Net income             $       2,621 $     25,090 $      9,365 $     44,850
Depreciation and
 amortization                 10,487        8,790       20,491       17,869
(Earnings) Loss from
 equity-accounted
 investments                     (54)         (19)        (182)        (104)
Fair value adjustments         1,000         (551)         707         (772)
Interest payable               1,117        2,113        2,309        3,775
Profit on disposal of
 property, plant and
 equipment                       (86)         (26)         (86)         (34)
Net loss on sale of 10%
 of SmartLife                      -           81            -           81
Profit on liquidation
 of SmartSwitch Nigeria            -            -            -       (3,994)
Realized loss on sale
 of SmartLife
 investments                       -            -            -           25
Stock-based
 compensation charge           1,117          543        2,233        1,039
Facility fee amortized            76           83          164          199
Decrease in accounts
 receivable, pre-funded
 social welfare grants
 receivable and finance
 loans receivable             (5,061)     (19,044)         831      (15,795)
(Increase) Decrease in
 deferred expenditure
 on smart cards               (3,668)         (58)      (3,701)         (14)
Increase in inventory         (2,582)         920       (3,508)         601
(Decrease) Increase in
 accounts payable and
 other payables               (4,939)      (2,679)      (6,288)      (2,348)
Increase (Decrease) in
 taxes payable                (6,032)      (7,355)        (594)     (10,962)
(Decrease) Increase in
 deferred taxes                 (916)     (14,088)      (2,932)     (13,396)
                         -----------  -----------  -----------  -----------
 Net cash provided by
  operating activities        (6,920)      (6,200)      18,809       21,020
                         -----------  -----------  -----------  -----------

Cash flows from
 investing activities
Capital expenditures          (5,597)      (5,120)     (12,050)      (9,586)
Proceeds from disposal
 of property, plant and
 equipment                       251          174          356          268
Acquisition of Pbel,
 net of cash acquired           (230)           0       (2,143)           0
Acquisition of prepaid
 business, net of cash
 acquired                          -       (4,481)           -       (4,481)
Acquisition of Smart
 Life, net of cash
 acquired                          -            -            -       (1,673)
Settlement from former
 shareholders of KSNET             -        4,945            -        4,945
Repayment of loan by
 equity-accounted
 investment                        -           30            3           63
Purchase of investments
 related to insurance
 business                          -            -            -       (2,320)
Proceeds from maturity
 of investments related
 to insurance business             -            -          545        2,321
Net change in
 settlement assets           (72,835)      30,349      (12,056)      33,796
                         -----------  -----------  -----------  -----------
 Net cash provided by
  (used in) investing
  activities                 (78,411)      25,897      (25,345)      23,333
                         -----------  -----------  -----------  -----------

Cash flows from
 financing activities
Repayment of long-term
 borrowings                   (7,307)      (7,185)      (7,307)      (7,185)
Proceeds from issue of
 common stock                      -            0          240            0
Proceeds on sale of 10%
 of SmartLife                      -          107            -          107
Acquisition of treasury
 stock                             -            0            -       (1,129)
Net change in
 settlement obligations       72,835      (30,349)      12,056      (33,796)
                         -----------  -----------  -----------  -----------
Net cash used in
 financing activities         65,528      (37,427)       4,989      (42,003)
                         -----------  -----------  -----------  -----------

Effect of exchange rate
 changes on cash                 375       (3,389)         540      (16,749)
                         -----------  -----------  -----------  -----------

Net increase in cash
 and cash equivalents        (19,428)     (21,119)      (1,007)     (14,399)

Cash and cash
 equivalents -
 beginning of period          57,544      101,983       39,123       95,263
                         -----------  -----------  -----------  -----------

Cash and cash
 equivalents - end of
 period                $      38,116 $     80,864 $     38,116 $     80,864
                         -----------  -----------  -----------  -----------
                         -----------  -----------  -----------  -----------

Net 1 UEPS Technologies Inc.

Attachment A

Operating segment revenue, operating income and operating margin:

Three months ended December 31, 2012 and 2011 and September 30, 2012

                                                                   Change -
                                                                   constant
                                                     Change -      exchange
                                                       actual       rate(1)
                                               ----------------------------
                                                Q2 '13 Q2 '13 Q2 '13 Q2 '13
Key segmental data,                                 vs     vs     vs     vs
 in $ '000,            Q2 '13   Q2 '12   Q1 '13  Q2'12 Q1 '13  Q2'12 Q1 '13
                    -------------------------------------------------------
 Revenue:
  SA transaction-
   based activities   $60,764  $46,448  $61,364    31%    (1%)   40%     5%
  International
   transaction-based
   activities          33,113   28,835   31,649    15%     5%    23%    11%
  Smart card
   accounts             8,219    7,264    8,364    13%    (2%)   21%     4%
  Financial services    1,448    1,944    1,384   (26%)    5%   (20%)   11%
  Hardware, software
   and related
   technology sales     7,898    7,567    8,921     4%   (11%)   12%    (6%)
                    ---------------------------
   Total
    consolidated
    revenue          $111,442  $92,058 $111,682    21%     0%    29%     6%
                    ---------------------------

 Consolidated
  operating (loss)
  income:
  SA transaction-
   based activities    $1,933  $15,766   $6,400   (88%)  (70%)  (87%)  (68%)
                    -------------------------------------------------------
  Operating income
   excluding
   amortization         3,398   17,463    7,849   (81%)  (57%)  (79%)  (54%)
  Amortization of
   intangible assets   (1,465)  (1,697)  (1,449)  (14%)    1%    (8%)    7%
                    -------------------------------------------------------
  International
   transaction-based
   activities             202      241     (171)  (16%) (218%)  (10%) (225%)
                    -------------------------------------------------------
  Operating income
   excluding
   amortization         3,515    3,369    2,981     4%    18%    12%    25%
  Amortization of
   intangible assets   (3,313)  (3,128)  (3,152)    6%     5%    13%    11%
                    -------------------------------------------------------
  Smart card
   accounts             2,342    3,302    2,385   (29%)   (2%)  (24%)    4%
  Financial services    1,048    1,026    1,097     2%    (4%)    9%     1%
  Hardware, software
   and related
   technology sales       795      909    1,984   (13%)  (60%)   (6%)  (58%)
                    -------------------------------------------------------
  Operating income
   excluding
   amortization           878      997    2,072   (12%)  (58%)   (6%)  (55%)
  Amortization of
   intangible assets      (83)     (88)     (88)   (6%)   (6%)    1%    (0%)
                    -------------------------------------------------------
  Corporate/
   Eliminations        (1,348)  (1,016)  (2,370)   33%   (43%)   42%   (40%)
                    ---------------------------
   Total operating
    income             $4,972  $20,228   $9,325   (75%)  (47%)  (74%)  (44%)
                    ---------------------------

 Operating income
  margin (%)
  SA transaction-
   based activities        3%      34%      10%
  International
   transaction-based
   activities              1%       1%      (1%)
  International
   transaction-based
   activities
   excluding
   amortization           11%      12%       9%
  Smart card
   accounts               29%      45%      29%
  Financial services      72%      53%      79%
  Hardware, software
   and related
   technology sales       10%      12%      22%
  Overall operating
   margin                  4%      22%       8%

(1) - This information shows what the change in these items would have been
 if the USD/ ZAR exchange rate that prevailed during the second quarter of
 fiscal 2013 also prevailed during the second quarter of fiscal 2012 and
 the first quarter of fiscal 2013.



Six months ended December 31, 2012 and 2011



                                                                   Change -
                                                                   constant
                                                       Change -    exchange
                                                         actual     rate(1)
                                                   ------------------------
                                                          F2013       F2013
Key segmental data, in                                       vs          vs
 '000, except margins             F2013       F2012       F2012       F2012
                           ------------------------------------------------
 Revenue:
  SA transaction-based
   activities                  $122,128     $96,350         27%         37%
  International
   transaction-based
   activities                    64,762      59,090         10%         19%
  Smart card accounts            16,583      15,516          7%         16%
  Financial services              2,832       4,055        (30%)       (24%)
  Hardware, software and
   related technology sales      16,819      16,973         (1%)         7%
                           ------------------------
   Total consolidated
    revenue                    $223,124    $191,984         16%         26%
                           ------------------------

 Consolidated operating
  income (loss):
  SA transaction-based
   activities                    $8,333     $35,949        (77%)       (75%)
  International
   transaction-based
   activities                        31         925        (97%)       (96%)
                           ------------------------------------------------
   Operating income
    excluding amortization        6,499       7,355        (12%)        (4%)
   Amortization of
    intangible assets            (6,468)     (6,430)         1%          9%
                           ------------------------------------------------
  Smart card accounts             4,727       7,052        (33%)       (28%)
  Financial services              2,145       2,437        (12%)        (5%)
  Hardware, software and
   related technology sales       2,779       2,846         (2%)         6%
  Corporate/ Eliminations        (3,718)      1,865       (299%)      (316%)
                           ------------------------
   Total operating income        14,297     $51,074        (72%)       (70%)
                           ------------------------

 Operating income margin (%)
  SA transaction-based
   activities                        7%         37%
  International
   transaction-based
   activities                        0%          2%
  International
   transaction-based
   activities excluding
   amortization                     10%         12%
  Smart card accounts               29%         45%
  Financial services                76%         60%
  Hardware, software and
   related technology sales         17%         17%
  Overall operating margin           6%         27%

(1) - This information shows what the change in these items would have been
 if the USD/ ZAR exchange rate that prevailed during the first half of
 fiscal 2013 also prevailed during the first half of fiscal 2012.

Net 1 UEPS Technologies Inc.

Attachment B

Reconciliation of GAAP net income and earnings per share, basic, to fundamental net income and earnings per share, basic:

Three months ended December 31, 2012 and 2011

                                            EPS,                        EPS,
                           Net income     basic        Net income     basic
                             (USD'000)     (USD)         (ZAR'000)     (ZAR)
                   --------------------------------------------------------
                        2012     2011 2012 2011     2012     2011 2012 2011
                   --------------------------------------------------------

GAAP                   2,629   25,094 0.06 0.56   22,979  205,148 0.50 4.57

 Intangible asset
  amortization, net    3,640    3,656             31,817   29,893
 Stock-based
  compensation
  charge               1,117      543              9,763    4,439
 Facility fees for
  KSNET debt              76      110                664      899
 DOJ and SEC
  investigations-
  related expenses       561        -              4,903        -
 Acquisition-
  related costs           28        -                245        -
 Change in tax law         -  (20,031)                 - (163,760)
 Create FTC
  valuation
  allowance                -    8,232                  -   67,298
 Loss on sale of
  10% of Smart Life        -       73                  -      597
                   ------------------          ------------------
  Fundamental          8,051   17,677 0.18 0.39   70,371  144,514 1.55 3.22
                   ------------------          ------------------
                   ------------------          ------------------


Six months ended December 31, 2012 and 2011

                                            EPS,                        EPS,
                           Net income     basic        Net income     basic
                             (USD'000)     (USD)         (ZAR'000)     (ZAR)
                   --------------------------------------------------------
                        2012     2011 2012 2011     2012     2011 2012 2011
                   --------------------------------------------------------

GAAP                   9,373   44,862 0.21 1.00   79,268  350,808 1.74 7.80

 Intangible asset
  amortization, net    7,155    7,196             60,518   56,268
 Stock-based
  compensation
  charge               2,233    1,040             18,885    8,132
 Facility fees for
  KSNET debt             164      211              1,387    1,650
 DOJ and SEC
  investigations-
  related expenses       561        -              4,744        -
 Acquisition-
  related costs           73        -                617        -
 Change in tax law         -  (18,315)                 - (150,373)
 Create FTC
  valuation
  allowance                -    8,232                  -   67,588
 Profit on
  liquidation of
  subsidiary               -   (3,994)                 -  (31,232)
 Loss on sale of
  10% of Smart Life        -       77                  -      602
                   ------------------          ------------------
  Fundamental         19,559   39,309 0.43 0.87  165,419  303,443 3.63 6.74
                   ------------------          ------------------
                   ------------------          ------------------

Net 1 UEPS Technologies Inc.

Attachment C

Reconciliation of net income used to calculate earnings per share basic and diluted and headline earnings per share basic and diluted:

Three months ended December 31, 2012 and 2011


                                                          2012        2011
                                                  ------------------------

Net income (USD'000)                                     2,629      25,094
Adjustments:
 Loss on sale of 10% of Smart Life                           -          73
 Profit on sale of property, plant and equipment           (86)        (26)
 Tax effects on above                                       24           7

                                                  ------------------------
Net income used to calculate headline earnings
 (USD'000)                                               2,567      25,148
                                                  ------------------------
                                                  ------------------------

Weighted average number of shares used to
 calculate net income per share basic earnings and
 headline earnings per share basic earnings ('000)      45,545      44,935

Weighted average number of shares used to
 calculate net income per share diluted earnings
 and headline earnings per share diluted earnings
 ('000)                                                 45,567      44,967

Headline earnings per share:
 Basic, in USD                                            0.06        0.56
 Diluted, in USD                                          0.06        0.56


Six months ended December 31, 2012 and 2011

                                                          2012        2011
                                                  ------------------------

Net income (USD'000)                                     9,373      44,862
Adjustments:
 Profit on liquidation of SmartSwitch Nigeria                -      (3,994)
 Loss on sale of 10% of Smart Life                           -          77
 Profit on sale of property, plant and equipment           (86)        (34)
 Tax effects on above                                       24          10

                                                  ------------------------
Net income used to calculate headline earnings
 (USD'000)                                               9,311      40,921
                                                  ------------------------
                                                  ------------------------

Weighted average number of shares used to
 calculate net income per share basic earnings and
 headline earnings per share basic earnings ('000)      45,530      44,995

Weighted average number of shares used to
 calculate net income per share diluted earnings
 and headline earnings per share diluted earnings
 ('000)                                                 45,578      45,026

Headline earnings per share:
 Basic, in USD                                            0.20        0.91
 Diluted, in USD                                          0.20        0.91