FINALLY!!! NEWS!!!
Net 1 Announces Outsourcing Agreement and Financial Plan
VANCOUVER, B.C., Dec 8, 2000 (BUSINESS WIRE) -- Net 1 U.E.P.S. Technologies
Inc., ("NUEP") (Nasdaq:NUEP) announces that it has signed an outsourcing
agreement with Net 1 Investment Holdings (Pty.) Ltd., a wholly owned subsidiary
of Net 1 Applied Technology Holding Ltd. ("Aplitec") a company listed on the
Johannesburg Stock Exchange in South Africa.
Aplitec was formed in June 1997 to implement smart card payment solutions based
on the Funds Transfer System ("FTS") patents in South Africa and surrounding
territories. NUEP owns the worldwide exclusive sales and marketing rights,
except South Africa and surrounding territories, to exploit the FTS patents and
associated technological developments.
Aplitec has, over the last three years, successfully implemented numerous
systems for pension and welfare benefit management, pre-paid electricity, water
and telephone, short and medium term loan management, salary and wage payments,
and general retail. The FTS smart card technology has or can be used to deliver
the above services through integrated off-line point of service devices, the
Internet, WAP, fixed line and cellular phone networks. Aplitec's revenue for the
year ending June 2000 was R436,860,000 with profit before tax of R87,293,000
compared to June 1999 figures of R245,665,000 and R46,923,000 respectively (7R:
1 US$). The outsourcing agreement will provide NUEP access to a marketing,
technical and administration support team that will enable NUEP to market its
smart card payment systems in many emerging economies. Furthermore, the Internet
and cellular network solutions can be promoted and made available in developed
countries such as the USA, Canada and Europe.
NUEP also announces that it has granted an option, valid for 120 days, to a
corporate management firm, Sandon Overseas Corporation Limited, to acquire up to
8,750,000 shares of NUEP at $3.50 or $30,625,000. The purchase price is payable
$7 million in cash and the balance by a combination of cash or capital stock, or
any combination thereof, of Aplitec stock equal to 20.1% of the total issued
share capital of Aplitec. Upon exercise of the option, NUEP will file a
registration statement with the SEC, as SEC approval is a key condition
precedent to the implementation of the option agreement. Management will also
make application for a NASDAQ listing upon completion of the above transaction.
NUEP continues its efforts to develop its management team and refine its
marketing and sales strategies to exploit the FTS/UEPS technology anywhere in
the world. The above mentioned outsourcing agreement and the realization of the
option would provide the critical mass required for NUEP to become a world
player in the field of secure payment transaction processing systems.
The foregoing contain forward-looking statements, which are subject to
contingencies and uncertainties that may or may not occur. Among the
contingencies and uncertainties that may affect NUEP are uncertainty of product
and technology development, difficulties in developing market acceptance for
products, rapid technological changes and obsolescence, competition, inability
to attract and retain key personnel and significant capital requirements in
order to fully develop products. Forward-looking statements are not guarantees
of future performance and are based on numerous assumptions about future
conditions that could prove to be inaccurate. Actual events, transactions and
results may differ materially from anticipated events, transactions or results
described in such statements. Material uncertainties about the future of NUEP
exist. |
