Iraqi Government Selects Net1's UEPS Technology

Net1 UEPS Technologies, Inc. ("Net1" or the "Company") today announced that it has signed a contract with a consortium comprising the Iraqi government and local Iraqi banks for the use of Net1's UEPS technology in Iraq. Under the contract, Net1 will provide a customized UEPS banking and payment system to the consortium.

The consortium, International Smart Card LLC, selected Net1 as its partner to assist with the challenges currently encountered with the payment and distribution of cash disbursements in Iraq. It is expected that the UEPS technology will also be utilized by Iraqi citizens living abroad, via bank branches in other countries.

The deployment of the UEPS will provide a ubiquitous platform for retail payment transactions in Iraq by providing interoperability between automatic teller machines, point of sale devices and bank branches. The UEPS technology will provide offline and online transaction processing solutions to enable affordable products and services to be offered to Iraqi citizens irrespective of where they reside. Projects identified include the payment of social grants to war victims, employee salary/wage payments, banking products and financial services. The first project will pilot the solution for the distribution of social grant payments to war victims.

"This contract is further proof of the versatility and strength of our UEPS technological offering," said Dr. Serge C.P. Belamant, chairman and CEO of Net1. "Our solutions will allow the Iraqi government to provide a national payment system that can deliver secure, flexible and affordable financial services to the Iraqi people. We look forward to working with our partners to assist with the upliftment of the Iraqi citizens' lives"

Net1 expects to commence this project in the fourth quarter of fiscal 2008 and expects to generate revenue from this contract in the first quarter of fiscal 2009. Under the agreement, Net1 will receive ongoing transaction and license fees, as well as payments for the provision of outsourcing services and the sale of hardware.

Brenda Stewart, Net1's Senior Vice President Sales and Marketing, added, "Net1 is extremely proud to provide Iraq with its technology, which will prove beneficial to all participants including financial institutions, government departments, the private sector and, most importantly, the citizens of Iraq."

Source: earthtimes.org