Investor PresentationBaird Business Solutions Conference

February 2011

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Safe Harbor Statement

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information.

The use of words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “intend”, “future”, “potential” or “continue”, and other similar expressions are intended to identify forward-looking statements.

All of these forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from the forward-looking statements.

These risks and uncertainties may include those discussed in the Company’s annual report on Form 10-K for the year ended June 30, 2010 on file with the Securities and Exchange Commission, and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Table of Contents

1. Corporate Overview

2. Strategic Vision & Opportunities

3. Business Overview

4. Financial Highlights

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Corporate Overview

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5

Net1 Snapshot

Addressable market of 4 billion under-banked people worldwide creates significant growth opportunities

2010 Revenue = $280 million; EBITDA = $127 million

2010 Fundamental EPS = $2.01 per share

2,500 Employees in 8 countries

Growing presence in over 20 countries

Valuation (based on CY2011 Consensus Estimates):

P/E = 6.5x EV/EBITDA = 4.6x FCF/EV = 14%

Net1 is a leading global provider of transaction processing and payment solutions and products

NASDAQ: UEPS; JSE: NT1 Market Cap = $475 million

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Recurring Revenue with Growth Opportunities

Over 80% of our revenue is generated by our recurring, transaction-based businesses

Established Businesses (~75% of pro-forma revenue):Either are currently, or have the potential to generate double-digit growth over timeIncludes CPS (pension & welfare), KSNET and EasyPayGrowth drivers: secular trends, market share gains, new products/services

Growth Businesses (~15% of pro-forma revenue):Some of our smaller businesses that either are, or have the potential to grow at a rate significantly greater than our established businessesIncludes Net1 UETS, Net1 UTA, FIHRST, and MediKreditGrowth drivers: financial inclusion, revenue synergies, new products/markets

Start-up Businesses:Include newer technologies such as Mobile Virtual Card, that we believe could grow into established businesses over time

Recent Developments

Renewed SASSA contract through September 30, 2011Long-term relationship since 1992Expect SASSA to issue long-term RFP in the near futureStrong competitive position and high barriers to entry

– Technology, track record, and distributionCurrently accounts for ~45% of revenue

Acquired KSNET in Korea#2 payment processor - the fastest growing and most profitable networkRepresents over 25% of pro-forma revenueCY 2010 revenue growth of 22% and operating income growth of 24%

Launched Mobile Virtual Card (VCPay™) in the United StatesPartnered with MetroPCS, MasterCard, MoneyGram, Bancorp & FSVOver 500,000 phones enabled with VCPay within first 4 monthsRecipient of multiple industry awards in January 20112011 focus on driving accessibility, awareness and adoption

EasyPay positioned for accelerating growth7

Key Growth Opportunities

KSNET • Industry leading growth and profitability• Revenue synergies – value added services, MVC, etc.

EasyPay• Market share gains – volume, retail locations, industries• Growing product offering and distribution channels

Mobile Virtual Card • Increase number of distribution partners across multiple geographies• Drive awareness and adoption via marketing and partnerships

New Countries• UEPS/FUSION

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Innovation

Innovation fuels growth and diversification

GeographicProduct/servicesCustomer

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Innovation is in our DNA, and we keep evolving in order to develop and implement relevant and effective solutions for our customers

Virtual Card

FUSION

MediKredit

Kiosks

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Strategic Vision &Opportunities

Net1’s Strategic Vision

South Africa: Be one of the leading providers of transaction processing services across multiple products and segments, including government, payments, payroll, healthcare and mobile;

Developing Countries: Leverage our success and expertise in multiple emerging economies around the world via the introduction of relevant, innovative and affordable technology, allowing governments to fulfill their financial inclusion objectives;

Developed Countries: Introduce our proprietary mobile payments technology to eradicate fraud in card-not-present transactions and facilitate money transfers; and

Remain at the Forefront of Innovation: Whether it is UEPS, Virtual Card or FUSION, Net1 will continue to focus on innovation and develop relevant solutions to solve real world problems. Transaction processing allows us to control or influence the implementation of value added services and products at the point of sale.

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Our mission has always been, and will continue to remain the provision of a secure and affordable electronic transaction platform and financial services for the world’s unbanked and under-banked populations

Global Unbanked/Under-Banked Population

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Total Adult Population

Use Financial Services

Do not use Financial Services

4.7 Billion 2.2 Billion

2.5 Billion

2.5 Billion Adults, or Over 50% do not use Formal/Semi-Formal Financial Services

Source: Financial Access Initiative, Honohan, 2008; UN Human Development Index

62% of the Unbanked Adults Live in Africa, Asia and Latin America

Source: Financial Access Initiative, Honohan, 2008; UN Human Development Index, World Bank

Our addressable market remains sizeable, with over 50% of the world’s adult population unbanked or under-banked

A Growing International Footprint

Leading provider of alternate payment systems in emerging, cash-based economies with significant unbanked or under-banked populations

Proprietary smart card electronic wallet technology delivers secure and affordable electronic transactions in an online OR offline environment

Over 25 million cardholders across over 20 countries

Significant transaction processor in South Africa, Korea, Ghana and Iraq

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Existing Operations

Targeted Geographies

Net1’s Transaction Processing Suite

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Social Grant Distribution

Payroll/Wage Payment

UEPS Banking

Mobile Payments/

Banking

3rd Party Switching/ Processing

Bill Payments/ Deductions

Money Transfers

Prepaid Utilities/ Airtime

Microloans/ Insurance

National ID

Medical/ Patient

Management

Healthcare Claims

Processing

Net1 Corporate Strategy

Build from an established base

Focus on key areas to drive long-term growth

Create value for all stakeholders

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Net1 Corporate Strategy

Build from an established base

Network effect: expand penetration and market share by focusing on our core products and investing in new customers/ capabilities – driving higher transaction volumes

Scale newer initiatives: dedicate resources to accelerate expansion of newer initiatives and grow adoption across private and public sector partners and channels

Drive synergies across units and geographies to implement best practices globally

Increase partnerships with best-of-breed local and global companies

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Net1 Corporate Strategy

Build from an established base

Focus on key areas to drive long-term growth

KSNET

EasyPay

Mobile Virtual Card

New countries with UEPS/FUSION

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Net1 Corporate Strategy

Build from an established base

Focus on key areas to drive long-term growth

Create value for all stakeholders

Achieve superior financial performance

Reduce customer, country and currency political concentration

Reinvest in R&D

Increase focus on market awareness

Improve management accessibility

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Business Overview

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Net1 Group Structure

Net1 UTA

Net1 UETS

VTU Other/Support Services

South African Transaction Based Activities

Cash Paymaster Services

IraqInternational Transaction Based Activities

Smart Card Accounts

Financial Services

Hardware/Software

% of 2Q11 Revenue

52%

19%

10%

2%

17%

Reported Segment

Business Units

Cash Paymaster Services – Pension & Welfare

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We are one of the largest and oldest suppliers to the South African government, with our contracts dating back almost 20 years

On a pro-forma basis, this business accounts for roughly 45% of revenue, down from more than 80% five years ago;

Contracts have largely been extended for one-year periods for at least the past five years, and are currently valid through September 30, 2011;

Net1 offered SASSA price and volume concessions effective July 1, 2010 in order to assist the agency reduce its cost of distribution;

We expect SASSA to issue a new, long-term RFP imminently, and believe we have significant competitive advantages particularly in rural areas where over 80% of our beneficiaries reside

CPS – Competitive Advantages

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Cost

- Zero cost to social grant beneficiaries- Minimal cost to others (1-3%)- No extra per transaction fees

- Mzansi A/c still costs 2-4%- Post Bank cheaper- 1 Free ATM withdrawal- Fee for every other transaction

Security

- Biometric security- Eliminates need for cash

- PIN-based security- Re-introduces cash

Distribution

- Over 9,000 physical pay points- Plus 4,800 POS terminals in rural areas- 50,000 POS nationally

- Limited infrastructure in rural areas- No bank/post office has more than 8,000 ATMs/Locations

Functionality

- Electronic loading- Electronic spending- Direct debits- Microloans- Other value added services

- Typically used for 1 cash withdrawal transaction

Accessibility

- Online OR Offline

- Online only

UEPS

Traditional Bank/

Post Office Solution

EasyPay

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Largest independent merchant processor in South Africa

*FY11 Volume reflects 1HFY11 volume annualized

Growth Areas:• Expand to tier 2 retailers• Increase network of bill issuers• Grow product offering• Introduce self-service Kiosks

One of the leading real-time healthcare claims processors in South Africa

Opportunity to leverage Net1’s expertise in biometric smart cards and payments

Uniquely positioned to process claims across both the insured and uninsured in South Africa

International growth opportunities in other Net1 countries

Leading third-party payroll and switching solutions company in South Africa

Customers include one out of every three of JSE 100 companies

Process monthly payments and deductions for 850,000 employees with a value of ~USD 10 billion per annum

Opportunity to cross-sell Net1 products like prepaid services, microloans, bill payments and insurance with a direct payroll deduction

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MediKredit and FIHRST

The acquisitions of MediKredit and FIHRST further expand Net1’s transaction processing capabilities in South Africa

KSNET has a leading position in a market with strong secular trends

KSNET

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• 2nd largest processor in Korea• Only payment processor in Korea to combine card

VAN, banking VAN and payment gateway• Card VAN represents >90% of revenues• CY2010 revenue growth = 22%, Operating income

growth = 24%

Business Overview

• Direct sales force focuses on large merchants• Over 260 agents focused on SME market• Processed 1.4 billion transactions in 2009 across

approximately 200,000 merchants

Sales Model

• Strong strategic fit • Revenue synergy opportunities• Geographic, product and customer diversification• Complementary & skilled management• Accretive business on a standalone basis

Strategic Rationale

In 2007 the Bank of Ghana selected Net1 to create a common platform for all electronicpayments as well as broadening the scopefor branchless banking across the country’slarge unbanked population

3m cards ordered/2.2m delivered

170+ community banks starting roll out

“Banking in a Bus” to be launched with transportation owners

Approval received for mobile payments

Fleet management solution and wage payment services under evaluation

Net1 began working with the Iraqigovernment in 2008 initially to distributesocial grants, and has since expanded theprogram to include point-of-sale roll out and wage payment for the military

3.5m cards ordered/2.3m delivered

1.9m beneficiaries enrolled

>3,000 recipients enrolled daily

400k military personnel to be paid monthly wages

Expansion from Baghdad to 15 provinces26

Net1 UETS activities in Ghana and Iraq

Net1 has rolled out national implementations in Ghana and Iraq over the past few years

Ghana Iraq

Hypothetical New Country Lifecycle

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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Hardware & Software revenue Transaction

revenue

Country X

Hypothetical Transaction Revenue Stream Demonstrates Scalability of our Platform

Year 1 Year 2 Year 3 Year 4 Year 5 Year 10

No. of Cards 100,000 500,000 1,000,000 1,500,000 2,000,000 4,000,000

Avg. Monthly Rev/Card ($)

$0.20 $0.25 $0.30 $0.40 $0.50 $2.00

Annual Revenue Opportunity ($M)

$0.24 $1.5 $3.6 $7.2 $12 $96

Mobile Virtual Card

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The safest way to pay. The simplicity of the business model requires no new hardware or any changes to the existing established relationships in the payment ecosphere

Ease of Use is Key for Consumer Adoption

www.myvcpay.com

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Financial Highlights

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Business Model Characteristics

• High recurring revenue

• Net Debt <1x FY2010 EBITDA

• Strong cash flow generation

Solid financial base

• Multiple growth opportunities

• Established, proven solution

• Joint venture / partnership opportunitiesStrong business momentum

• Established cardholder base

• Highly profitable add-on products/services

• Operating leverage drives margin growth

Significant operating leverage

Revenue

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$0

$50

$100

$150

$200

$250

$300

FY06 FY07 FY08 FY09 FY10 1HFY11

SA Transaction Int'l Transaction Smart Card Financial Services Hardware/ Sof tware

$196

$224

$254 $247

$280

$153

Consolidated Revenue, in $ Millions

Fundamental EPS

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$1.05$1.23

$1.55$1.46

$2.01

$0.75

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

FY06 FY07 FY08 FY09 FY10 1HFY11

Note: Fundamental EPS excludes amortization of intangibles, stock based compensation and one-time items.

Fundamental Earnings Per Share, in $

EBITDA

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$91

$108

$121$112

$127

$52

$0

$20

$40

$60

$80

$100

$120

$140

FY06 FY07 FY08 FY09 FY10 1HFY11

Adjusted EBITDA, in $ Millions

Note: Adjusted EBITDA excludes one-time items.

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Financial Summary - Segments

Transaction Based Activities are at the core of what we do($ Millions) FY06 FY07 FY08 FY09 FY10 1HFY11SA Transaction Based Activities Revenue 117.2$ 139.0$ 153.4$ 148.4$ 191.4$ 91.5$ Adjusted EBIT 60.7 80.1 86.0 85.4 110.2 39.1 Margin 52% 58% 56% 58% 58% 43%

Int'l Transaction Based Activities Revenue 17.4$ Adjusted EBIT 2.4 Margin 14%

Smart Card Accounts Revenue 36.2$ 34.6$ 35.9$ 29.6$ 32.0$ 16.4$ Adjusted EBIT 16.5 15.7 16.3 13.4 14.5 7.5 Margin 45% 45% 45% 45% 45% 45%

Financial Services Revenue 16.1$ 11.2$ 8.3$ 5.4$ 4.0$ 2.9$ Adjusted EBIT 6.9 3.4 1.9 1.3 2.9 2.2 Margin 43% 30% 23% 25% 72% 75%

Hardware/Software Revenue 26.6$ 39.2$ 56.4$ 63.4$ 53.0$ 25.6$ Adjusted EBIT 16.7 9.8 15.4 16.0 4.8 1.8 Margin 63% 25% 27% 25% 9% 7%

Starting in FY11, we provided SASSA with a price and volume discount, which adversely impacted the segment’s revenue and profitability

In 2QFY11, we closed our acquisition of KSNET in Korea, leading to the creation of a new segment

Contact:Dhruv ChopraVice President Investor Relations+1-212-626-6675dchopra@net1.com