Exhibit 99.1

Net 1 UEPS Technologies, Inc. Announces Fourth Quarter and Year-end June 30, 2006 Results

Johannesburg, South Africa (August 29, 2006) –Net 1 UEPS Technologies, Inc. (“Net1” or the “Company”) (Nasdaq: UEPS) today announced results for the fourth quarter and year ended June 30, 2006.

Results

The Company reported an increase in net income of 53% to $15.5 million for the three months ended June 30, 2006, from $10.1 million for the three months ended June 30, 2005. Earnings per common share and linked unit increased 42% to $0.27 for the three months ended June 30, 2006, compared to $0.19 for the three months ended June 30, 2005. Revenue increased 16% from $41.4 million for the fourth quarter of 2005 to $48.2 million for the fourth quarter of 2006.

The Company reported an increase in net income of 33% to $59.2 million for the year ended June 30, 2006, from $44.6 million for the year ended June 30, 2005. Earnings per common share and linked unit increased 30% to $1.05 for the year ended June 30, 2006, compared to $0.81 for the year ended June 30, 2005. Revenue increased 11% from $176.3 million for fiscal 2005 to $196.1 million for fiscal 2006.

Since the Company’s reporting currency is the U.S. dollar (“USD”) but its functional currency is the South African rand (“ZAR”), and due to the significant impact of currency fluctuations between the USD and the ZAR on the Company’s results of operations, the Company also analyzes its results of operations in ZAR to assist investors in understanding the changes in the underlying trends of its business. During the three months and year ended June 30, 2006, the ZAR was weaker against the USD than during the same periods in the prior year. The impact of these changes on results of operations is shown under the column “Change” in the table of key metrics included at the end of this press release.

In ZAR, the Company reported an increase in net income of 54% to ZAR 100.1 million for the three months ended June 30, 2006, from ZAR 65.0 million for the three months ended June 30, 2005. Earnings per common share and linked unit increased 43% to ZAR 1.74 for the three months ended June 30, 2006, compared to ZAR 1.22 for the three months ended June 30, 2005. Revenue increased 17% from ZAR 265.4 million for the fourth quarter of 2005 to ZAR 310.5 million for the fourth quarter of 2006.

In ZAR, the Company reported an increase in net income of 37% to ZAR 379.8 million for the year ended June 30, 2006, from ZAR 276.7 million for the year ended June 30, 2005. Earnings per common share and linked unit increased 33% to ZAR 6.73 for the year ended June 30, 2006, compared to ZAR 5.03 for the year ended June 30, 2005. Revenue increased 15% from ZAR 1,094.7 million for fiscal 2005 to ZAR 1,257.5 million for fiscal 2006.

Fourth Quarter Highlights

• $189.6 million in transactions were processed through our merchant acquiring system in the fourth quarter of fiscal 2006, compared to $87.6 million in the fourth quarter of fiscal 2005. During the three months ended June 30, 2006, 2,554,616 grants were paid through the Company’s terminal base, compared to 1,143,937 during the three months ended June 30, 2005;
• 4,038 terminals were in use at 2,381 participating UEPS retail locations as of June 30, 2006, compared with 3,235 terminals in use at 1,880 locations as of June 30, 2005. These numbers were comparable to March 31, 2006. The number of transactions processed per terminal of 643 during the three months ended June 30, 2006 was consistent with that during the three months ended March 31, 2006;
• UEPS transaction-based activities effected 11.0 million payments during the fourth quarter of fiscal 2006, a 10% increase over the number of payments effected during the fourth quarter of fiscal 2005;
• A total of 3,653,696 UEPS smart card-based accounts were active at June 30, 2006, compared to 3,353,603 active accounts at June 30, 2005;
• Hardware ordered in January 2006 totalling $2.4 million was delivered to Nedbank Limited; and

• Formation of SmartSwitch Nigeria (Proprietary) Limited with Diamond Bank Plc and Innovative Capital & Investments Limited.

Comments and Guidance

“I am delighted with our strong financial performance in fiscal 2006”, said Dr. Serge Belamant, Chairman and Chief Executive Officer.

“With the acquisition of Prism now finalized, we look forward to integrating Prism’s activities and expanding our product and service offering in fiscal 2007. We have identified a number of potential synergies and new revenue opportunities that we expect to realize from the Prism acquisition, and we are in the process of quantifying them, as well as our anticipated timeframe to realize the benefits. We intend to provide more detail around these opportunities before the end of the second quarter of fiscal 2007,” he added.

“On a stand-alone basis, without considering the accounting impact of or potential synergies from the Prism acquisition, we expect Net1 to grow its Rand earnings from its current activities by 20% to 25% in fiscal 2007. We anticipate Prism, on a stand-alone basis, to grow its Rand earnings by 25% to 30% in fiscal 2007. The effects of any fluctuations between the United States dollar and South African Rand will have an impact on our reported results,” he concluded.

“The financial effect of the Prism acquisition on our GAAP earnings for fiscal 2007 will be influenced by a number of factors,” said Herman Kotzé, Net1’s Chief Financial Officer. “While we expect our GAAP earnings to increase through the inclusion of Prism’s fiscal 2007 results and the potential synergies and cost savings we expect to realize from the acquisition, our GAAP earnings will also be diluted by the amortization of the intangible assets acquired, the stock based compensation charge for the options granted to Prism employees, the loss of Net1 interest income on the cash consideration paid for Prism shares and the costs associated with the integration of Prism’s activities into our own. We expect to incur the majority of the costs associated with the integration of Prism’s activities in the first and second quarters of fiscal 2007. We will illustrate the pro-forma financial effects of the Prism acquisition for fiscal 2006 on an amended Form 8-K during the next three weeks,” he concluded.

Stock options granted to Prism employees

In connection with the acquisition of Prism, the company has granted Prism employees options to purchase 904,674 shares of Net1’s common stock at an exercise price of $22.51 per share, which was the average of the high and low sales prices on the Nasdaq on the date of grant.

Conference call

Net1 will host a conference call to review fourth quarter and annual results on August 30, 2006 at 9:30 a.m EDT. To participate in the call, dial 1-800-860-2442 (U.S. only), 1-866-519-5086 (Canada only), 0-800-917-7042 (U.K. only) or 0-800-200-648 (South Africa only) five minutes prior to the start of the call. The passcode is “Net1”. The call will also be webcast on the Net1 homepage, www.net1ueps.com. Please click on the webcast link at least 10 minutes prior to the call. A replay of the call may be accessed through the Net1 website through September 19, 2006.

About Net1 (www.net1ueps.com)

Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. The Company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers. To accomplish this, the Company has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer. This offline capability means that users of Net1’s system can enter into transactions at any time with other card holders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1’s system can be used for banking, health care management, international money transfers, voting and identification. Net1’s recently acquired subsidiary, Prism, is a company focused on the development and provision of secure transaction technology, solutions and services. Prism’s core competencies around secure online transaction processing, cryptography and integrated circuit card (chip/smart card) technologies are principally applied to electronic commerce transactions in the telecommunications, banking, retail, petroleum and utilities market sectors. These technologies form the cornerstones of the “trusted transactions” environment and provide us with the building blocks for developing secure end-to-end payment solutions.

This announcement may contain forward-looking statements pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, development difficulties, foreign currency risks, costs of capital, the ability to consummate and integrate acquisitions, and other risks detailed in the Company’s SEC filings. The Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

Contact William Espley at Net1 Investor Relations at:
Telephone: (604) 484-8750
Toll Free: 1-866-412-NET1 (6381)

NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
for the years ended June 30, 2006, 2005 and 2004

		2006		2005		2004
		(In thousands, except per share data)
REVENUE	$	196,098	$	176,290	$	131,098
EXPENSE
Cost of goods sold, IT processing, servicing and support		50,619		50,682		39,134
General and administration		48,627		45,897		39,677
Depreciation and amortization		5,710		6,591		5,676
Costs related to public offering and Nasdaq listing		1,529		1,817		-
Reorganization charges		-		-		11,133
OPERATING INCOME		89,613		71,303		35,478
INTEREST INCOME, net		5,889		2,389		3,640
INCOME BEFORE INCOME TAXES		95,502		73,692		39,118
INCOME TAX EXPENSE		36,653		29,666		25,927
INCOME FROM CONTINUING OPERATIONS BEFORE EARNINGS FROM
EQUITY-ACCOUNTED INVESTMENTS		58,849		44,026		13,191
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS		383		536		87
NET INCOME		59,232		44,562		13,278
Net income per share
Basic earnings – common stock and linked units		1.05		0.81		0.40
Diluted earnings – common stock and linked units		1.03		0.80		0.38

NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
as of June 30, 2006 and 2005

		2006			2005
		(In thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	189,735		$	107,749
Pre-funded social welfare grants receivable		17,223			11,567
Accounts receivable, net		21,219			15,293
Finance loans receivable, net		6,713			7,760
Deferred expenditure on smart cards		656			3,014
Inventory		1,935			1,927
Deferred income taxes		3,237			3,354
Total current assets		240,718			150,664
LONG-TERM RECEIVABLE		946			969
PROPERTY, PLANT AND EQUIPMENT, net		3,757			6,216
EQUITY-ACCOUNTED INVESTMENTS		4,986			1,325
GOODWILL		13,923			14,636
INTANGIBLE ASSETS, net		5,649			7,944
TOTAL ASSETS		269,979			181,754
LIABILITIES
CURRENT LIABILITIES
Bank overdraft		20			-
Accounts payable		2,073			2,315
Other payables		28,575			18,000
Income taxes payable		12,455			14,038
Total current liabilities		43,123			34,353
DEFERRED INCOME TAXES		17,846			10,399
TOTAL LIABILITIES		60,969			44,752
SHAREHOLDERS’ EQUITY
COMMON STOCK, net of treasury shares
Authorized shares: 83,333,333 with $0.001 par value;
Issued and outstanding shares: 2006: 49,596,879; 2005: 28,548,269		50			29
SPECIAL CONVERTIBLE PREFERRED STOCK
Authorized shares: 50,000,000 with $0.001 par value;
Issued and outstanding shares: 2006: 7,315,099; 2005: 26,733,521		7			27
B CLASS PREFERENCE SHARES
Authorized shares: 330,000,000 with $0.001 par value;
Issued and outstanding shares (net of shares held by the Company): 2006:
53,900,752; 2005: 196,983,841		9			31
ADDITIONAL PAID-IN CAPITAL		105,792			71,960
TREASURY SHARES ISSUED: 2006: 147,973; 2005: 0		(3,958	)		-
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME		(9,763	)		7,314
RETAINED EARNINGS		116,873			57,641
TOTAL SHAREHOLDERS’ EQUITY		209,010			137,002
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	269,979		$	181,754

NET 1 UEPS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the years ended June 30, 2006, 2005 and 2004

		2006			2005			2004
					In thousands
Cash flows from operating activities
Cash received from customers	$	181,313		$	174,704		$	123,177
Cash paid to suppliers and employees		(83,434	)		(101,024	)		(72,825	)
Cash generated by operations		97,879			73,680			50,352
Interest received		14,496			16,308			15,362
Finance costs paid		(8,741	)		(13,974	)		(11,698	)
Income taxes paid		(27,857	)		(37,872	)		(12,121	)
Net cash provided by operating activities		75,777			38,142			41,895
Cash flows from investing activities
Capital expenditures		(1,821	)		(3,436	)		(2,802	)
Proceeds from disposal of property, plant and equipment		336			39			62
Proceeds from disposal of business		10			-			-
Long-term receivable granted		-			-			(937	)
Acquisition of and advance of loans to equity-accounted investments		(4,030	)		-			(707	)
Acquisition of intangibles		-			-			(1,345	)
Cash received on acquisition of Net 1 UEPS Technologies, Inc.		-			-			8
Net cash used in investing activities		(5,505	)		(3,397	)		(5,721	)
Cash flows from financing activities
Proceeds from issue of common stock		33,661			-			52,831
Proceeds from issue of special convertible preferred stock		-			-			847
Acquisition of treasury stock		(3,958	)		-			-
Proceeds from bank overdraft		20			-			17
Repayment of bank overdraft		-			(19	)		-
Cash distributions to shareholders		-			-			(37,002	)
Dividends paid		-			-			(40,753	)
Net cash provided by (used in) financing activities		29,723			(19	)		(24,060	)
Effect of exchange rate changes on cash		(18,009	)		(7,259	)		13,855
Net increase in cash and cash equivalents		81,986			27,467			25,969
Cash and cash equivalents – beginning of period		107,749			80,282			54,313
Cash and cash equivalents at end of period	$	189,735		$	107,749		$	80,282

Net 1 UEPS Technologies, Inc.
Attachment A

Key metrics and statistics at and for the three months and year ended June 30, 2006 and 2005:

Three months ended June 30, 2006 and 2005

										Three
										months
		Three months ended								ended			Year ended
		June 30,					Change			March 31			June 30
								Constant
		2006			2005			Exchange		2006			2005
		US$			US$		Actual	Rate (1)		US$			US$
Key statement of operations data, in
‘000, except EPS
Revenue	$	48,198		$	41,405		16%	17%	$	54,584		$	176,290
Operating income		23,001			16,326		41%	42%		25,042			71,303
Income tax expense		9,591			7,132		34%	35%		10,074			29,666
Net income	$	15,545		$	10,142		53%	54%	$	16,576		$	44,562
Earnings per share,
Basic		0.27			0.19		42%	43%		0.29			0.81
Diluted		0.27			0.18		50%	51%		0.29			0.80
Key segmental data, in ‘000, except
margins
Revenue:
Transaction-based activities	$	30,346		$	26,115		16%	17%	$	31,767		$	103,653
Smart card accounts		9,354			8,569		9%	10%		9,570			34,931
Financial services		3,673			4,573		(20)%	(19)%		4,200			20,215
Hardware, software and related
technology sales		4,825			2,148		125%	126%		9,047			17,491
Total consolidated revenue	$	48,198		$	41,405		16%	17%	$	54,584		$	176,290
Consolidated operating income (loss):
Transaction-based activities	$	16,576		$	12,604		32%	32%	$	16,428		$	44,233
Smart card accounts		4,252			3,895		9%	10%		4,351			15,878
Financial services		1,475			1,737		(15)%	(15)%		1,782			9,316
Hardware, software and related
technology sales		3,331			(114	)	nm	nm		5,449			5,689
Corporate/ Eliminations		(2,633	)		(1,796	)	47%	47%		(2,968	)		(3,813	)
Total operating income	$	23,001		$	16,326		41%	42%	$	25,042		$	71,303
Operating income margin (%)
Transaction-based activities		55%			48%					52%			43%
Smart card accounts		45%			45%					45%			45%
Financial services		40%			38%					42%			46%
Hardware, software and related
technology sales		69%			n/m					60%			33%
Overall operating margin		48%			39%					46%			40%
		June 30,			June 30,
		2006			2005
Key balance sheet data, in ‘000
Cash and cash equivalents	$	189,735		$	107,749		76%
Total current assets		240,718			150,664		60%
Total assets		269,979			181,754		49%
Total current liabilities		43,123			34,353		26%
Total shareholders’ equity	$	209,010		$	137,002		53%

(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the fourth quarter of fiscal 2006 also prevailed during the fourth quarter of fiscal 2005.

Three months ended June 30, 2006 and 2005 (continued)

						Three
						months
	Three months ended					ended		Year ended
	June 30,				Change	March 31		June 30
	2006		2005			2006		2005
Additional information:
Transaction-based activities:
Total number of grants paid:
KwaZulu-Natal	4,758,244		4,280,023		11%	4,606,938		16,774,940
Limpopo	2,874,214		2,622,807		10%	2,832,121		10,635,232
North West	815,746		787,567		4%	801,524		3,153,868
Northern Cape	397,809		377,845		5%	401,712		1,459,264
Eastern Cape	2,111,103		1,929,356		9%	2,088,799		7,410,272
	10,957,116		9,997,598		10%	10,731,094		39,433,576
Average revenue per grant paid:	ZAR		ZAR			ZAR		ZAR
KwaZulu-Natal	20.45		18.09		13%	20.19		17.85
Limpopo	16.21		15.62		4%	15.42		15.34
North West	18.08		16.29		11%	17.23		16.43
Northern Cape	20.46		19.18		7%	18.84		19.41
Eastern Cape	11.95		12.30		(3)%	11.98		12.35
UEPS merchant acquiring system:
Terminals installed at period end	4,038		3,235		25%	3,905		3,235
Number of participating retail
locations at period end	2,381		1,880		27%	2,352		1,880
Value of transactions processed
through POS devices during the
quarter (in $ ’000)	189,649		87,643		116%	187,841		87,643
Value of transactions processed
through POS devices during the
completed pay cycles for the quarter
(in $ ’000)	187,769		85,408		120%	171,022		85,408
Average number of grants processed
per terminal during the quarter	643		406		58%	643		406
Average number of grants processed
per terminal during the completed pay
cycles for the quarter	639		464		38%	584		464
Smart card accounts:
Total number of smart card accounts	3,653,696		3,353,603		9%	3,601,076		3,353,603
Hardware, software and related
technology sales:
Ad hoc significant hardware sales
(US$ ‘000)
Nedbank POS’s, pin pads, smart cards
and other hardware	2,400		-		nm	4,400		10,400
Smartswitch Namibia hardware and
software (before consolidation
adjustments)………….	-		-			1,200		-
Financial services: (US$ ‘000)
Traditional microlending:
Finance loans receivable – gross	7,169		7,212		(1)%	8,289		7,212
Allowance for doubtful finance loans
receivable	(3,448	)	(3,636	)	(5)%	(3,652	)	(3,636	)
Finance loans receivable – net	3,721		3,576		4%	4,637		3,576
UEPS-based lending:
Finance loans receivable –net and
gross (i.e., no provisions)	2,992		4,184		(28)%	3,855		4,184

nm – Statistic not meaningful

Year ended June 30, 2006 and 2005

		Year ended
		June 30,					Change
									Constant
		2006			2005				Exchange
		US$			US$		Actual		Rate (1)
Key statement of operations data, in
‘000, except EPS
Revenue	$	196,098		$	176,290		11%		15%
Operating income		89,613			71,303		26%		30%
Income tax expense		36,653			29,666		24%		28%
Net income	$	59,232		$	44,562		33%		37%
Earnings per share,
Basic		1.05			0.81		30%		34%
Diluted		1.03			0.80		29%		33%
Key segmental data, in ‘000, except
margins
Revenue:
Transaction-based activities	$	117,186		$	103,653		13%		17%
Smart card accounts		36,220			34,931		4%		7%
Financial services		16,129			20,215		(20	)%	(18	)%
Hardware, software and related
technology sales		26,563			17,491		52%		57%
Total consolidated revenue	$	196,098		$	176,290		11%		15%
Consolidated operating income (loss):
Transaction-based activities		60,653			44,233		37%		42%
Smart card accounts		16,464			15,878		4%		7%
Financial services		6,929			9,316		(26	)%	(23	)%
Hardware, software and related
technology sales		16,721			5,689		194%		204%
Corporate/ Eliminations		(11,154	)		(3,813	)	193%		202%
Total operating income	$	89,613		$	71,303		26%		30%
Operating income margin (%)
Transaction-based activities		52%			43%
Smart card accounts		45%			45%
Financial services		43%			46%
Hardware, software and related
technology sales		63%			33%
Overall operating margin		46%			40%
		June 30,			June 30,
		2006			2005
Key balance sheet data, in ‘000
Cash and cash equivalents	$	189,735		$	107,749		76%
Total current assets		240,718			150,664		60%
Total assets		269,979			181,754		49%
Total current liabilities		43,123			34,353		26%
Total shareholders’ equity	$	209,010		$	137,002		53%

(1) – This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the year ended June 30, 2006 also prevailed during the year ended June 30, 2005.

Year ended June 30, 2006 and 2005 (continued)

	Year ended
	June 30,				Change
	2006		2005
Additional information:
Transaction-based activities:
Total number of grants paid:
KwaZulu-Natal	18,117,676		16,774,940		8%
Limpopo	11,154,040		10,635,232		5%
North West	3,181,242		3,153,868		1%
Northern Cape	1,585,846		1,459,264		9%
Eastern Cape	8,204,977		7,410,272		11%
	42,243,781		39,433,576		7%
Average revenue per grant paid:	ZAR		ZAR
KwaZulu-Natal	20.14		17.85		13%
Limpopo	15.59		15.34		2%
North West	18.10		16.43		10%
Northern Cape	19.30		19.41		(1	)%
Eastern Cape	12.04		12.35		(3	)%
UEPS merchant acquiring system:
Terminals installed at period end	4,038		3,235		25%
Number of participating retail
locations at period end	2,381		1,880		27%
Value of transactions processed
through POS devices during the
quarter (in $ ’000)	189,649		87,643		116%
Value of transactions processed
through POS devices during the
completed pay cycles for the quarter
(in $ ’000)	187,769		85,408		120%
Average number of grants processed
per terminal during the quarter	643		406		58%
Average number of grants processed
per terminal during the completed pay
cycles for the quarter	639		464		38%
Smart card accounts:
Total number of smart card accounts	3,653,696		3,353,603		9%
Hardware, software and related
technology sales:
Ad hoc significant hardware sales
(US$ ‘000)
Nedbank POS’s, pin pads, smart cards
and other hardware	13,300		10,400		28%
Smartswitch Namibia hardware and
software (before consolidation
adjustments)………….	3,900		-		nm
Financial services: (US$ ‘000)
Traditional microlending:
Finance loans receivable – gross	7,169		7,212		(1	)%
Allowance for doubtful finance loans
receivable	(3,448	)	(3,636	)	(5	)%
Finance loans receivable – net	3,721		3,576		4%
UEPS-based lending:
Finance loans receivable –net and
gross (i.e., no provisions)	2,992		4,184		(28	)%

nm – Statistic not meaningful