Letter agreement effective January 31, 2007 between Net 1 UEPS Technologies, Inc. and the South African Social Security Agency extending Net1s service level agreement in the Kwa-Zulu Natal province

As you are aware, the South African Social Security Agency (“SASSA”) came into being on 1 April 2006 through the coming into force of the South African Social Security Agency Act, Act No. 13 of 2004 (the “SASSA Act”). As a result of the coming into force of the SASSA Act, the function of the payment of grants, and the responsibility and accountability therefore, now lies with SASSA. As a service provider involved in the payment of grants to beneficiaries, this affects your contract to provide these services.

In particular, we refer to –

the contract entered into between the Kwa Zulu Natal Provincial Government, Department of Welfare and Population Development (the “Department”) and Cash Paymaster Services Kwa Zulu Natal (Proprietary) Limited (the “Service Provider”) during 1 January 2000 (the “Agreement”) –

under which the Service Provider would provide grant payment services to the Department in accordance with the terms and conditions of the Agreement; and

the duration of which was, extended to 31 December 2006, in terms of a cession agreement entered into on or about 19 April 2006 as amended to 1 September 2006, between the Department and the Service Provider (“Cession Agreement”).

This letter serves to confirm that –

the Agreement shall no longer automatically terminate on 31 December 2006 as was provided for in the Cession Agreement; and

the duration of the Agreement is hereby further extended, until 31 March 2008, on the same terms and conditions on which the Agreement was entered into provided that

Kindly acknowledge your agreement of the extension of the Agreement as provided for in this letter by signing at the foot of this letter where indicated and return same to us by facsimile at ###-###-####/2256, marked for the attention of Mr B MAQETUKA.