Gemplus

Gemplus and Surgutneftegazbank First to Deliver the New Generation of MasterCard Cards in Russia

Luxemburg and Moscow (ots/PRNewswire) - - State-of-the-art Technology Offers a More Secure Payment Solution to Bank's Customers Gemplus International S.A. (Euronext: LU0121706294 - GEM ; NASDAQ: GEMP), the world's leading provider of smart card solutions, today announces that the Russian bank, Surgutneftegazbank (SNGB), has chosen Gemplus to supply its new generation of off-line smart banking cards. These cards are compliant with the latest MasterCard specifications for EMV[1] (M/Chip 4.0) and utilise the DDA/CDA authentication[2] method. This deployment, the country's first adoption of such a smart card, will enable SNGB to deliver a safer and more secure payment solution to its customers. The new solution was delivered to SNGB in association with Gemplus' local long-term partner Cardhall Group of Companies: Gamma-Card delivered Gemplus' cards and Pronit developed and implemented the software personalization solution. The first cards have already been issued by SNGB. In Russia, off-line mode transactions, when bank terminals are not connected to bank systems in real-time, are very well developed. These necessitate stringent security requirements designed to prevent 'skimming' (the copying of card data onto a counterfeit card), particularly at ATMs or point-of-sale terminals. Today, many international payment schemes are based on on-line authorisation. The DDA/CDA smart card authentication system is the most advanced off-line security technology available, making such smart payment cards very difficult to copy. Gemplus' GemShare M/Chip 4.0 DDA/CDA has emerged as a particularly effective means to combat card fraud according to MasterCard standards. "SNGB selected Gemplus to supply these MasterCard smart cards on the basis of its experience in the financial services sector. Gemplus can provide the technology to enable the high security standards our customers expect for rapid, secure card payments," said Zaourbek Besolov, Chief of the Plastic Cards Department at Surgutneftegazbank. "This EMV compliant smart card provides significantly enhanced protection for banking cards against theft or fraud and the provision of Russia's first DDA/CDA solution reflects the reach of Gemplus' financial and banking expertise in emerging markets," commented Philippe Combes, Executive Vice President Operations and Financial Services, Gemplus. "This is a great message for banks to send out to their customers - that users can be safe in the knowledge that their cards are better protected from theft or fraud." "The MasterCard DDA smart card, developed in partnership with Gemplus, fulfills the requirements of Russian banks for state-of-the-art security features. The cooperation between MasterCard and SNGB demonstrates the ongoing momentum of EMV migration in Russian banks," added Andrey Korolev, Vice-President and General Director of the MasterCard Europe office in Russia. "Through chip technology, both cardholders and merchants can enjoy the benefits of a more flexible, better protected payment system." "The use of DDA/CDA cards offers the highest security level available with off-line payments. This is very important for the Russian market, where a lot of local payment systems work in off-line mode. The new technology enables customers to use well-known pre-authorised debit cards internationally. The cards from Gemplus, in combination with our personalization software, are a solid foundation for progressive EMV migration in a modern retail banking market," concluded Yury Tovb, General Director of Cardhall Group of Companies. About Gemplus Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP) is the world's leading player in the smart card industry in both revenue and total shipments (source: Gartner-Dataquest (2005), Frost & Sullivan, Datamonitor). It has sold over 5 billion smart cards. With security at its core, and 2400 patents and patent applications produced by its innovative R&D team, Gemplus delivers a wide range of portable, personalized solutions in areas including Identity, Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV, e-government, and access control. Gemplus' revenue in 2004 was 865 million Euros. www.gemplus.com About Surgutneftegazbank (SNGB) www.sngb.ru or eng.sngb.ru About CARDHALL Group of Companies www.cardhall.ru About MasterCard Europe www.mastercardintl.com/corporate/mastercard_europe For more information: Steve Lacourt Gemplus Financial Services Business Unit Tel: +32-(0)-2-711-48-20 Fax: +32-(0)-2-725-14-60 Email: steve.lacourt@gemplus.com Emma Williamson Edelman Tel: +44-(0)20-7344-1253 Fax: +44-(0)20-7344-1541 Email: emma.williamson@edelman.com (c)2005 Gemplus. All rights reserved. Gemplus, the Gemplus logo, are trademarks and service marks of Gemplus S.A. and are registered in certain countries. All other trademarks and service marks, whether registered or not in specific countries, are the property of their respective owners. Some of the statements contained in this release constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed or implied by such forward-looking statements. Actual events or results may differ materially. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this release include, but are not limited to: trends in wireless communication and mobile commerce markets; our ability to develop new technology, and the effects of competing technologies developed and expected intense competition generally in our main markets; profitability of our expansion strategy; challenges to or loss of our intellectual property rights; our ability to establish and maintain strategic relationships in our major businesses; our ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on our share price. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this release speak only as of this release. We are under no duty to update any of the forward-looking statements after this date to conform such statements to actual results or to reflect the occurrence of anticipated results. References: [1] EMV is a smart card payment standard that was created in 1996 by Europay, MasterCard and Visa (EMV), guaranteeing worldwide interoperability and security for payment. Benefiting card issuers, acquirers and cardholders, EMV is essential in the reduction of fraud and also provides opportunities for financial institutions to differentiate new services for cardholders. [2] To reduce the risk of card fraud, EMV standard defined dynamic offline authentication mechanisms based on asymetric cryptography. Both Dynamic Data Authentification (DDA) and Combined Data Authentification (CDA) smart card authentication systems generate an unique signature on every transaction, making it very difficult to copy. ots Originaltext: Gemplus Im Internet recherchierbar: http://www.presseportal.ch Contact: For more information: Steve Lacourt, Gemplus Financial Services Business Unit, Tel: +32-(0)-2-711-48-20, Fax: +32-(0)-2-725-14-60, Email: steve.lacourt@gemplus.com . Emma Williamson, Edelman, Tel: +44-(0)20-7344-1253, Fax: +44-(0)20-7344-1541, Email: emma.williamson@edelman.com

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