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21.10.2003 – 10:00

Netilla Networks, Inc.

Dutch Ministry Deploys ActivCard Authentication to Positively Identify Employees for Netilla Remote Access Solution

    Fremont, CA and Somerset, NJ (ots)

    Working Together, ActivCard, Netilla, and Kahuna Networks Offer     SSL VPN Access With the Enhanced Security of Multi-Factor     Authentication

    ActivCard® (NASDAQ: ACTI), a leading global provider of Secure Digital Identity and Authentication solutions, and Netilla Networks, a leading provider of SSL VPN and secure application access management solutions, today announced that the Netherlands Ministry of Transport, Public Works and Water Management has implemented their combined solution for secure remote access. Working with leading Dutch systems integrator Kahuna Networks, the Ministry selected the Netilla Security Platform SSL VPN solution, ActivCard two-factor authentication tokens and ActivPack™ AAA server software for positive identification of remote access users to reap the benefits of:

    --  Versatile end-user VPN access from any location or device via SSL encryption embedded in standard web browsers -- to any client/server, web, or file sharing resource.

    --  Lower total cost of ownership of an SSL VPN solution protected by one-time-passwords that avoid traditional IT expenses of software installation,helpdesk services, password change policy enforcement, and leased token replacement.

    --  Increased security of strong authentication that eliminates vulnerabilities of static passwords as the weakest link in the chain of security -- and the risks from reusable passwords that are easily hacked, guessed or stolen by unauthorized parties.

    "From the beginning of our deployment, the enhanced security of ActivCard one-time-passwords and the Netilla SSL VPN solution have been simple to use," stated Geert Zimmermann, a consultant for the Ministry's IT department. "Through a single web-based user interface, our staff gains secure access to standard office applications and network resources -- regardless of their location and without installing client software. There was only one restraint in the beginning and that was access to local drives during sessions. Netilla solved that problem for us. As far as IT administrators are concerned, they emphasize no longer having to manage the remote clients for the now more than 200 satisfied customers."

    Demands for responsive government and the productivity improvements made possible by mobile computing led to the Dutch Ministry's initial decision to invest in a secure remote access solution. With over 2'500 employees and a breadth of responsibility for safeguarding Netherlands' transportation and water supply infrastructure for over 16 million citizens, Ministry employees require access to networks and applications from any location. Netilla's SSL VPN solution meets the need for streamlined connection to those services while working offsite, traveling on official matters, and for project management during evenings and weekends. ActivCard's ActivPack one-time-password authentication delivers the assurance that users are who they say they are prior to granting access to business-critical data via the VPN. Kahuna Network Solutions, a value-added reseller serving the Netherlands region, integrated and deployed the Ministry's Netilla / ActivCard solution.

    "Netilla provided a clear solution to address the Dutch Ministry's requirements: to extend access to key business applications to Ministry employees and authorized contacts around the world with the simplicity of a Web browser, but with stringent security controls," said Bryan Bain, vice president of marketing and business development at Netilla Networks. "Our collaboration with ActivCard employs strong two-factor authentication to ensure that only authorized users have access to this data."

    "Netilla's support for ActivPack authentication is instrumental in enabling 'trust-based' access to information," stated Ed MacBeth, senior vice president of worldwide channels and business alliances at ActivCard. "The Dutch Ministry's deployment has affirmed that ActivCard perpetual license hardware tokens offer a clear benefit over costly leased tokens which expire."

    "After analyzing the Ministry's requirements for global browser- based remote access to applications, combined with stringent security, Kahuna took the lead in integrating ActivCard and Netilla technologies to deliver a turnkey solution," said Rhett Oudkerk Pool, CEO of Kahuna, based in Amersfoort, The Netherlands. "We're pleased that the integrated solution we implemented not only met the needs of the Dutch Ministry, but can also be rolled out to other customers looking to deploy secure SSL-based VPNs."

      About ActivCard

      ActivCard,, is a leading global provider of
Secure Digital Identity and Authentication solutions for secure
remote access, secure sign-on and digital ID card solutions. Our
scalable systems and strong authentication solutions are trusted by
organizations -- from enterprise to governments around the world.
ActivCard IDM systems deliver maximum Return On Identity™ (ROI)
through increased security, reduced cost, and user convenience. The
modular product design allows our customers to add capabilities as
required, preserving their investment.

      About Netilla Networks

      Netilla Networks, Inc.,, is a leading global
provider of enterprise-class secure remote access solutions. The
Netilla family of SSL VPN appliances gives organizations the power to
make their mission-critical applications and resources instantly
available to employees and trusted partners anywhere via standard Web
browsers, while safeguarding internal networks. Compared to
traditional VPN technologies, the Netilla Security Platform is a
versatile, simple and quick-to-deploy solution that lowers the total
cost of remote access security management. Netilla's products are
available through a worldwide network of value-added resellers.

      About Kahuna

      Kahuna supports organizations that wish to do business online via
the Internet. Kahuna Network Solutions develops and manages the fast,
secure, and 100% reliable infrastructure essential for online
business. Kahuna is the market leader in the Netherlands in the field
of managed security. Kahuna Business Solutions helps organizations
with the management of e-mail traffic and web self- service client
contacts via the Internet. Kahuna offers an extensive array of eCRM
solutions, based mostly upon Kana products. Kahuna differentiates
itself through the fact that it can also manage the delivered
solutions for the client (outsourcing). The client doesn't just buy a
complex technology but benefits from the application's
functionalities. Some of Kahuna's clients include Airmiles, @Home,
Belastingdienst (Dutch Tax Authority), The City of Eindhoven, IB-
Groep, KPN Callcenters, Ohra en Wehkamp. A recipient of the
prestigious ICT Company Award for 2002 and Most Innovative Reseller
Award For 2003, Kahuna is ranked #4 in the Deloitte & Touche Fast 50.

    The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with fluctuations in operating results, our history of losses, the concentration of our customer base, our reliance on strategic relationships, acquisitions and managing our future growth, and other risks identified in our periodic filings with the United States Securities and Exchange Commission, including but not limited to those appearing under the caption "Risk Factors" in our Quarterly Report on Form 10Q for the fiscal quarter ended on June 30, 2003. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ActivCard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    ActivCard is a registered trademark, and ActivPack and Return on Identity are trademarks of ActivCard in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.

ots Original Text Service: Netilla Networks, Inc. Internet:

ActivCard Corporate
Julie White
Tel.      +1/510/574'1708

Netilla Corporate
Ted Dupont
Tel.      +1/732/652-5241

The Merritt Group
Tom Rice
Tel.      +1/703/748-3482

Eskenzi PR Ltd.
Yvonne Eskenzi
Tel.      +44/20/8449'8292

Consort PR
Tony Bovill
Tel.      +44/1344/626171