Deployment Confirms Gemplus’ Position as the Leader in Providing Smart Cards and Smart Card-Based Solutions

Figures Illustrate That Over One in Three SIM Cards Currently Deployed In the Field Is Made by Gemplus

In the U.S., SIM Deployment Grew From 9 to 13 Million With Additional Volumes for the iDEN networks, (Source: EMC Database Q1’02) Which Is Proof of the Growing Confidence in SIM Technology

LUXEMBOURG, Aug. 21 /PRNewswire-FirstCall/–Gemplus (Nasdaq: GEMP), the world’s leading provider of smart card-enabled solutions, announces today that it has passed the 500 Million mark in terms of SIM (Subscriber Identity Module) cards deployed in the field. Since the standardization of GSM in 1992, Gemplus has consistently been the leader in smart card shipments for the telecom industry. To date, a total of 1.36 billion SIMs have been delivered globally with Gemplus providing more than one in every three SIM cards (Source: Gemplus Market Analysis).

With GSM reaching maturity, Gemplus has broadened its focus to include other telecom standards. For example, Gemplus has played a key role in the first card-based network for CDMA by supplying China Unicom with R-UIMs(1), and in Japan, supplied USIMs(2) for the first commercial launch of 3G by NTT DoCoMo. In the U.S., Gemplus has introduced the SIM in non-GSM environments such as iDEN with Nextel. They have also been supporting the migration from TDMA to GSM across the board.

With the emergence of a new ecosystem wherein content providers have entered the relationship between the operator and the end-user, the role of the smart card has evolved. Gemplus’ strategy is to lead the market by providing solutions based around the smart card, wherein the SIM reinforces its role as the unique direct link between the operator and the end-user, and also enables access for the content provider. As consumers drive operators to deliver new and better services, the SIM’s role becomes an architectural control point for the download, upload and deletion of applications, as well as to secure mobile transactions.

Philippe Vallee, president of the Telecom Business Unit, Gemplus, said, “Reaching this major milestone is evidence that the SIM has become a fundamental component of mobile telephony. There are very few companies who can say that they have delivered 500 million products. By consolidating our relationships with our clients and moving into the applications space, we are ready and looking forward to delivering the next 500 million.”

To support this, Gemplus is creating strategic partnerships with various companies to provide different solutions such as mobile payment, self-care and other CRM applications, location-based services and mobile entertainment. It aims to bring to market a range of mobile data applications that can be easily deployed and managed over the air.

“Frost & Sullivan believes that Gemplus’ recent move towards providing SIM-based solutions has allowed them to leverage on their existing experience and offer real value to their customers beyond simple smart card provisioning. Gemplus will continue to offer high-end solutions in the coming years as mobile operators realize the full security and CRM benefits that smart cards provide,” said Anoop Ubhey, senior smart card analyst, Frost & Sullivan.

“The Asian market is emerging as one of the strongest areas for dominant SIM growth. While growth in Western Europe is stabilizing, Asia is still on an upward curve. Of the 215 million new subscribers worldwide in 2001, 95 million were based in Asia Pacific (EMC database 2002),” said Jean-Philippe Betoin, chairman of the SIMalliance.

Passing the 500 million mark in SIM card shipments represents a substantial contribution to the overall growth of Gemplus, which has already delivered over three billion smart cards since its beginning in 1988. These cover the other growth markets of banking, ID, security, government, transport, retail and loyalty. Continued leadership has led Frost & Sullivan to award the prestigious Market Value Leadership to Gemplus in 2002.

About Gemplus

GEMPLUS: the world’s leading provider of smart card solutions. Gemplus helps its clients offer an exceptional range of portable, personalized solutions that bring security and convenience to people’s lives. These include mobile Internet access, inter-operable banking facilities, e-commerce and a wealth of other applications. Gemplus is the only completely dedicated, truly global player in the Smart Card industry, with the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation. In 2001, Gemplus was the worldwide smart card leader in both revenues and total smart card shipments (source: Gartner- Dataquest, Frost & Sullivan, BNP Paribas). Gemplus was also awarded the 2002 Frost & Sullivan Market Value Award for its exceptional performance. Gemplus trades its shares on Euronext Paris S.A. First Market and on the Nasdaq Stock Market as GEMP in the form of ADSs. Its revenue in 2001 was 1 billion Euros.

Gemplus: Beyond Smart http://www.gemplus.com

Gemplus and the Gemplus logo are the trademarks and service marks of Gemplus and may be registered in certain countries. All other trademarks and service marks, whether registered or not in specific countries, are the property of their respective owners.

1. R-UIM: Removable-User Identity Module
2. USIM: Universal Subscriber Identity Module