Gemplus's GemAuthenticate(TM) Server Certified for the MasterCard OneSMART(TM) Chip Authentication Program

LUXEMBOURG, November 10 /PRNewswire/ -- Gemplus International S.A. (Euronext: LU0121706294 - GEM; NASDAQ: GEMP), the world's leading provider of smart card solutions, today announced that its user Authentication Server, GemAuthenticate(TM) was successfully tested against the MasterCard OneSMART(TM) Chip Authentication Program (CAP) specification. The approval makes it possible for financial institutions to use GemAuthenticate(TM) with the popular MasterCard authentication program. Gemplus is the first smart card manufacturer to achieve this certification.

Using the GemAuthenticate(TM) Server, MasterCard's customer financial institutions can secure customer access to online banking services and online purchases using two-factor authentication. Cardholders simply insert their standard EMV[1] card (something they have) into a portable reader, which is supplied to them by their bank, and enter their PIN (something they know). Each time a user enters their PIN, a one time password (OTP) is generated and used to authenticate the user over the bank's network. Users can then access their online banking services and make online purchases knowing that their personal information is safe and secure. In addition to reducing fraud, the solution helps to reduce password management costs.

"MasterCard partners with leading companies, such as Gemplus, to provide its customer financial institutions with the highly secure chip-based cardholder authentication programs needed for e-payment and e-banking channels," said Dr. Toni Merschen, senior vice president, Chip Center of Excellence, MasterCard International. "The MasterCard OneSMART Chip Authentication Program leverages existing EMV infrastructure and extends it into the virtual world."

"After delivering secure solutions in the physical world, Gemplus is now helping banks fight fraud in the virtual world with its GemAuthenticate(TM) Server," said Philippe David, Vice-President Business Development, Financial Services at Gemplus. "By combining this innovative solution with Gemplus' smart payment cards and readers, financial institutions can now seamlessly implement a strong authentication solution at minimal cost, while enjoying greater returns on their EMV investment."

The OneSMART Chip Authentication Program is part of MasterCard's SecureCode(TM) program, which extends MasterCard's guaranteed payment model to the Internet. Issuers have the option of selecting the authentication solution that best meets their business and risk management requirements. For the consumer, the benefits are also numerous. CAP offers a single access method to all banking services and secures online transactions with little impact to the overall shopping experience.

Gemplus will demonstrate GemAuthenticate(TM) at Cartes 2005, 15-17 November in Paris - Hall 3.

About GemAuthenticate

GemAuthenticate(TM) Server is a complete and open authentication platform that supports a wide range of authentication methods and any devices such as smart cards, connected and portable readers, tokens and mobile phone. With a combination of its authentication server, EMV smart cards and portable readers, Gemplus can now offer to their banking customers an end-to-end authentication solution.

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 5.5 billion smart cards.

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

For more information:

    
    Steve Lacourt                         Matthew McGuinness
    Gemplus Financial Services Business   Edelman
    Unit
    Tel: +32(0)2-711-48-20                Tel +44-207-344-1259
    Fax: +32(0)2-725-14-60                Fax +44-774-003-8921
    Email:                                Email:
    steve.lacourt@gemplus.com             Matthew.McGuinness@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.

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[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.