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Gemplus and IBM Join Forces to Deliver Worldwide Smart Card Solutions Cooperation to boost growth of global market



Luxembourg, February 28, 2001 - Gemplus and IBM today announced a services and technology agreement to collaborate on providing smart card solutions to customers of both companies worldwide.

As part of the agreement, Gemplus will combine their strength in card personalization, issuance and logistics, with IBM's systems integration capabilities and Chip Management System solution to offer robust, leading edge, smart card solutions across every industry sector.

"The IBM and Gemplus agreement will provide customers with integrated, end to end solutions that support their business needs. This cooperation significantly enhances our capability to deliver smart card solutions by drawing upon our respective capabilities. Customers and business partners will have increased access to a combination of multifunction smart cards, their applications and lifecycle management," said John Kirby, vice president, Global, Mobile e-business Services.

"Using the strengths of both our companies, IBM and Gemplus will capitalize upon this agreement to deliver best of breed solutions to fit our customers needs," said Gilles Michel, Executive VP Financial Services Gemplus. "Smart Card lifecycle management and integration services are crucial for a successful smart card implementation. This agreement will allow for one-stop shopping and an integrated approach.

"A major part of the companies' agreement will focus on the deployment of a Smart Card Life Cycle Management Application. Through using IBM's Chip Management System solution (CMS-e), subscribers will be able to update authorized data elements and add or delete entire applications directly onto the smart card. It will also allow issuers to control, monitor, update, or delete card applications such as the addition of new Public and Private Keys and payment or loyalty applications. Coupling the CMS-e system with the manufacturing, personalization, issuance, logistics and customization services of Gemplus will provide smart card customers a complete managed solution.

The IBM/Gemplus cooperation represents a significant step towards fulfilling the benefits and value of multiple applications being stored on a single card.


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About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM offers a wide range of services, solutions, and technologies that enable enterprises to take full advantage of the new era of e-business.

IBM has helped hundreds of companies deliver their services to wireless devices . To extend e-business to mobile e-business, IBM is exploiting its systems integration expertise, web hosting experience, and e-business application capability providing the reliability, scalability, global reach and security businesses need to succeed.

IBM can be found on the Web at http://www.ibm.com.


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About Gemplus
GEMPLUS: the world's leading smart card solutions provider.

Since its creation in 1988, Gemplus International S.A.(Euronext: Sicovam 5768 and NASDAQ:GEMP) has driven the global marketing and deployment of smart card-based applications for telecommunications, financial services and e-business security.

Gemplus is instrumental throughout the value chain - chip design, card management systems, software development, and consulting - delivering integrated custom-made solutions for the security, personalization and privacy management needs of clients and partners worldwide.

Gemplus technology has played a defining role in the development of wireless telephony since the introduction of SIM cards into the GSM standard in 1990. For more than a decade, Gemplus has pioneered applications that enable network operators around the world to answer the changing needs of their customers.

Gemplus was first to market with a 3G card and supplies a product range compliant with new and emerging transmission standards - 2.5G, 3G. In 2000, revenue was 1.205 BE, up 57% from the previous year's 767ME. Net income was 99 ME. Gemplus employs more than 7800 people in 37 countries worldwide.

Since 11 December 2000, Gemplus shares have been trading on Euronext Paris S.A. First Market and on Nasdaq in the form of ADSs.




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Contacts
Gemplus Corporate, Séverine Percetti
tel: 33 (0)4 42 36 67 67
email: Severine.Percetti@gemplus.com

IBM, Wynne Morris
tel: 33 (0)1 41 88 65 14
email: wynne_morris@fr.ibm.com




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