Gemplus to deliver SIM card-based solution to Oi for first GSM launch in Brazil

Leading smart card manufacturer develops OiChip to enable global roaming and content delivery through SMS in GSM mobile phones

July 1, 2002, Brazil - Gemplus (Euronext: Sicovam 5768 and NASDAQ:GEMP), the world's leading provider of solutions enabled by smart cards, announces an agreement with Oi, the Brazilian mobile telecommunications subsidiary of Telemar that operates the major GSM network in Latin America, to deliver a SIM (Subscriber Identity Module) card-based solution for the first launch of GSM in Brazil. To facilitate this, Gemplus developed OiChip enabling Oi to offer services including global roaming and content delivery through SMS (Short Message Service).

The removable OiChip will store important user data including subscription information, phone number and phone directories, eliminating the need for users to manually re-program this personal data every time they switch phones. In the case of a handset exchange, it is only necessary to place the SIM card into the new handset and it's ready. People can now dial the same mobile phone number, and the new handset will ring. This solution consists of Gemplus' latest range of SIM cards for GSM, a dynamic SIM Toolkit (STK) architecture based on the latest S@T specifications from the SIM Alliance and Gemplus' Over the Air (OTA) platform enabling the operator and user to remotely update the information and/or applications secured within the card. Gemplus is the only smart card provider in Latin America to have implemented such a platform.

"The need for wireless operators to differentiate their service offerings with mobile data and increased customer care is of the utmost importance, particularly as subscriber growth slows and global mobile markets becomes more competitive. This is particularly true in Latin America," said Bryan Prohm, senior analyst with Gartner Dataquest. "The launch of SIM-based secure mobile data services will enable carriers to compete for substantial emerging revenue streams, particularly in the lucrative contract sector. SIM cards have been the technology backbone of GSM mobile phones in Europe for years, and GSM is now seeing increased adoption among Latin American operators, who are discovering the competitive benefits of migrating to GSM and who wish to offer their subscribers more secure value-added services."

Every SIM card will be issued with a Dynamic STK agent, which means that from Day One, Oi will be able to offer their subscribers with a wide range of data and information services including content delivery, banking services and transactions, as well as entertainment services including chat, images and horoscopes. The use of STK technology, stored in the card, makes it easier for the end-user to manipulate the service, which in turn encourages uptake, use and wireless traffic on the network. Because of the intrinsic security of the card, the operator is able to create an environment of trust to encourage mobile commerce transactions.

"We want to fully explore the SIM card potential in order to offer online content delivery, information services and commercial transactions with complete security, which has never been experimented by any subscriber from the older telephony," affirms Alberto Blanco, marketing director from Oi.

"This project with Oi is very important to Gemplus. Not only is this the first launch of GSM in Brazil, but also it is the first deployment of Dynamic STK technology in the country," said Guillaume Lafaix, marketing director, Gemplus Latin America. "Data and information services are not just about offering more value to subscribers. They are also a way that the operator can learn more about their customers and then target services accordingly. Gemplus has already proven itself as the ideal partner for implementing new services and the trust that Oi has placed in our capacity to implement new services is a clear indication of our position as leader in this emerging wireless market. This is an exciting project in which we look forward to continuing our involvement."

Gemplus created the ARPU Factory in order to bring operators closer to their customers, reduce costs and increase subscriber loyalty. By providing a complete solution based around the smart card, Gemplus enables the operator to learn more about their subscribers' needs and offer new value-added services.

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 world number one in smart card shipments according to Gartner-Dataquest. Based on Eurosmart estimates, Gemplus shipped 34% of the worldwide market.

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 1.0 billion Euros.

Gemplus: Beyond Smart

About Oi

Oi: expects 500 thousand subscribers in its first year of operation

Oi, the only 100% Brazilian mobile telecom operator, owns the largest GSM network in Latin America with 2 thousand ERB s and an active area of coverage in 14 states and more than 200 districts. This subsidiary of Tele Norte Leste has an estimate of 500 thousand subscribers in its first year operating. In 2010, it is expected that this number grows up to 10 million, and that the company's market share will increase up to 25% within its range, becoming one of the four major companies in this industry in the country. Expecting to work in 16 Brazilian states, the operator will introduce in Brazil the most used telecommunication standard worldwide - GSM - employed by 70% of the mobile phone subscribers in the world, according to GSM Association. This new technology will enable an instant Internet access, location services (LBS), as well as data, video, photo, and music delivery.

www.oi.com.br

Contacts

Kerry Butler
Phone: +1 215 390 2840
kerry.butler@gemplus.com

Natalia Martinez
Edelman PR Worldwide
Tel: +54 11 4315 4020 ext. 33
natalia.martinez@edelman.com

©2002 Gemplus All rights reserved. Gemplus and 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. Sun, Java and Java Card are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.