Telia reduces churn by 11% in 4 months thanks to Predictive CRM solution from Gemplus

• Scandinavia's largest operator implements Gemplus' Predictive CRM solution, powered by SLP InfoWare
• Telia selects solution because of the speed of implementation and measurable ROI
• Solution demonstrates 11% churn reduction, only four months after delivery

Version française

Gemenos, France, June 26, 2002 - Gemplus (NASDAQ: GEMP), the world's leading provider of smart card solutions announced today that Telia, Scandinavia's largest operator, has implemented its Predictive Customer Relationship Management (P-CRM) Suite, powered by SLP InfoWare. Implemented by Cap Gemini Ernst & Young, the solution is being used in Telia's fixed line business in Sweden, in order to reduce churn and increase average revenue per user (ARPU). Demonstrating a clear return on investment, initial results demonstrate an 11% reduction in churn, only four months after delivery.

Churn/CPSTM has enabled Telia to leverage existing customer data in order to predict customer behaviour, allowing the operator to identify and move to retain those customers most likely to churn. With the automated modelling and campaign simulation provided by Gemplus' P-CRM solution, Telia can efficiently target at-risk customers with cost effective offers, resulting in significantly improved retention rates. Significantly, Gemplus is able to clearly measure return on investment for each individual retention campaign.

"We now have easy-to-use software to enable us to perform 'what-if' type analysis of our marketing campaigns through simulation. The total cost of a campaign and expected results can be calculated before it is actually launched," said Bernt Akerstrom, Head of Business Intelligence, Telia. "We can also measure marketing campaigns to determine which offers and segments are the most profitable. Gemplus' P-CRM solution, powered by SLP InfoWare, has made our marketing campaigns more efficient and effective."

Telia selected the solution because of its fully automated, closed loop P-CRM cycle that allows fast and smooth integration between each single step of the process: from data refreshment, and behaviour analysis to the design, optimisation, execution and tracking of marketing campaigns. This speed is vital in churn prevention campaigns as operators only have a limited amount of time to influence customers planning to cancel their contract or reduce their usage.

With the positive results achieved so far, Telia is also looking to launch up sell and cross sell projects with Gemplus' SLP InfoWare over the next three months. These projects are designed to increase the potential of generating new revenue from existing customers by targeting them with additional services.

"Telia is the largest operator in Scandinavia and one of the most technically advanced operators in the world and we are pleased to be working with them to extend the life and value of their customers," explained Philippe Vallée, President Telecom Business Unit, Gemplus. "We believe the predictive intelligence provided by our P-CRM solution improves customer knowledge and relationships, both of which are vitally important in today's competitive telecoms environment."

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 www.gemplus.com <http://www.gemplus.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.

About Telia

Telia (www.telia.se) is the leading telecommunications operator on the Nordic Market.
During the last year Telia has refined the company to be focused on the core business and to increase the flexibility.
The four core business of Telia are: Mobile Communication, Internet Services, International Carrier and Fixed Line Services.
Telia is listed on the Stockholm Stock Market. Revenue in 2001 was 5.3 billion Euros.

Contacts

Gemplus

Jane Strachey
Press Relations Manager
Telecom Business Unit
Tel: +33-4-42-36-46-61
jane.strachey@gemplus.com

Samantha Kay
Edelman PR Worldwide
Tel: +44-20-7344-1235
Samantha.kay@Edelman.com

Telia

Bernt Åkerström
Business Intelligence Manager
Tel: +46317706956
Bernt.g.akerstrom@telia.se