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U.S. Senator Arlen Specter talks smart cards with Gemplus at its Pennsylvania facility

Luxembourg, Horsham, PA, May 17, 2004 - Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, today reports the outcome of a visit by U.S. Senator Arlen Specter to Gemplus's Pennsylvania facility where the discussions focused on the growing need for smart cards within the federal government for secure building and information access.

Senator Arlen Specter, who sits on the Appropriations Department of the Homeland Security subcommittee, called for smart card use to improve processes for border and information security in America:

"We live in a very uncertain world where we need to identify people. It is can sometimes appear intrusive to be stopped and searched at an airport. There has to be a better way to identify people and simplify the security process at airports, for example, so it isn't unduly intrusive," said Senator Arlen Specter, during his visit to Gemplus. "The security and applicability that the smart card provides is outstanding and I'm pleased to have been of some help on the government procurement side of things to move it forward."

The U.S. government has embraced the smart card for its strong security, advanced processing powers, and its ability to control access to private identification data. There are many ongoing or planned smart credentialing programs within federal agencies.

During his tour of Gemplus's facility, Senator Arlen Specter met employees and witnessed first-hand the secure processes by which smart cards are produced. In operation since 1995, Gemplus's Montgomeryville, PA manufacturing facility is Visa, MasterCard, and ISO 9001, 9002, and 14000 certified, making it secure, as well as safe, healthy, and environmentally friendly. Gemplus has shipped more than 106 million smart cards from the Pennsylvania facility to date. With five offices in the U.S., including its local Pennsylvania facilities that employ approximately 200 people, Gemplus is committed to the local economy and its employees.

Commenting on his visit, Senator Arlen Specter said: "I was delighted to see the secure operations involved in manufacturing smart cards and to see so many good jobs here in Gemplus's Pennsylvania facility. Gemplus has a real important product because security and convenience are the waves of the future and this technology is at the center of them."

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 2002: Gartner Dataquest, Frost & Sullivan, Datamonitor.) It has the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation.

Gemplus offers an exceptional range of portable, personalized solutions that bring security and convenience to people's lives. These include Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Identity, WLAN, Pay-TV, e-government, access control, and a wealth of other applications.

Gemplus' revenue in 2003 was 749 million Euros.

www.gemplus.com

For more information, contact:

Kerry Butler 
Gemplus Americas PR Manager
Tel : +1 (215) 390 2840
Email: kerry.butler@gemplus.com

Larry Greenberg
Edelman - New York
Tel: +1 (212) 704 8277
Email: lawrence.greenberg@edelman.com

©2004 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.

Some of the statements contained in this release constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed or implied by such forward-looking statements. Actual events or results may differ materially. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this release include, but are not limited to: trends in wireless communication and mobile commerce markets; our ability to develop new technology, and the effects of competing technologies developed and expected intense competition generally in our main markets; profitability of our expansion strategy; challenges to or loss of our intellectual property rights; our ability to establish and maintain strategic relationships in our major businesses; our ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on our share price. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this release speak only as of this release. We are under no duty to update any of the forward-looking statements after this date to conform such statements to actual results or to reflect the occurrence of anticipated results.