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Gemplus announces organizational changes

Luxembourg, 20 January 2004 - Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card based solutions, announces that in line with its strategy for 2004, it has appointed two new members of the Operations Committee, reporting to Alex Mandl, CEO and it has adjusted its internal organization in order to adapt to evolving market conditions, and to better serve its customers.

Ernie Berger is joining Gemplus in the United States as the President of Gemplus North America and is based in the Philadelphia, Pennsylvania area. Mr. Berger has 15 years of experience in the financial services sector with American Express and First USA, a Bank One company, where he held senior management positions. He successfully launched multiple new products, managed national branding campaigns, and grew profitability. More recently, Mr. Berger was instrumental in the start-up of new business ventures, first with Walker Digital, and then through his own consulting firm, acting as a "start-up CEO". He holds a Bachelor of Science in Mechanical Engineering from Columbia University in New York, and an MBA from the Wharton School, University of Pennsylvania, in Philadelphia.

Rémi Calvet is joining Gemplus as the new Vice President Corporate Communications. Mr. Calvet holds a B.A. in Corporate Law, and an MBA from HEC (Hautes Etudes Commerciales) in Paris. After five years with Unilever and DMC (a leading European Textile group) in auditing and strategic planning, Mr. Calvet joined Philip Morris International. During his ten years with Philip Morris, he had various responsibilities based in Paris, Brussels, and Lausanne in Business Planning, Corporate Affairs, Government Relations, and Communications.

At the same time, Gemplus is building a more efficient organization and refocusing its approach to customers in three key segments: telecommunications, financial services, and ID and security. The former "Financial and Security Services Business Unit" has been divided into two distinct entities: the Financial Services Business Unit, comprising banking, retail, transport, and conventional cards; and the ID & Security Business Unit, comprising ID, security and smart card interface (hardware and readers). With this new focused structure Gemplus will be able to build a closer relationship with its customers and benefit from all of the growth opportunities in each of the markets.

Justin D'Angelo, will head the Financial Services Business Unit as Senior Vice President. In his new role Justin will report to Philippe Combes, Executive Vice-President, Operations and Financial Services. Jacques Seneca will head the Security Services Business Unit, in addition to his existing duties as Executive Vice-President, Business Development Group.

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 helps its clients offer 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. 
www.gemplus.com

For more information

Marielle Bricman, Press Relations
Gemplus
Tel : + 33 4 42 36 55 96
E-mail: marielle.bricman@gemplus.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.