Gemplus becomes the first company validated to deliver 64K smart cards for the next phase of the U.S. government's largest smart card program

Luxembourg, Horsham, PA, April 28, 2004 - Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, today announces that it obtained FIPS 140-2 validation of its 64K smart card equipped with the applet required by the Defense Manpower Data Center (DMDC) for the next phase of the U.S. Department of Defense's (DoD) Common Access Card (CAC) program. Receiving the FIPS 140-2 validation on April 9, 2004, Gemplus becomes the first company validated to deliver smart cards that comply with the requirements for the next generation CAC.

The DMDC plans to begin purchasing Java™ technology-based 64K smart cards for the next generation CAC later this year and anticipates issuing the new cards in the beginning of 2005 to active duty military personnel, Selected Reserve, DoD civilian employees, eligible contractor personnel, and civilian employees of other Federal Agencies who require access to DoD networks to perform their duties. The next generation CAC has double the memory size of the 32K smart cards deployed in the first phase, in order to include additional digital certificates, functionality, and allow more applications and data to be stored on the cards. More significantly, it will comply with Version 2.1 of the Government Smart Card Interoperability Specification (GSC-IS 2.1). GSC-IS 2.1 has been designed to improve interoperability across the Federal government and agency boundaries and the adoption of GSC-IS 2.1 by the DMDC is a significant milestone.

The CAC is used for standard personnel identification and authentication, to authorized individuals, to secure networks, as well as to digitally sign and encrypt documents such as secure e-mail and travel requests.

"The DoD is an internationally recognized leader and innovator in technology and information security. The CAC program is clearly the largest U.S. government smart card initiative to date and sets the benchmark for other U.S. Federal agencies that are planning similar smart credentialing programs," said Ernie Berger, President of Gemplus North America. "Gemplus sees considerable potential for the smart card's use in the many ongoing or planned Federal and State government initiatives, which, upon completion, could potentially issue more than 28 million smart cards ¹."

The General Services Administration (GSA), National Aeronautics and Space Administration (NASA), and the Departments of State, Homeland Security, Interior, and Treasury will use smart cards for secure building and/or network access for employees and contractors. The Transportation Security Administration (TSA) plans to issue smart cards to 15 million transportation workers to secure access to airports, seaports, railways, and other locations, as part of its Transportation Worker Identification Credential (TWIC) program. The Department of State plans to integrate smart chips into U.S. and Visa Waiver Program passports, while Immigration and Naturalization Services (INS) is piloting smart cards for an Entry/Exit program.

Gemplus's FIPS 140-2 validated 64K Java technology-based smart card is part of Gemplus's SafesITe solution for corporate security. The SafesITe system provides customers and system integrators with all the products (cards, readers, & software) and services necessary for easy deployment of multi-purpose employee cards.

1. Source: U.S. General Services Administration's "Government Smart Card Handbook"; February 2004

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

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, the Gemplus logo, and SafesITe are trademarks and service marks of Gemplus S.A. and are registered in certain countries. Sun, Java and Java Card are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All other trademarks and service marks, whether registered or not in specific countries, are the property of their respective owners.

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