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Gemplus first to deliver SIM-based branding solution to VIP customers of China Mobile

64K SIM-based STK Application Assists China Mobile in Brand Promotion Strategy

Luxembourg and China, 28 October 2004 - Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, announces today the first delivery of a SIM-based solution for brand management to China Mobile's Hunan Division (Hunan MCC). The solution is based on 64kb SIM cards and GemConnect Online1 and is the first Icon-based solution designed to reinforce Hunan MCC's brand to the Chinese market. The SIM cards will be available to VIP subscribers of the "GoTone" service.

The solution enables Hunan MCC's high-end users to view and download VIP service menus on their mobile phones, replacing the need to carry VIP cards and VIP service manuals. The user's profile and loyalty points, stored on a 64K SIM card, allow high-end users to view their icon-based2 subscriber status (Diamond, Gold or Silver) and use the handset as an identification method for exclusive services, such as discounts at Hunan MCC business partners and merchants and access to airport lounges. By selecting 'VIP Services" on the STK menu, subscribers are able to search and book services conveniently at the click of a button.

The solution will allow Hunan MCC to provide subscribers with their VIP status and timely service updates, as well as information on merchants, exclusive services and discounts via short message service (SMS). Hunan MCC can also upgrade the subscribers' VIP status as necessary, depending on their ARPU bracket. In addition, a handset tracking function stored in the SIM informs Hunan MCC of which handset is in use by the subscriber and sends an alert when the user changes mobile phone. This means that Hunan MCC is able to improve its customer service and propose new services.

Through these VIP brand services, Hunan MCC will be able to update their users more quickly. Based on the users' handset information, Hunan MCC can deliver a more comprehensive and customized service to subscribers while increasing its brand visibility and lowering logistics costs.

Hunan MCC Vice Director of Marketing Department, Ou Cheng, said, "Gemplus' brand management solution will strengthen our communications with VIP users, who are now able to receive the latest information, in a fast and convenient way. As a result, Hunan MCC is able to determine users' requirements faster, and to provide them with more personalized and exclusive services. We think that it will also benefit our management and brand equity."

"This project is recognition of the role of the SIM as a direct communication channel between the operator and their end-users. We worked with Hunan MCC for 3 months to define the requirements of their VIP application and are pleased to help promote "GoTone" with our brand management solution, said Alex Maes, General Manager, Telecom Business Unit, Gemplus Greater China. "Gemplus will continue to provide comprehensive solutions and professional service to China Mobile and is dedicated to the development of the wireless market in China".

1 - GemConnect Online is an interoperable dynamic SIM Toolkit solution that eases and speeds up the deployment of SMS-based services and updating of existing services

2 - Subject to mobile phones supporting icon displays from the SIM card.

About GoTone
As the core product of China Mobile, GoTone is a brand of digital mobile phone famed for having the largest number of users worldwide, supporting most new services and applications developed by China Mobile, including Caller ID, At-will Paging, SMS, IP Telephony, Mobile Securities, Dual-band Network, VPN, FNS, Mobile Secretary, Monternet, Mobile Bank, etc. Integrating closely into daily life and the working environment, GoTone is intended to provide users with more select features, allowing more communication solutions and greater added value.

The GoTone VIP Club is the platform through which China Mobile can deliver differentiated services to GoTone VIP card holders, including diamond, gold and silver card users. Through this platform, high-end users of China Mobile are able to enjoy Grade A benefits integrated with A-class web service, A-class customer service, and A-class extended service, such as 'Operator-assisted services and roaming services', cross-region services, account manager services and airport VIP lounge services.

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: Gartner-Dataquest (2004), Frost & Sullivan, Datamonitor.) It has sold over 4 billion smart cards.

With security at its core, and 2400 patents produced by its innovative R&D team, Gemplus delivers a wide range of portable, personalized solutions in areas including Identity, Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV, e-government, and access control.

Gemplus' revenue in 2003 was 749 million Euros.

www.gemplus.com

For more information

Rebecca Lee
Gemplus China PR Manager
Tel: +86 (10) 6410 8001#220
rebecca.lee@gemplus.com

Wang Xiao Qing
Edelman - China
Tel: +86 (10) 8519 1588#279
xiaoqing.wang@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.

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