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Gemplus Setec acquisition approved by relevant authorities and finalized

Luxembourg, 2 June 2005, Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card based solutions, announces the closing of the deal for the acquisition of Setec, one of the leading companies in the electronic passport business and security printing technologies. All legal and regulatory procedures have been fulfilled and, as of 1 June 2005, the acquisition was finalized.

This alliance is an exciting step in strengthening Gemplus' leading position in the ID and Security market with major e-passport references including Denmark, Sweden, Norway and Singapore. It will broaden the scope for future organic and non-organic growth of the company and provide new technology while opening up new markets and regions for both Gemplus and Setec.

"There are strong, clear links between the two companies, and only few overlaps, which will make it easy to leverage each others' strengths", comments Jacques Seneca, Executive Vice President, Identity and Security business unit, Gemplus and Chairman of Setec, "Our customers and our employees are enthusiastic about the acquisition as they can see for themselves the complementarities in Telecom, Financial Services and, of course, in Identity & Security, for each region".

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 (2005), Frost & Sullivan, Datamonitor.). It has sold over 5 billion smart cards.

With security at its core, and 2400 patents and patent applications 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 2004 was 865 million Euros.

www.gemplus.com

For more information

Remi Calvet 
Senior Vice President, Corporate Communications 
Mobile tel: +33(0)622728158 
remi.calvet@gemplus.com

©2005 Gemplus. All rights reserved. Gemplus, 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.