Oberthur Expands U.S. Card Plants

Oberthur Card Systems has launched a multi-million dollar expansion at its U.S. manufacturing facilities and personalization centers. The company installed two new presses in 2007 for its card manufacturing facilities and will add more presses and finishing equipment over the next 12 months, more than doubling its contactless capabilities. Additional investments will be made in the company’s smart card manufacturing capacity, including contact, dual, and dual-hybrid cards. The company will hire and train new associates to further emphasize customer service, allow for accelerated delivery and reduce time to market of new products. Oberthur also plans to standardize processes at its U.S. plants and increase the number of cards that can be printed on a sheet, which will permit more printing.

2008 May Develop as Year of the Smart Card

Oberthur Card Systems is predicting that for 2008 the popularity of smart cards in the USA will be explosive. Americans have been true laggards in the adoption of smart card technology due to the huge investment in its magnetic stripe infrastructure. Oberthur notes that the first large-scale adoption of smart cards was for French pay phones in 1983. Then in Europe in the early ’90s, MasterCard, VISA, and Europay agreed to develop specifications for the use of smart cards in payment cards. The Company also says that currently 17 of its top 20 customers, as well as the federal government, have embraced microprocessor chip cards. But, Oberthur says this summer it had two key concerns: whether banks with pilot projects would adopt contactless cards and if banks already using contactless cards would re-issue. The Company says both of these things are happening — pointing to a robust smart card next year. JupiterResearch predicts that microprocessor chip cards are likely to be in more than 75 million American wallets or cell phones before the end of 2008 and more than 128 million will be in circulation by 2009.

OBERTHUR SMARTCARDS

Oberthur Card Systems is predicting that, for 2008, the popularity of
smart cards in the United States will be explosive. First implemented in
France during the early-1980’s, then throughout the rest of Europe
by the end of the 20th century, experts have been predicting that
acquirers in the United States would be soon to follow. Based on current
figures, projections include nearly 75 million American customers will be
using smart card solutions before 2009 and 128 million by 2010. Oberthur
Card provides card-based solutions, software and smart card applications,
had sales of EUR524 million in 2006, with payments & services accounting
for 47% of revenues and mobile communications accounting for 37% of the
revenue.

Oberthur Dominates the U.S. Contactless Market

During 2006, Oberthur Card Systems produced more than 36 percent of the estimated 36 million contactless banking cards. Oberthur saw Payment & Services attain 47% of 2006 revenues and Mobile Communications were 37% of 2006 revenues. Aberdeen Research Group estimates that by 2011 the total contactless cards in the U.S. market will be 109 million cards. Oberthur Card Systems is a global provider of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization with sales of 524.0 million Euros in 2006.

Oberthur Has Received Best Vendor Award

For the manufacturing of over a million of “MoneytIC Chrysalis”
cards within its EMV migration process, Oberthur Card Systems
was awarded the “2006 Best Vendor Award” by Santander Mexico.
Santander is the 10th largest bank in the world and has been in
collaboration with Oberthur on smartcard projects since 2004.
Oberthur had sales of 524 million euros in 2006.

Oberthur Receives EAL+4 Certification

Oberthur has received EAL +4 certification on its “ID-One ePass”,
giving European Union members commercial source of electronic
passports. This also certifies that the solution meets Basic Access
Control requirements and “Active” security. This gives the group an
advantageous position in the ID market with a comprehensive edge
in the e-passport market. The company had sales of 524 million euros
in 2006 in card-based solutions, software and applications.

Oberthur Cards Appoints NA Managing Director

Oberthur Card Systems has appointed a new regional managing director for
the North American market. Martin Ferenczi will replace Phillipe
Tartavull as
the companies’ American managing director. As one of the worlds’ leading
provider of card-based solutions, software and applications, Oberthur
had sales of
500.8 million Euros in 2005, 53% of which was revenue from card services &
payment. Close to its customers, the company benefits from an industrial
and
commercial presence across all five continents.

BofA Picks Oberthur Card Systems for Fobs

Bank of America has chosen Oberthur Card Systems to provide contactless payment fobs as part of a trial to test radio frequency contactless payment companion devices. The Bank of America user acceptance trial program will distribute Oberthur’s VersaFOBs with MasterCard PayPass as companion devices to its traditional credit cards. VersaFOB is a contactless payment sub-card that snaps out of a full-size payment card and is inserted in a key-chain casing. Oberthur will supply the cards and fob casings, while Bank of America will handle personalization and fulfillment in-house. MasterCard has certified the Bank of America VersaFOB trial program. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

Oberthur to Supply Smart IDs for the DoD

Oberthur Card Systems is set to supply one million smart IDs for the U.S. Department of Defense. U.S. Bancorp (NYSE:USB), with assets of $213 billion, is the 6th largest financial holding company in the United States. The company operates 2,434 banking offices and 4,966 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications, including SIM and multi-application smart cards, as well as services ranging from consulting to personalization.

Oberthur Rolls Out FIPS 201 Smart Card

Oberthur Card Systems has become the first provider of
a “FIPS 201” certified smart card. With this certification, Government
Agencies and other organizations now have a commercial source of dual
interface smart cards to meet requirements as part of Homeland Security
Presidential Directive 12. Oberthur Card Systems government smart card
products are manufactured and personalized in the United States in ISO
certified environments; a significant advantage for agencies looking for
a shared services provider of ID credentialing.

Oberthur Buys a South African Card Firm

Oberthur Card Systems has acquired South Africa’s card manufacturer Africard for approximately $3 million. The Johannesburg company will be renamed Oberthur Card Systems South Africa. Africard has been in business for 15 years and has a production capacity of 30 million cards per year. South Africa has more than 20 million banking cards in circulation. Oberthur is the number one supplier of Visa and MasterCard payment cards worldwide.

Oberthur Card Systems Acquires Africard

Oberthur Card Systems has acquired South Africa’s card manufacturer Africard for approximately $3 million. The Johannesburg company will be renamed Oberthur Card Systems South Africa. Africard has been in business for 15 years and has a production capacity of 30 million cards per year. South Africa has more than 20 million banking cards in circulation. Oberthur is the number one supplier of VISA and MasterCard payment cards worldwide.