SchlumbergerSema Deploys CreditCall’s EmvX to Speed Compliance

CreditCall’s software is to be deployed in handheld and cashier ticketing terminals across the UK rail network through a major deal with SchlumbergerSema. The Company’s EMV software kernel will be deployed to make SchlumbergerSema’s 4,500 “Tribute” and “AVANTIX” mobile ticketing terminals, deployed in the UK rail network, EMV compliant. The terminals are expected to be “Chip and Pin” enabled by the end of this year. SchlumbergerSema has deployed CreditCall’s pre-built EMV Toolkit, which consists of two core products: “EmvX” and “EMV.LIB.” The product being used by SchlumbergerSema, “EmvX,” provides devices based on the Windows platform with a simple method of adding the EMV functionality. Since it uses an architecture that is native to the Windows platform it is faster and more reliable than solutions based on interpreted languages such as Java. “EMV.LIB” is a portable version of the EMV kernel designed for use in proprietary embedded systems where memory footprint and CPU usage are critical issues. CreditCall develops diverse applications including card-based telephony solutions, pay & display car parking, vending, ticketing and pay TV.

Axalto 4Q/03 Revenues Rise 6% Y/Y

Schlumberger’s Axalto, formerly known as Schlumberger Smart Cards & Terminals, reported revenue of $206 million for the fourth quarter representing a 6% increase over the same period last year and 2% sequentially. For the year, cards revenue was $717 million versus $658 million in 2002. Pretax operating income of $27 million increased 21% sequentially and 36% year-on-year. Sequentially, mobile communication card activity improved 12%, of which 3% was due to the strengthening of European currencies against the U.S. dollar. The increase was mainly in Europe due to strong demand coupled with a shift toward high-end products, which led to a pricing increase, and in North & South America, partially offset by lower demand in Asia. Axalto has 4,500 employees in more than 100 countries, with worldwide sales exceeding 2.6 billion smart cards to date. For complete details on Schlumberger and Axalto fourth quarter results visit CardData ([www.carddata.com][1])

[1]: http://www.carddata.com

AXALTO 3Q/03

Schlumberger reported that its revenues for smart cards increased 27% to
$202 million, compared to one year ago. Last month Schlumberger changed
the name of Schlumberger Smart Cards & Terminals to Axalto. Axalto had
pretax operating income of $22 million in the third quarter compared to
$8 million in the second quarter, and $7 million one year ago. Mobile
communication card deliveries increased significantly, with three
consecutive all-time monthly volume records. The average sales price of
SIM cards increased by 14% compared with the previous quarter due to
important deliveries of very high-end 64K and 128K cards, mainly in
Italy, Brazil, Russia, Romania, Saudi Arabia and the Philippines. Other
card activities were also significant, driven by shipments for the
banking conversion to the EMV standard in the UK, strong e-purse
deliveries in Malaysia, robust pay-TV shipments in the US, and high
volumes of phone cards and scratch cards in China and Mexico.

SCHLUMBERGER-SEMA SALE

Schlumberger has signed an agreement to sell SchlumbergerSema, its IT business segment, for $1.5 billion and says it is considering
the divestiture or IPO of its smart cards, point-of-sale terminals, payment systems, eCity terminals, payphones, and Infodata businesses. Separately the company announced that it has changed the name of its Schlumberger Smart Cards & Terminals unit to Axalto. Schlumberger Limited announced yesterday the signing of a binding agreement with the French firm Atos Origin for the sale of the majority of SchlumbergerSema businesses. The deal includes $1.5 billion in cash and stock representing approximately 29% of the common shares outstanding of Atos Origin. Schlumberger says that the name change for its Schlumberger Smart Cards and Terminals division will bring more visibility and reinforce the company image as a leading smart card player in a rapidly evolving market. The division opted for a name that best reflects its smart card and point-of-sale terminals strategy and highlights the key contributions of smart cards in today’s digital age. Following the announcement of the sale of its IT business, Standard & Poor’s upgraded the “STARS” ranking on Schlumberger from “Hold” to “Accumulate.”

Schlumberger Sells IT Business, Renames Smart Card Unit

Schlumberger yesterday announced it has signed an agreement to sell SchlumbergerSema, its IT business segment, for $1.5 billion and says it is considering the divestiture or IPO of its smart cards, point-of-sale terminals, payment systems, eCity terminals, payphones, and Infodata businesses. Separately the company announced that it has changed the name of its Schlumberger Smart Cards & Terminals unit to Axalto. Schlumberger Limited announced Monday the signing of a binding agreement with the French firm Atos Origin for the sale of the majority of SchlumbergerSema businesses. The deal includes $1.5 billion in cash and stock, representing approximately 29% of the common shares outstanding of Atos Origin. Schlumberger says that the name change for its Schlumberger Smart Cards and Terminals division will bring more visibility and reinforce the company image as a leading smart card player in a rapidly evolving market. The division opted for a name that best reflects its smart card and point-of-sale terminals strategy and highlights the key contributions of smart cards in today’s digital age. Following the announcement of the sale of its IT business, Standard & Poor’s upgraded the “STARS” ranking on Schlumberger from “Hold” to “Accumulate.”

UK Rail Industry Gets New Settlement System

Britain’s passenger train operators and SchlumbergerSema have completed development and implementation of the settlement system for the UK rail industry. Code named “LENNON” (Latest Earnings Networked Nationally Over Night), it is one of the world’s largest ever transport settlement systems capable of handling and allocating more than GBP 3.5 billion in annual passenger revenue to Britain’s passenger train operators.
“LENNON” also provides valuable marketing and customer-related data on 300 million annual ticket sales and usage patterns enabling train operating companies to better plan rail services to ensure that high levels of customer service are maintained at all times.

SMART CARDS 2002

Brussels-based Eurosmart reported that banking/retail smart cards grew 16% last year worldwide, reaching 175 million units. The industry group predicts that smart cards in this category will grow 17.1% in 2003 to hit 205 million units. Overall, more than 700 million microprocesor-based smart cards were shipped last year, with telecom making up 430 million of the total shipments. Eurosmart also reported that shipments of smart cards containing a memory chip with read/write capability and in some cases hardwired security functions totalled more than 1 billion last year, with 95% used in telecom. Memory cards are not considered smart cards by many. Eurosmart is the main international smart card association, representing the “Voice of the Smart Card Industry” for multi-sector applications. Its members include ASK, Ascom Monetel, Atmel, Cyber-COMM, Datacard, ELVA, Emosyn, FNMT, Fujitsu, Gemplus, Giesecke & Devrient, Hitachi, Incard, Infineon Technology, Ingenico, INSIDE Technologies, Microelectronica Esp., MCO, NEC, Oberthur Card Systems, ORGA, Philips Semiconductors, PPC Card Systems, Rafsec, Sagem, Samsung, SchlumbergerSema, Setec Oy, Sharp, STMicroelectronics, Thales e-Transaction, Wave Systems and Xiring.

SCHLUMBERGER-SEMA 1Q/03

SchlumbergerSema reported first quarter revenue of $793 million, a 2% decline over the previous quarter, but up 12% year-on-year. Pretax operating income was $15 million, a decrease of 55% sequentially, and an increase of $14 million year-on-year. Schlumberger said that revenue for volume products of $202 million decreased 22% sequentially, but improved 1% year-on-year. The year-on-year improvement was mainly due to a 7% growth in mobilecom cards principally in North America and Europe, offset by a decline in parking terminals due to the exceptional Euro currency retrofit program that extended into early 2002. The sequential decrease reflected the seasonal drop in mobilecom activity, following telecommunications operators’ traditional Christmas campaigns coupled with reduced activity in prepaid phone cards.

SchlumbergerSema 1Q/03

SchlumbergerSema reported first quarter revenue of $793 million, a 2% decline over the previous quarter, but up 12% year-on-year. Pretax operating income was $15 million, a decrease of 55% sequentially, and an increase of $14 million year-on-year. Schlumberger said that revenue for volume products of $202 million decreased 22% sequentially, but improved 1% year-on-year. The year-on-year improvement was mainly due to a 7% growth in mobilecom cards principally in North America and Europe, offset by a decline in parking terminals due to the exceptional Euro currency retrofit program that extended into early 2002. The sequential decrease reflected the seasonal drop in mobilecom activity, following telecommunications operators’ traditional Christmas campaigns coupled with reduced activity in prepaid phone cards. For complete details on Schlumberger’s first quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Cyberflex Access Award

SchlumbergerSema has received the “Product of the Year Award” from BiometriTech for its “Cyberflex Access” smart cards.  The system authenticates the user by matching the fingerprint to one digitally stored on the SchlumbergerSema smart card. Since this sensitive data is computed directly on the card without the need to rely on the availability or speed of a network for validation, the risk of the information being compromised is substantially eliminated.

WLAN SPECS

The WLAN Smart Card Consortium was launched this week to define
specifications for world-wide access to wireless LAN networks with smart
card security. A total of 19 companies and institutions have joined the
consortium as Founding Members, including major infrastructure providers,
card and chip manufacturers, start-ups, and academic institutions. The
participating firms include VISA, Gemplus, Oberthur, SchlumbergerSema, and
Infineon Technologies. The first challenge of the WLAN smart card
consortium is in specifying the use of the card in order to facilitate
smart card adoption. Liaison contacts have been established for 3GPP, IEEE,
the Wi-Fi Alliance, and smart card organizations such as the Java Card Forum.

TAXI CARDS

Crown Taxi of Toronto said yesterday it has experienced a 10-fold
increase in credit card transactions since installing wireless terminals in
its fleet five months ago. The taxi firm uses a system developed by
Vancouver-based eXcape Business Transactions. eXcape’s “fleetX” POS
terminals accept all payment card types including MasterCard, debit, VISA,
American Express, and Diners Club cards. Crown Taxi, which became the
first taxi company in North America to equip its entire fleet with wireless
point-of-sales terminals, has been experimenting with wireless
point-of-sale devices for two years. eXcape’s wireless POS devices were
developed in conjunction with SchlumbergerSema, Research in Motion, and
Rogers AT&T Wireless.