OBERTHUR SCA OSCA

Oberthur Technologies has been recognized with the 2008 award for “Outstanding Smart Card Achievement” by the Smart Card Alliance
multi-industry association for its roles and leadership in the North
American smart card marketplace. Initiatives such as these demonstrate
the SCA focus on stimulating the understanding, adoption and widespread
application of smart card technology and has recognized Oberthur with
the OSCA for its innovative achievements. Oberthur is actively involved in a wide range of smart card-based products including: “SIMphonIC Flybuy; the “Dual Hybrid ID One Cosmo” card for physical and logical access; and the “VersaFOB.”

OBERTHUR 2Q/03

The top supplier of VISA and MasterCards reported it delivered more than 28 million microprocessor cards during the second quarter including 11.2 million smart payment cards. Oberthur Card Systems reported total 2Q/03 revenues of $111.1 million, a 5.6% decline over 2Q/02 (at constant exchange rates). Second quarter revenues for smart payment cards increased 5.4% to $22.3 million. However, sales of banking magnetic stripe cards, loyalty cards, scratch cards and memory cards declined 29.7% to $19.9 million. Sales of SIM and ID cards for the second quarter totaled $42.9 million. Oberthur says the decline was due to its voluntary withdrawal from memory card activities as well as from the decrease in the value of the dollar versus the euro. But, sales of magnetic stripe cards has been stable despite the migration towards smart cards.

Oberthur Ships 22.2 Million Smart Payment Cards This Year

The top supplier of VISA and MasterCards reported this morning it delivered more than 28 million microprocessor cards during the second quarter including 11.2 million smart payment cards. Oberthur Card Systems reported total 2Q/03 revenues of $111.1 million, a 5.6% decline over 2Q/02 (at constant exchange rates). Second quarter revenues for smart payment cards increased 5.4% to $22.3 million. However, sales of banking magnetic stripe cards, loyalty cards, scratch cards and memory cards declined 29.7% to $19.9 million. Sales of SIM and ID cards for the second quarter totaled $42.9 million. Oberthur says the decline was due to its voluntary withdrawal from memory card activities as well as from the decrease in the value of the dollar versus the euro. But, sales of magnetic stripe cards has been stable despite the migration towards smart cards. Obethur’s revenues from the Americas region represented 28% of its global revenues. For complete details on Oberthur Card Systems’ second quarter results visit CardData (www.carddata.com).

GSM SIM CARDS

China Unicom has ordered six million “SIMtonIC” GSM SIM cards from
Oberthur Card Systems. The order follows the announcement in February of an
order for 7.5 million high-end 32K SIM cards for China Unicom_s CDMA and
GSM networks. The cards will be manufactured and personalized in Oberthur
Card Systems_ Shenzhen production site, which is “ISO 9001 version 2000”
certified.

OBERTHUR CARDS

Oberthur Card Systems has been selected by China Unicom to deliver
7.5 million 32k high-end SIM cards by mid-year. The cards will be
manufactured and personalized in Oberthur Card Systems’ ISO 9001 version
2000-certified Shenzhen plant. China Unicom, the second largest wireless
carrier in China, had a total of 64 million subscribers. China Unicom
operates both a GSM and a CDMA network.

3G CARDS

Commonly used to secure access on mobile phones, SIM cards will play an even more critical role with the arrival of 3G networks creating authentication and data integrity, securing payments made via mobile devices (m-commerce) or digital rights management (DRM) when accessing multimedia content. Oberthur is the first to launch a 3G card and to demonstrate games and music applications that run on SIMphonIC 3G, thus adopting a service approach rather than just a traditional hardware supplier. While 3G is the coming network for carriers to adopt, Oberthur’s range of SIM cards are fully interoperable and take advantage of the latest technologies available on current 2G networks. A summary of the announcements being made by Oberthur Card Systems:

— ATLAS TELECOM MOBILE AND OBERTHUR CARD SYSTEMS ARE BREAKING NEW
GROUND IN THE GSM WORLD!

Atlas Telecom Mobile and Oberthur Card Systems launch the KidPhone, the world’s first information and entertainment service by SMS for preteens. The KidPhone allows kids to send and receive short messages from any GSM phone, anywhere, anytime.

— OBERTHUR CARD SYSTEMS’ CARD MANAGEMENT PLATFORM SELECTED BY

ITALIAN WIRELESS CARRIER WIND

Oberthur Card Systems has successfully integrated its SIMphonIC(TM) Application Loader and Manager platform to WIND’s mobile network. SIMphonIC ALM is a complete remote management platform for SIM cards that enables WIND to manage the applications on the SIM card over-the-air as well as offer new services to its 7.9 million subscribers through its web portal.

— OBERTHUR CARD SYSTEMS PRESENTS THE FIRST 3G COMPOSER

The 3G Composer, the most recent addition to Oberthur’s world-leading “SIMphonIC(TM) Composer” family, is intended to help mobile carriers as well as content and service providers in designing, developing and simulating new applications and services for UMTS networks. The new tool enables Java(TM) programmers to develop applications and simulate applications for 3G SIM cards but also, and this is unique today, for a selection of Java handsets. New applications can now be designed taking advantage of the processing power of the handset and the security features of the SIM card.

— OBERTHUR CARD SYSTEMS AND MASQ SECURE M-COMMERCE

Oberthur Card Systems and Masq Inc. will showcase an extensible platform for mobile operators to rapidly implement secure mobile commerce solutions. Masq Inc. provides wireless network operators with the means to authenticate mobile device users and produce an electronic signature that enables a full range of secure, real-time mobile transactions such as prepaid airtime recharge, secure direct payment or protected remote access from a mobile device.

About Oberthur Card Systems

Oberthur Card Systems (listed on the Euronext Stock Exchange – Code Euroclear 12413) is a leading provider of card-based products, software and applications including SIM and multi-application smart card-based solutions, consulting, personalization and card services.

A global player and innovator in the smart card industry, championing EMV and open standards, Oberthur maintains a leading position in the payment cards market as the world’s number one supplier of Visa and MasterCard branded cards as well as in network security, m-commerce and Pay-TV fields.

With unrivalled expertise in Java(TM) and GSM technologies, Oberthur delivers the most advanced, open and interoperable SIM, WAP and 3G (IMT-2000/UMTS) solutions to mobile operators thereby transforming the nature of mobile communications.

With revenues of EUR 484.2 million in 2001, Oberthur Card Systems has an international reach with an industrial and commercial presence in 21 countries across the five continents.

SIMPHONIC 3G COMPOSER

At this year’s 3GSM World Congress in Cannes (France), Oberthur Card Systems unveiled for the first time the ‘SIMphonIC™ 3G Composer’, its latest software tool for developing and simulating applications and services on both 2G and 3G networks.

The 3G Composer, the most recent addition to Oberthur’s world-leading “SIMphonIC™ Composer” family, is intended to help mobile operators as well as content and service providers in modelling, designing, developing and simulating new applications and services for UMTS networks. The new tool enables Java™ programmers to develop applets not only for 3G SIM cards, but also for handsets.

To showcase its 3G Composer, Oberthur Card Systems will demonstrate three types of application development on both Java™ SIM cards and handsets: – Standard authentication with the user WIM application for mobile gambling (lottery); – Digital rights management, when downloading music onto a wireless terminal; – Payment via mobile phone (m-commerce), complying with the Europay-MasterCard-Visa (EMV) standard using debit / credit applications

Commonly used to secure access on mobile phones, SIM cards will play an even more critical role with the arrival of 3G networks. In a world becoming more open, SIM cards will be a key element for authentication and data integrity transmission, securing payments made via mobile devices (m-commerce), or digital rights management (DRM) when accessing multimedia content.

About Oberthur Card Systems

Oberthur Card Systems (listed on the Euronext Stock Exchange – Code Euroclear 12413) is a leading provider of card-based products, software and applications including SIM and multi-application smart card-based solutions, consulting, personalization and card services.

A global player and innovator in the smart card industry, championing EMV and open standards, Oberthur maintains a leading position in the payment cards market as the world’s number one supplier of Visa and MasterCard branded cards as well as in network security, m-commerce and Pay-TV fields.

With unrivalled expertise in JavaTM and GSM technologies, Oberthur delivers the most advanced, open and interoperable SIM, WAP and 3G (IMT-2000/UMTS) solutions to mobile operators thereby transforming the nature of mobile communications.

With revenues of EUR 484.2 million in 2001, Oberthur Card Systems has an international reach with an industrial and commercial presence in 21 countries across the five continents.

www.oberthurcs.com; www.oberthurusa.com

CDMA CARDS

Oberthur Card Systems, a
global leader and the innovator in the smart card industry has successfully
connected its SIMphonIC CDMA product to China Unicom’s first available
CDMA network. Oberthur is among the companies taking the lead in passing the
first series of tests using the R-UIM card.

SIMphonIC CDMA, with its application Toolkit functionality and varied
memory capacity, allows China’s mobile network operators to provide
personalized value-added services to their customers who can roam and
authenticate themselves on both GSM and CDMA networks. To ensure a high level
of compatibility, the test featured handsets from 19 manufacturers approved
for use on the CDMA network by the Chinese authorities. The tests prove the
compatibility of the SIMphonIC CDMA card both with the CDMA network and
with the approved CDMA handsets. Oberthur’s solution is used as a reference
for China Unicom’s framing standard and data test during the development and
deployment of its CDMA network.

Based on Qualcomm’s CDMA technologies, the SIMphonIC(TM) CDMA has been
developed following the 3GPP2(1) (3rd Generation Partnership Project 2)
specification for the design of the UIM (User Identity Module) of CDMA,
combined with the GSM standard from the ETSI (European Telecommunications
Standards Institute) thereby creating an international CDMA/GSM dual mode
roaming solution. Inserted into a GSM or CDMA handset with a smart card slot,
the SIMphonIC(TM) CDMA allows the portability of such information while
roaming from one environment to another, enabling users to gain access to
their data while travelling between technologies. Operators, in turn, will
benefit from a reduced cost of implementation and increased revenue through
international roaming.

The SIMphonIC(TM) CDMA is intended to allow access to the CDMA networks,
such as the current CdmaOne networks in China and Korea, and the imminent
CDMA2000 networks in Japan, Korea and the Americas. Furthermore, the
SIMphonIC(TM) CDMA also allows access to existing GSM networks in Europe,
China and the Americas. The SIMphonIC(TM) CDMA is the ideal module for
countries that do not currently use smart card technology and wish to
integrate the R-UIM (Removable User Identity Module) solution into their
CdmaOne networks.

Oberthur Card Systems has an R&D center in Beijing and a production site
in Shenzen in order to maintain and further develop its commitment to China’s
market, and in particular to support its relationships in the region with key
players such as China Unicom. Mr. Vincent Bernard, Chief Representative for
Oberthur Card Systems in China and his team reinforce this commitment by
stating their objective to deliver the most advanced technology available to
China.

About Oberthur Card Systems:

Oberthur Card Systems (Paris Stock Exchange – Code Euroclear 12413), a
global leader and the innovator in the smart card industry, is shaping the
future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet
technologies & Internet-based card management services coupled with a firm
commitment to open standards.

Championing EMV migration, Oberthur is the world’s number one supplier of
MasterCard and Visa cards, a leader in the banking, e-commerce, m-commerce and
pay-TV sectors, and in Java(TM) and GSM technologies.

Oberthur Card Systems has an international reach with an industrial and
commercial presence in 21 countries across the five continents. Oberthur Card
Systems had sales of 451.1 million Euros in 2000.

NEW SIM CARDS

Oberthur Card Systems is partnering
with France-based mobile operator Bouygues Telecom, to provide the most
advanced
SIM technology based on the latest advancement in 2nd Generation SIM cards,
Oberthur’s SIMphonIC’ cards integrating RSA architecture, currently the most
developed security technology available.

SIMphonIC’ RSA-enabled cards, that host 64K of EEPROM user memory to store the
RSA capabilities on the card, ensure a highly secure environment to conduct
wireless PKI and secure any transaction via mobile networks using digital
signatures. The 64K RSA-enabled SIMphonIC’ has provides both electronic
signature for wireless-transmitted data and highly secure authentication to
ensure non-repudiation for a user’s peace-of-mind.

‘Having achieved universal recognition by the industry as the security device
within the mobile phone, the SIM card is now the ideal tool to launch
PKI-based
secure services,’ commented Stephane Mousse, head of marketing for mobile
communications at Oberthur Card Systems. ‘We have established a solid
reputation as security innovators that enables us to build upon our
relationships with key partners such as Bouygues Telecom.’

Demand for data exchanges via wireless devices continues to grow, most notably
in the work environment. Business users want anytime anywhere access to
company networks (intranet, extranet) and true e-mail capability. For
consumers, the emergence of electronic signatures finally addresses the issue
of repudiation that had been a hindrance to mobile transactions. Additionally,
a need to consolidate the functionality of a PDA (personal digital assistant)
with a mobile phone is causing innovative operators such as France’s Bouygues
Telecom to address all these needs and develop secure services.

A long-term partner of Bouygues Telecom, Oberthur Card Systems, known as the
smart card innovator, has worked closely with the operator on the launch of
this electronic signature-secured mobile pilot.

‘Today, we witness a need for higher security in mobile telephony, for
authentication and non-repudiation, said Christophe Nivelet, m-commerce
security manager of Bouygues Telecom. In response to the individual needs of
both our customers and our partners on our 6th Sense portal, we have
engaged in
this initial phase with a view to potentially roll-out in 2002 or 2003.
Working
with Oberthur Card Systems whose key strength lies in their ability to deliver
the necessary technology ahead of the market, enables us to prove the
viability
of Bouygues Telecom’s projects.’

About Oberthur Card SystemsOberthur Card Systems (Paris Stock Exchange – Code
SICOVAM 12413), a global leader and the innovator in the smart card industry,
is shaping the future by offering the ultimate in SIM, WAP, 3G
(IMT-2000/UMTS),
e-wallet technologies & Internet-based card management services coupled with a
firm commitment to open standards.

Championing EMV migration, Oberthur is the world’s number one supplier of
MasterCard and Visa cards, a leader in the banking, e-commerce, m-commerce and
pay-TV sectors, and in JavaTM and GSM technologies.

Oberthur Card Systems has an international reach with an industrial and
commercial presence in 21 countries across the five continents. Oberthur Card
Systems had sales of 451.1 million Euros in 2000.

About Bouygues Telecom :

With 6,500 employees, more than 6 million customers and a network covering
more
than 98% of the national population, 5 years on from its commercial launch,
Bouyges Telecom confirms its presence as a dynamic and innovative player in
the
French Mobile Telephony market. The company ranks as one of the top 10
operators worldwide: with an international reach extending to more than 120
countries.

Oberthur CRM Acquisition

Oberthur Card Systems announced this morning it has acquired the other half of Rapsodia Software from its joint venture partner Prosodie. Rapsodia Software, was formed in May 1999. It will now become a fully integrated business division of Oberthur Card Systems under the management of Olivier Leroux its current managing director. Rapsodia Software operates within the wireless industry to provide software platforms for mobile value-added services. Headquartered near Paris in Boulogne Billancourt, Rapsodia also has an office in Hong Kong, employees approximately 50 people and generated revenues of $3.2 million in 2000. Oberthur is paying $3.3 million for the Rapsodia acquisition.

TELEPATHY QUICK-START

Baltimore Technologies launched a complete Wireless Trust Solution designed to
enable full implementation of mobile e-business and e-commerce networks. Based
on Baltimore’s award-winning Telepathy wireless e-security framework, the
solution combines the latest standards-based Wireless Public Key Infrastructure
(WPKI), handsets and smartcard technologies in a uniquely integrated package,
thus reducing the deployment complexity and timeframe for mobile operators,
financial institutions and enterprise customers. The solution is immediately
available for trial deployment under the name Telepathy QuickStart.
“We are very pleased to incorporate our GPRS/Bluetooth mobile phones, the R520
and T39, to be part of Baltimore Telepathy QuickStart, which will accelerate
the rollout of standards-based WPKI. This will help to ensure that Ericsson’s
customers have reliable and secure mobile Internet services,” said Robert Vass,
senior manager, applications product management, Ericsson Mobile Communications
AB.

Mobile operators, financial services companies and enterprises realize that
Security and Trust are critical enablers for stimulating high value mobile
services. WPKI leverages existing wired PKI standards without reinventing the
wheel thus enabling existing PKI applications to become mobilized without
further investment in proprietary solutions.
Today’s announcement further extends Baltimore’s leadership in WPKI and follows
a recent major contract with the Finnish operator Radiolinja, who has licensed
Baltimore Telepathy to deploy the world’s first trust infrastructure for
wireless Internet services using WPKI. Radiolinja has developed a secure mobile
payment solution for Luottokunta (Visa Finland) allowing merchants to accept
Visa and Eurocard/MasterCard transactions. Radiolinja’s new secure wireless
framework also enables Finland’s leading bank, OKO Bank, to provide secure
mobile financial services, while Finland’s Population Register Centre (PRC), a
Government body issuing electronic ID to citizens, will utilize Radiolinja’s
Wireless Public Key Infrastructure (WPKI) for mobile electronic identity.
“Wireless PKI introduces new fascinating services to customers and opens up new
revenue streams for operators. We are pleased to participate in the Telepathy
QuickStart initiative with our new WAP 1.2.1 compliant S45 and ME45 phones.
Trials showing the benefits of standards-based wireless PKI services are an
important step towards our vision of the mobile phone becoming a Personal
Trusted Device in the hand of each customer,” said Anno Mertens, m-commerce
product manager at the mobile phones department of Siemens Information and
Communication Mobile Group.

The solution is built on Baltimore UniCERT, one of the world’s leading Public
Key Infrastructure (PKI) systems and Baltimore Telepathy, the award-winning
wireless e-security framework, combined with a range of the most advanced
mobile commerce technologies including phones from Ericsson and Siemens and
smartcards (S/WIMs) from Gemplus, Giesecke & Devrient, Oberthur Card Systems,
and SchlumbergerSema. The QuickStart offering enables customers to rapidly
deploy the solution for a period of 120 days for up to 100 users, with easy
migration to a full commercial rollout upon completion. Customers can also
choose from two deployment options hosting at a Baltimore Centre of Excellence
or alternatively hosting the solution in-house. Through deploying the Baltimore
Wireless Trust Solution, customers are in a position to use enabling technology
to drive their business vision forward, capturing market share and increasing
average revenue per user (ARPU) among other key objectives.

According to a recent Datamonitor Report (published May 2001), the global WPKI
market is forecasted to account for over 40% of the total $3.6Bn PKI market by
2006. Telepathy QuickStart provides customers with invaluable opportunities to
evaluate the trusted frameworks, which will be used in commercial deployments
and designed to meet the most demanding security requirements including
registration, authentication, and non-repudiation. It is also possible for the
customer during the evaluation period, to start the implementation of business
strategies for new compelling m-commerce services.

Limdara Chea, WIM product manager at SchlumbergerSema, Mobile Communications
explains, “We believe our customers will value this innovative technological
development with Baltimore. Our solution should offer easy Wireless Public Key
Infrastructure deployment to mobile operators, using WAP 1.2.1 compliant SWIM
card Simera e-motion(TM). It leverages the SchlumbergerSema card
personalization expertise with Baltimore Telepathy QuickStart to deliver an
integrated secure batch certificate request process and SWIM card issuance
system.”

“WPKI technology enables non-repudiation and mutual authentication, which is
essential for secure mobile commerce. To be part of an initiative like
Telepathy QuickStart underlines G&D’s goal to provide potential partners and
customers with complete standards-based solutions that enable secure
transactions on various Wireless Internet platforms in a short time-to-market.
Following its success in GSM, from basic authentication devices to advanced
SAT-enabled platforms, smart cards are now empowering mobile commerce solutions
in the WAP(TM) environment,” said Dr. Klaus Vedder, executive vice president
and head of telecommunications at G&D. “Our STARWIM(R) product combined with
Baltimore’s WPKI solution will make secure WAP(TM) transactions over GSM
networks a reality.”

According to Patrick Imbert, director, mobile commerce at Gemplus, “Wireless
PKI is the only technology that enables operators to forge bonds of Trust
between their customers and content providers in a very open environment.
Gemplus strongly believes that the Telepathy QuickStart program will help
mobile operators to easily trial and quickly measure the huge opportunities
that WPKI offers. Thanks to its GemXplore Trust SIM/WIM product range, Gemplus
provides fully interoperable client platforms that are compliant with the
latest standards.”

A feature of Telepathy QuickStart will be the implementation of Baltimore’s
X-BULK extension of the XKMS (XML Key Management Specification), which
effectively eliminates any interoperability issues for the bulk or batch
issuance of digital certificates in wireless PKI.
“We believe that today’s announcement will not only accelerate the rollout of
WPKI but also demonstrates that WAP 1.2.1 interoperability tests between
Baltimore’s software, WIM-enabled mobile phones and WIMs are our prime concern.
With SIMphonIC WIM and Telepathy QuickStart, operators are provided with a
state of the art digital signature creation device and Wireless PKI software.
In addition, the future combination of Baltimore X-BULK and Oberthur Card
System’s current personalization system will provide an innovative PKI-enabled
SIM card issuance system,” stated Sylvestre Denis, WAP project manager at
Oberthur Card Systems, Mobile Communications Business Unit.
“Telepathy QuickStart enables customers to benefit quickly and easily from
Baltimore’s unrivalled experience of WPKI commercial deployments and to
leverage advanced mobile commerce technologies from world class partners,” said
Owen Chubb, Telepathy marketing manager at Baltimore Technologies. “It will
also employ Baltimore’s new X-BULK proposal demonstrating our commitment to
fostering new global standards. This proves that Baltimore is the only company
that can deliver next generation e-security services to meet the most demanding
needs of our customers for authentication, authorization and content security,”
he added.

About Baltimore Telepathy

Baltimore Telepathy

(http//www.baltimore.com/telepathy) is the
most comprehensive open standards-based wireless security solution available,
designed to meet the most demanding security needs of Wireless Network
Operators, Content Providers (including Financial Institutions and Enterprises)
and Technology Vendors. Featuring innovative technology, Baltimore Telepathy
ensures secure and trusted delivery of highly confidential services over the
wireless Internet. Baltimore Telepathy uses Baltimore UniCERT, the world’s
leading PKI as the foundation to extend PKI systems to secure high value
transactions, confidential communications and Intranet access.

About Baltimore Technologies

Baltimore Technologies develops and markets security products and services to
enable companies to develop trusted, secure systems for e-business, the
Internet and mobile commerce. Its products include a wide range of Public Key
Infrastructure (PKI) products and services, access control and authorization
solutions, content security (MIMEsweeper) products, wireless e-security
solutions, cryptographic tool-kits, security applications and hardware
cryptographic devices. Baltimore’s global professional services organization
offers a wide variety of consulting, training and deployment support to its
customers worldwide. Baltimore Technologies markets and sells its solutions
worldwide directly and through the TrustedWorld partner program. Baltimore
TrustedWorld includes many of the world’s leading technology companies and a
wide variety of global, regional and local business alliance partners.