Gemplus Launches Subscriber Identity Module -SIM- Card for New Java Powered Phone Line from Nextel; SIM Card Technology Expands Beyond GSM

Business Wire, April 2, 2001

Business Editors

REDWOOD SHORES, CA--(BUSINESS WIRE)--April 2, 2001

Gemplus(R) (NASDAQ:GEMP), the leading smart card solutions provider, has announced today - in concert with Nextel(R) Communications, Inc.'s (NASDAQ: NXTL) announcement of the i85 phone by Motorola(R)- that it has been chosen by Nextel as the provider of SIM cards for the Motorola wireless phone. These SIM cards are the first in the world to be manufactured to a specification other than the Global System for Mobile Communications (GSM). That means North American users of non-GSM phones can enjoy the same advanced features and high security that wireless customers in Europe and Asia have come to expect.

Gemplus is manufacturing the SIM cards for Nextel to iDEN(R) standard specifications. This Motorola technology supports voice, data, short messages and other features in one phone. It operates in the 800 MHz and 1.5 GHz bands and is based on TDMA (Time Division Multiple Access).

A key benefit of the Gemplus SIM card for Nextel and its customers is enhanced security, with a strongly encrypted "handshake" between the user and the network that provides a highly dependable means of user identification. SIM cards create the freedom for users to roam internationally without losing their personal set-ups and to change wireless terminals as they wish, without calling customer care. SIM cards also open the door to application security for mobile commerce and wireless Intranet.

The integration with Motorola was the first of its kind: successful integration of a SIM card in a mass-market non-GSM phone.

"This is a groundbreaking development for North American wireless networks," said Jean-Louis Carrara, Director of Telecommunications for Gemplus in North America. "The use of SIM cards in the Nextel network is a tremendous endorsement of smart card technologies, demonstrating the intrinsic value of SIM cards in all networks, for all wireless technologies."

Gemplus has been manufacturing the cards for wireless phones since 1992 and has issued 41% of SIM Card units sold in 1999 (source Eurosmart/Gemplus 2000), the largest of any single manufacturer. Gemplus has been providing more than 250 wireless operators with SIM cards, software, and services since 1988. The company's other innovations in the mobile phone market include products and technologies such as the development environment GemXplore(R) CASE, the remote SIM management platform GemXplore Suite, and Java Card(TM) SIMs.

"As the world's largest producer of SIM cards for cellular phones, Gemplus has both the technical and manufacturing expertise necessary to ensure that high quality SIMs will be readily available to meet the demand expected for the i85 phone," said Greg Santoro, Vice President Internet and Wireless Services at Nextel. "The security and dependability their smart cards provide is unrivalled in the industry."

About Gemplus

GEMPLUS: the world's leading smart card solutions provider

Since its creation in 1988, Gemplus International S.A.(Euronext: Sicovam 5768 and NASDAQ:GEMP) has driven the global marketing and deployment of smart card-based applications for telecommunications, financial services and e-business security.

Gemplus is instrumental throughout the value chain - chip design, card management systems, software development, and consulting - delivering integrated custom-made solutions for the security, personalization and privacy management needs of clients and partners worldwide.

Gemplus technology has played a defining role in the development of wireless telephony since the introduction of SIM cards into the GSM standard in 1990. For more than a decade, Gemplus has pioneered applications that enable network operators around the world to answer the changing needs of their customers. Gemplus was first to market with a 3G card and supplies a product range compliant with new and emerging transmission standards - 2.5G, 3G.

In 2000, revenue was 1.205 billion Euros, up 57% from the previous year's 767 million Euros. Net income was 99 million Euros. Gemplus employs more than 7800 people in 37 countries worldwide. Since December 11, 2000, Gemplus shares have been trading on Euronext Paris S.A. First Market and on Nasdaq Stock Market(TM) at GEMP in the form of ADSs.

Gemplus: www.gemplus.com

(c) 2001 Gemplus S.A. All rights reserved. Gemplus and GemXplore are registered trademarks and service marks of Gemplus S.A. Java is a registered trademark and service mark of Sun Microsystems, Inc. Java Card is a trademark and service mark of Sun Microsystems, Inc. Motorola is a registered trademark and service mark of Motorola, Inc. All other trademarks and service marks are the property of their respective owners.

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