Gemplus and K-Laboratory Form Strategic Alliance to Secure Wireless Java

Business Wire, Nov 29, 2001

Business Editors/High-Tech Writers

LONDON--(BUSINESS WIRE)--Nov. 29, 2001

Gemplus S.A. (Nasdaq:GEMP) and (Euronext:Sicovam 5768)

             Alliance Aims to Secure the Wireless Internet
            Ensuring Mobile Operators and Content Providers
                 Avoid the Pitfalls of the Dotcom Bust

    --  Strategic alliance to pioneer new solutions for secure
        deployment of Java applets in Java enabled handsets and
        wireless smart cards

    --  Collaboration in Java will provide network operators and
        content providers with secure data delivery infrastructure
        leading to successful business and revenue sharing models

    --  Wireless subscribers set to benefit from trusted mobile
        services and payment environments

Gemplus S.A. (Euronext: Sicovam 5768 and NASDAQ:GEMP), the world's number one provider of solutions empowered by smart cards, has signed a Memorandum of Understanding with K-Laboratory Co., Inc., (Headquarter: Tokyo, Japan), the leader in mobile Java(TM) development and mobile platform technologies in Japan, to jointly study and develop a secure architecture for the provisioning of applications in Java enabled handsets. So far e-commerce on the Wired Internet has failed to ignite due to the lack of two things: security and reliable revenue models. With the arrival of 2.5 and 3G services in Japan the Wireless Internet infrastructure is now in place. In Japan, Java is the language of choice for mobile services with millions of subscribers already taking advantage of the creativity and flexibility of Java-based applications. This phenomenon is set to recreate itself worldwide with 30 million Java handsets already sold this year, rising to 400 million in 2003 and 1100 million in 2006.(1)

In order for mobile business to take off it needs to come with the right level of security to create an environment of confidence between suppliers and customers. In such an environment end-users and handset manufacturers can rest assured that they do not download malicious applications onto the phone while operators and content providers can identify and bill users for the services they use and manage copyright issues.

You can find the complete text of this press release at: http://www.gemplus.com/about/pressroom/press/wireless/2001/klab1.htm

It should be noted that certain of the statements contained in this release may constitute forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors including without limitation customer demand for our products, supply of key components, developments in the market and advances in technology that may cause our or our industry's actual results, levels of activity, or performance to materially differ from those expressed or implied by such forward-looking statements. For a more detailed description of these factors, please see Gemplus' most recent filings with the securities and exchange commission. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this release. We are under no duty to update or revise any of the forward-looking statements after this date or to confirm such statements to actual results or to reflect the occurrence of anticipated results.

Note to Editors: Gemplus, the Gemplus logo, GemXpresso, and Your Passport to the Digital Age 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.

K Laboratory is a trademark of K Laboratory Co., Ltd. In Japan.

Java is a registered trademark or registered trademark of Sun Microsystems, Inc. in the U.S.A. and other countries.

(1) ARC Group