Philips Gains Industry's First Visa Level 3 Security Rating for Java Card Global Platform Dual-Interface Smartcard IC

Business Wire, April 22, 2002

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 22, 2002

MIFARE PROX Extends Industry Advantage for

ISO 14443 Type A Contactless Standard

Royal Philips Electronics (NYSE:PHG)(AEX:PHI) has announced that it is the first company to achieve Visa International's Level 3 technology approval for a Java Card Global Platform Smart Card controller IC that offers both a contact interface and a contactless interface, whereas the contactless interface fully supports the Java Card Global Platform technology.

The MIFARE(R) PROX is proven to be the most secure dual interface Smart Card solution on the market making it ideal for financial, government or access applications where high security is mandated. Both interfaces conform to open industry standards, the ISO 7816 contact interface and the most widely accepted contactless standard, ISO 14443 type A. The Visa Level 3 technology approval means that the dual interface card is as secure as a single interface card, while also allowing for further applications to be added.

"With the ever-rising need for security, and the proliferation of cards, keys and other devices, we believe that there will be a greater call for multi-purpose, secure cards," commented Denny Jensen, senior vice president, Visa International. "This Philips MIFARE PROX enables our member banks to enhance their services to customers by adding further applications -- such as access to transport systems -- while still maintaining the highest levels of security required for payment cards. In addition, this card is offered as part of the 'Visa Low Cost Smart Cards' Program and provides our members with an extremely cost effective solution for the dual interface market."

The MIFARE PROX -- together with a highly efficient Java Card Global Platform implementation based on IBM's JCOP solution -- has been released for card issuers seeking Global Platform cards that support dynamic download of Java(TM) applications. This means that additional applications, such as payment for public transport, access to a public library or a loyalty scheme, can be added or removed even after the card has been issued by the bank.

The MIFARE PROX dual-interface smart card technology enables service providers to use a single device for transport, banking, purchases, administration and e-commerce applications. Based on industry standard interfaces, this advanced open technology platform ensures high processing performance for security encryption combined with the ability to operate in today's and future infrastructures.

More than 10 million MIFARE Dual Interface cards are already in operation around the world. Typical examples include the cities of Dalian, Pusan and Seoul where they provide payment for public transport combined with e-purse systems and a credit card. Plans are under way to extend this to provide secure access to banking, health care, social services and to prove customer identity.

About Philips

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 189,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol:PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.semiconductors.philips.com.

Note to Editors: MIFARE is a registered trademark of Philips. Java is a registered trademark of Sun Microsystems