With Axalto's SIM on the GO, Bring Your Music and Video to Your New Handset

Market Wire, February, 2006

With SIM on the GO (TM) breakthrough features, subscribers can instantly transfer their purchased rights to a new device, and enjoy a consistent experience regardless of the handset

3GSM World Congress, Barcelona, February 14, 2006 - Axalto (Euronext NL0000400653 AXL), the world's leader in microprocessor cards, today launched SIM on the GO, a new SIM-based solution that allows portability of protected multimedia content. With SIM on the GO, content rights are managed by the SIM card so when subscribers upgrade to a new handset, they can instantly use previously purchased services and enjoy a consistent experience regardless of the device.

Today, digital rights are tied to the mobile phone, so when subscribers change devices they can no longer use the services they have paid for. This frequently leads to customer dissatisfaction, and operators incurring expensive support calls since content portability attempts involve a complex process.

With SIM on the GO using the SIM as the digital rights manager, users just need to pop their SIM card from one phone into another to transfer their rights to a new device. Another benefit of SIM on the GO is the ability for the operator to easily back-up the user's rights over-the-air. Therefore, subscribers can retrieve access to their data even when the handset is lost or stolen: the operator issues them with a new SIM card containing the same rights and they can restore their content in a simple manner.

"As deployment of 3G services is gathering momentum worldwide, more and more valuable content becomes available to subscribers, " said Cédric Collomb, director of mobile communications at Axalto. "SIM on the GO enables them to seamlessly enjoy it as they routinely change handsets."

This technology breakthrough from Axalto transforms the SIM into a key enabler for music and video portability. Operators deploying SIM on the GO will rapidly boost purchase of digital content - as users feel certain of preserving their purchased items - and will significantly strengthen customer loyalty by providing such a strongly differentiating capability and continuity of service.

Co-developed with Beep Science, a leading provider of mobile Digital Rights Management software, this solution is fully compliant with the Open Mobile Alliance standard - OMA DRM 2.0 - to enable interoperability between devices.

About Axalto

Axalto (Euronext: NL0000400653 AXL) is the world's leading provider of microprocessor cards (Gartner 2005, Frost & Sullivan 2004) -- the key to digital networks -- and a major supplier of point-of-sale terminals. Its 4500 employees come from over 65 nationalities and serve customers in more than 100 countries, with worldwide sales exceeding 3 billion smart cards to date. The company has 25 years' experience in smart card innovation and leads its industry in security technology and open systems.

Axalto continuously creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users.

www.axalto.com

Contacts

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|         Axalto          |
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|Emmanuelle Saby          |
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|T.:  33 (0)1 46 00 71 04 |
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|M.:  33 (0)6 09 10 76 10 |
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|esaby@axalto.com         |
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|Aline Borne              |
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|T.:  33 (0)1 46 00 73 97 |
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|M.:  33 (0)6 16 29 87 04 |
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|aborne@axalto.com        |
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|Fleishman - Hillard      |
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|Arnaud Malherbe          |
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|T.:  33 (0)1 47 42 92 76 |
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|M.:  33 (0)6 33 30 76 15 |
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|malherba@fleishmaneurope.|
|com                      |
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