Gemplus and Euronet Worldwide Announce Agreement To Offer Wireless Payment Solutions to Mobile Operators

Gemplus (Nasdaq:GEMP), the world's number one provider of smart card-based solutions, and Euronet Worldwide (Nasdaq:EEFT), a leading provider of secure electronic financial transaction solutions, today announced the signature of a strategic alliance whereby Gemplus will market and deliver Euronet Worldwide's expanding suite of wireless payment solutions to GSM mobile operators around the world.

These SMS, SIM Toolkit and WAP-based payment and mobile banking solutions are offered as a completely outsourced, wireless ASP solution to all mobile operators. Gemplus will leverage its 100+ dedicated mobile operator sales force and impressive customer base to promote Euronet's products and services. Gemplus currently provides products and services to over 80% of all GSM operators. Euronet will operate the ASP data centers and manage every aspect of the integration between financial institutions, card organizations, wireless devices, and mobile operators.

The services offered will enable prepaid mobile phone subscribers to purchase and recharge additional prepaid airtime over their GSM phone, at a point-of-sale terminal, over the Internet, or at an ATM.

Since prepaid phone services are the fastest-growing segment of the mobile phone market, Euronet's prepaid electronic ReCharge products will have a significant impact on mobile operators' P&L. Indeed, carriers will be able to eliminate paper-based logistics associated with scratch cards (production, delivery, inventory management), reduce significantly their distribution costs, enhance user experience (one-step recharge -- any time, any place), and control churn.

These products are immediately available and mobile operators interested in them can be operational within a typical timeframe of 60 days.

The two companies are committed to continuously cooperating and co-developing innovative solutions and services providing mobile operators an expanding suite of next-generation mobile commerce products, including solutions in the areas of bill payment and bill presentment, event messaging and wireless e-purse solutions.

"Having Euronet Worldwide as our electronic financial transactions partner constitutes a perfect match of our STK technology and Euronet's secure financial transaction technology," said Philippe Lutman, Gemplus' Director Marketing Wireless. "By combining forces, these market-ready turnkey solutions will allow mobile operators to quickly bring to market innovative mobile solutions. Consumers are continually seeking ways to access faster, easier ways to perform financial transactions and these combined technologies will quickly address this need."

"This relationship marks a major milestone for our Euronet Wireless product line," said Michael Brown, Euronet Worldwide Chairman and CEO. "The dynamic combination of our secure payment solutions and Gemplus' STK technology and penetration into the mobile operator space and will make this turn-key ASP offering a winning choice for all mobile carriers. These exciting and innovative products are on the cutting edge of secure mobile payment technology and both companies are committed to delivering solutions that simplify consumers' lives."

Brown continued: "This agreement with Gemplus adds another integral partner in our strategy of expanding sale channels and distribution of our products by collaborating with dynamic companies around the world. Euronet's wireless partners -- including Aether Systems, Inc. in the United States -- will help us reach our goal of being a dominant provider of secure wireless payment transaction solutions."


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