Gemplus and IBM Join Forces to Deliver Worldwide Smart Card Solutions

Cooperation to Boost Growth of Global Market

Gemplus (Nasdaq:GEMP) and IBM today announced a services and technology agreement to collaborate on providing smart card solutions to customers of both companies worldwide.

As part of the agreement, Gemplus will combine their strength in card personalization, issuance and logistics, with IBM's systems integration capabilities and Chip Management System solution to offer robust, leading edge, smart card solutions across every industry sector.

"The IBM and Gemplus agreement will provide customers with integrated, end to end solutions that support their business needs. This cooperation significantly enhances our capability to deliver smart card solutions by drawing upon our respective capabilities. Customers and business partners will have increased access to a combination of multifunction smart cards, their applications and lifecycle management," said John Kirby, vice president, Global, Mobile e-business Services.

"Using the strengths of both our companies, IBM and Gemplus will capitalize upon this agreement to deliver best of breed solutions to fit our customers needs," said Gilles Michel, Executive VP Financial Services Gemplus. "Smart Card lifecycle management and integration services are crucial for a successful smart card implementation. This agreement will allow for one-stop shopping and an integrated approach."

A major part of the companies' agreement will focus on the deployment of a Smart Card Life Cycle Management Application. Through using IBM's Chip Management System solution (CMS-e), subscribers will be able to update authorized data elements and add or delete entire applications directly onto the smart card. It will also allow issuers to control, monitor, update, or delete card applications such as the addition of new Public and Private Keys and payment or loyalty applications. Coupling the CMS-e system with the manufacturing, personalization, issuance, logistics and customization services of Gemplus will provide smart card customers a complete managed solution.

The IBM/Gemplus cooperation represents a significant step towards fulfilling the benefits and value of multiple applications being stored on a single card.


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