Gemplus and K-Laboratory Form Strategic Alliance to Secure Wireless JAVA™

December 3, 2001

Alliance aims to secure the wireless Internet ensuring Mobile Operators and Content Providers avoid the pitfalls of the dotcom bust

Gemplus S.A. (Euronext: Sicovam 5768 and Nasdaq: "GEMP"), the world's number one provider of solutions empowered by smart cards, has today signed a Memorandum of Understanding with K-Laboratory Co., Inc., (Headquarter: Tokyo, Japan), the leader in mobile Java 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 world-wide with 30 million Java handsets already sold this year, rising to 400 million in 2003 and 1100 million in 2006.

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.

The alliance between Gemplus and K-Laboratory will look at combining their expertise in Java-based Smart Cards, Card and Handset applications to build the right infrastructure for a trusted wireless environment. The scope of the agreement includes:

1) Building an open, secure architecture for distributing Java applications between Java enabled handsets, smart card and server
2) Developing Java-based mobile services that take the processing power of the Java phone allied with the benefits of the Smart Card
3) Studying ways in which digital rights such as copyright and licence agreements are managed

"Java offers many advantages for content delivery but both users and suppliers will only place their confidence in such content when there is sufficient security. Our alliance with K-Laboratory aims to create an infrastructure where Java-based mobile services will be downloaded, executed and managed by both the handset and the card thus creating a bond of trust. It is essential for Gemplus to be working with a strong partner in Japan as this market is currently the most advanced mobile data market and strongly influences world-wide data services strategies." Commented Frédéric Vasnier, Vice President Marketing, Card & Tools Product Lines, Telecom BU, Gemplus.

"The demand for bandwidth is driven by demand for solutions and in this case, secure smart card solutions. With the recent launch of 3G technology, smart card solutions are successfully being adopted in the Japanese mobile marketplace. This partnership brings together two leaders in the industry and we hope to introduce more secure, advanced Java mobile technologies to Japan and the rest of the world, in line with our own strategy to provide a global solution with technology partners that are also driving the market." Said Mr Tetsuya Sanada, President & CEO, K-Laboratory.


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