Gemplus and Surgutneftegazbank First to Deliver the New Generation of MasterCard Cards in Russia

Gemplus International S.A. (Euronext: LU0121706294 - GEM ; NASDAQ: GEMP), the world's leading provider of smart card solutions, today announces that the Russian bank, Surgutneftegazbank (SNGB), has chosen Gemplus to supply its new generation of off-line smart banking cards. These cards are compliant with the latest MasterCard specifications for EMV[1] (M/Chip 4.0) and utilise the DDA/CDA authentication[2] method. This deployment, the country's first adoption of such a smart card, will enable SNGB to deliver a safer and more secure payment solution to its customers.

The new solution was delivered to SNGB in association with Gemplus' local long-term partner Cardhall Group of Companies: Gamma-Card delivered Gemplus' cards and Pronit developed and implemented the software personalization solution. The first cards have already been issued by SNGB.

In Russia, off-line mode transactions, when bank terminals are not connected to bank systems in real-time, are very well developed. These necessitate stringent security requirements designed to prevent 'skimming' (the copying of card data onto a counterfeit card), particularly at ATMs or point-of-sale terminals. Today, many international payment schemes are based on on-line authorisation. The DDA/CDA smart card authentication system is the most advanced off-line security technology available, making such smart payment cards very difficult to copy. Gemplus' GemShare M/Chip 4.0 DDA/CDA has emerged as a particularly effective means to combat card fraud according to MasterCard standards.

"SNGB selected Gemplus to supply these MasterCard smart cards on the basis of its experience in the financial services sector. Gemplus can provide the technology to enable the high security standards our customers expect for rapid, secure card payments," said Zaourbek Besolov, Chief of the Plastic Cards Department at Surgutneftegazbank.

"This EMV compliant smart card provides significantly enhanced protection for banking cards against theft or fraud and the provision of Russia's first DDA/CDA solution reflects the reach of Gemplus' financial and banking expertise in emerging markets," commented Philippe Combes, Executive Vice President Operations and Financial Services, Gemplus. "This is a great message for banks to send out to their customers - that users can be safe in the knowledge that their cards are better protected from theft or fraud."

"The MasterCard DDA smart card, developed in partnership with Gemplus, fulfills the requirements of Russian banks for state-of-the-art security features. The cooperation between MasterCard and SNGB demonstrates the ongoing momentum of EMV migration in Russian banks," added Andrey Korolev, Vice-President and General Director of the MasterCard Europe office in Russia. "Through chip technology, both cardholders and merchants can enjoy the benefits of a more flexible, better protected payment system."

"The use of DDA/CDA cards offers the highest security level available with off-line payments. This is very important for the Russian market, where a lot of local payment systems work in off-line mode. The new technology enables customers to use well-known pre-authorised debit cards internationally. The cards from Gemplus, in combination with our personalization software, are a solid foundation for progressive EMV migration in a modern retail banking market," concluded Yury Tovb, General Director of Cardhall Group of Companies.

About Gemplus

Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP) is the world's leading player in the smart card industry in both revenue and total shipments (source: Gartner-Dataquest (2005), Frost & Sullivan, Datamonitor). It has sold over 5 billion smart cards.

With security at its core, and 2400 patents and patent applications produced by its innovative R&D team, Gemplus delivers a wide range of portable, personalized solutions in areas including Identity, Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV, e-government, and access control.