Gemalto Opens New Personalization Service Center in São Paulo, Brazil

Gemalto Opens New Personalization Service Center in São Paulo, Brazil

New card personalization center has the capacity to meet growing demand in Finance and Public sectors

São Paulo, Aug 30, 2007–Gemalto (Euronext NL 0000400653 GTO), the world leader in digital security, opens a new Personalization Service Center in Brazil in order to better address the demand of its customers in the Finance and Public sectors of the Brazilian and South Cone markets (Paraguay, Uruguay, and Argentina). The new Barueri center, in the State of São Paulo, will deliver advanced personalization and distribution services for Gemalto’s secure personal devices. The new facility will enhance the capabilities of the company’s existing Curitiba’s production center, in Paraná, which has been producing chip cards since 1999 and is compliant with the highest levels of security required by Visa and MasterCard.

“According to figures published by ABECS in 2007 (Brazilian Association of Credit Cards and Services Companies), there are approximately 280 million banking debit and credit cards currently in circulation, plus 116 million retail store credit cards” comments Luis Cohen, commercial director for the Gemalto FInance sector in Latin America. “With the migration to more capable intelligent secure personal devices, we clearly have a huge potential here in Brazil and in the whole region”.

Gemalto chose Brazil for the installation of this new Personalization Service Center because of the strong demand created by the local market. Out of the 280 million banking cards in circulation in Brazil, more than 20 million have already been upgraded to contain a secure microprocessor chip. More cards are also issued in this Financial Services segment every year: debit and credit cards increased in volume by an average annual growth of respectively 21 percent and 15 percent according to the ABECS 2007 survey.

“In order to continue to serve the need for production and development of high-end technology in Brazil, Gemalto has installed its new center with an initial capacity to personalize smart cards in line with current demand” says José Luiz Pellegrini, manufacturing director of Gemalto. “However the current capacity may be increased very quickly if there is an increase in demand”.

Gemalto expects the demand for microprocessor cards in the Public Sector to increase in the next couple of years, as the substitution of paper documents to more secure solutions progresses. This trend is mainly driven by losses incurred by false identification. In the UK for example, according to a study from the Home Office Identity Fraud Steering Committee, the losses to the British economy related to ID fraud amount to around £1.7 billion (R$ 7.6 billion) per year. In Brazil, it is estimated that falsification of ID cards is responsible for 72% of all finance and commercial institutions fraud schemes (source: Polícia Civil do Distrito Federal).

With the installation of this new service center, Gemalto reinforces its commitment to its customers and partners in the Brazilian and South Cone market.

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is a leader in digital security with pro forma 2006 annual revenues of €1.7 billion, operations in about 100 countries and over 10,000 employees including 1,500 R&D engineers. In a world where the digital revolution is increasingly transforming our lives, Gemalto’s solutions are designed to make personal digital interactions more convenient, secure and enjoyable.

Gemalto provides end-to-end digital security solutions, from the development of software applications through design and production of secure personal devices such as smart cards, SIMs, e-passports, and tokens to the management of deployment services for its customers. More than a billion people worldwide use the company’s products and services for telecommunications, financial services, e-government, identity management, multimedia content, digital rights management, IT security, mass transit and many other applications.

As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years. Gemalto was formed in June 2006 by the combination of Axalto and Gemplus.

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