Amsterdam, Netherlands and Arlington, VA, November 27, 2006–Gemalto (Euronext NL 0000400653 GTO), a world leader in digital security, today announces that the highest ranking agency within the U.S. Executive Branch of Government has chosen Gemalto to provide card management services, including two-factor authentication technology, in compliance with the Homeland Security Presidential Directive 12 (HSPD-12).

“As a single provider of FIPS 201 compliant digital security solutions–devices, applets, middleware and card management services–Gemalto is committed to delivering a platform for secure access and security solutions to the federal government,” said Ernie Berger, president of Gemalto North America. “Our solution underwent rigorous and thorough design, evaluation and testing and we are pleased that it was selected within such an influential agency in the U.S. Executive Branch.”

Gemalto has long been a major provider of strong authentication devices to the U.S. government. More than 12 million microprocessor-based smart cards are in use today by several agencies, including the Department of Defense, which has deployed 11 million Common Access Cards (CAC) supplied by Gemalto.

Under this contract, the comprehensive solution includes deployment and use of personalized smart ID credentials for secure access to information systems and federal buildings. In addition, Gemalto provides technical advice and integration and delivery services. Intercede, a worldwide technology leader in the field of smart card management solutions, is providing the card management system within Gemalto’s SafesITe™ Government solution.

“This contract is of pivotal importance within the Federal identity market place. We are delighted to team with Gemalto to provide a fully operational deployment,” commented Richard Parris, chairman and chief executive of Intercede. “Along with our partner, Intercede is committed to making HSPD-12 a success across all U.S. Federal Agencies.”

About HSPD-12 and FIPS 201

Homeland Security Presidential Directive 12 (HSPD-12) mandates that all U.S. federal agencies begin to issue their employees and subcontractors Personal Identity Verification (PIV) II cards. Standards to comply with the mandate have been defined by the National Institute of Standards and Technology (NIST) in its publication Federal Information Processing Standards (FIPS) 201, Personal Identity Verification (PIV) of Federal Employees and Contractors.

About the SafesITe™ Government Platform

Under the agreement, Gemalto will deploy its Federal FIPS 201 compliant SafesITe Government Platform. The comprehensive solution includes everything needed to successfully deploy and use personalized smart ID credentials for secure access to information systems and federal buildings, as mandated by HSPD-12. The system consists of the following components, all approved by the GSA:

• FIPS 201 72K Dual Interface Smart ID badges and applet for physical and IT access
• SafesITe FIPS 201 client API middleware
• FIPS 201 Card Management System (CMS)
• Consulting, design and implementation services
• Customer support

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is a leader in digital security with pro forma 2005 annual revenues of $2.2 billion, operations in 120 countries and 11,000 employees including 1,500 R&D engineers. The company’s solutions make personal digital interactions secure and easy in a world where everything of value -from money to identities- is represented as information communicated over networks.

Gemalto thrives on creating and deploying secure platforms, portable and secure forms of software in highly personal objects like smart cards, SIMs, e-passports, readers and tokens. More than a billion people worldwide use the company’s products and services for telecommunications, banking, e-government, identity management, multimedia digital rights management, IT security and other applications. Gemalto was formed in June 2006 by the combination of Axalto and Gemplus International S.A. For more information please visit http://www.gemalto.com.

About Intercede

Intercede Group plc is a leading developer and supplier of smart card and identity management software listed on the London Stock Exchange (IGP LN) (IGP.L). The Group’s MyID software manages the secure registration, issuance and lifecycle of digital identities for a wide range of uses. This requires the integration of multiple technologies and products from many different vendors, including smart cards, biometrics, digital certificates and Open Platform applets.

Intercede’s customers cover a range of industries and various US and UK Government agencies and departments. For more information, visit http://www.intercede.com.

Intercede and MyID are registered trademarks or trademarks in the UK and/or other countries.