Contract extends Oberthur’s leadership in federal and state ID card

Los Angeles, Calif., June 4, 2004–The General Services Administration (GSA) has selected Oberthur Card Systems, one of the leading smart card suppliers in the government market, to manufacture and issue its highly secure identity cards. Oberthur has started to issue the hybrid contact and contactless cards on behalf of the GSA to associates, contractors and visitors to government facilities across the country. This agreement further increases Oberthur’s share of public sector ID card programs, which on completion could see cards issued to as many as 28 million government employees. Oberthur already has existing security and access contracts with the Department of Defense, the Department of State, TSA (TWIC) and the U.S. Treasury, among others. The contract was awarded to Oberthur via its partnership with XTec, a leader in secure, interoperable authentication and verifications systems.

With its unique supply chain management expertise, from security printing, to smart card manufacturing and mass issuance, Oberthur is ideally positioned to fulfill the terms of the GSA agreement. The decision to centralize card issuance with Oberthur plays to one of the company’s core strengths: Oberthur is the only company in the country capable of secure card issuance on a scale demanded by the U.S. Government. The agreement has the additional advantage of sparing the GSA from the need to invest resources in a specialized area. The cards are being personalized at Oberthur’s Chantilly, VA, center, though the company can instantly shift production to the company’s other sites in Los Angeles, CA, and Naperville, IL, if needed.

Because of Oberthur’s extensive expertise in security, from printing techniques to FIPS-certified smart card operating systems with strong cryptographic capabilities, the company was also able to incorporate various anti-counterfeit technologies in the ID cards. The highest levels of authentication are guaranteed by the use of biometric information, including photographs and fingerprints, and by a Personal Information Number (PIN).

“Government systems are best secured by smart ID cards that incorporate advanced biometric and anti-counterfeit technologies, and we are proud to have been selected for a project of this importance,” said Thierry Burgess, Oberthur’s executive vice-president of sales and marketing..

About Oberthur Card Systems

With sales of 430.1 million euros in 2003, Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards and services ranging from consulting to personalization.

Innovative products, security expertise and high quality services ensure Oberthur’s strong positioning in its main target markets.

• Payment: 54% of 2003 revenues. The company is the world leader and number one supplier of Visa and MasterCard payment cards.
• Mobile Communications: 33% of 2003 revenues, with open and interoperable solutions based on Java? technology.
• Identity: strong positions in ID projects throughout the world.
• Multimedia: leading position in the Pay-TV market with an end-to-end expertise in the value chain, from software development to manufacturing and personalization
• Transit: focus on the high-end segment with a micro-processor based offer

Close to its customers, Oberthur Card Systems benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (ISIN: FR0000124133) since July 2000, Oberthur Card Systems is a subsidiary of the François-Charles Oberthur Group.

For more information, visit http://www.oberthurusa.com and http://www.oberthurcs.com.

Media Contacts:

Francine Dubois, Oberthur Card Systems
310 884 7981
Francine.dubois@oberthurusa.com