Gemalto acquires Multos business from Keycorp

Amsterdam, the Netherlands - Sept 1, 2008 (AllPayNews) - Gemalto, the world leader in digital security, today confirmed that it has completed the acquisition of Keycorp’s smart card business, the leading fabless provider of MULTOS™ products and services to the Financial Services and Government sectors, and of Multos Ltd, the company that operates the remote activation service and high-security facility that is at the center of the MULTOS security architecture. Gemalto is paying 25.7 million Australian dollars (approximately 15 million Euros, or 22 million US dollars) for Keycorp’s smartcard business assets, IP portfolio, trademarks and Multos Ltd.

The assets acquired include Keycorp’s implementation of the highly secure MULTOS smart card operating system, the MULTOS brand, the associated patents and the Key Management Authority (KMA) that manages MULTOS card activations worldwide. Approximately 40 MULTOS experts will join Gemalto, mostly based in Australia and UK. The acquisition will contribute over €15 million of annual revenues to the Secure Transactions and Government Programs segments of Gemalto on an annual basis, with over half of the revenues coming from Asia.

MULTOS was previously owned by Mastercard Worldwide through Mondex, and is promoted by the Maosco consortium, which includes Infineon, Samsung, Dai Nippon Printing and Thales in its membership. MULTOS was the first smartcard operating system to receive the highest security certification possible, ITSEC E6 High / EAL6+.

“We will continue to develop and actively promote MULTOS in the payment and ID world” commented Philippe Cambriel, Executive Vice President for Secure Transactions. “In particular, for the high-end and multi-application segments of EMV payment cards, MULTOS fully complements our Java product and services range to provide a comprehensive portfolio. It extends our base of blue chip banking customers, and also brings a highly recognized secure post-issuance service for banking applications, with proven efficiency, scalability and value”.

Olivier Piou, Gemalto Chief Executive Officer, added: “This important bolt-on acquisition reinforces our software and services offering across Gemalto business lines. It will allow Gemalto to leverage its large installed base of intelligent devices with a commercially-demonstrated highest-security post-issuance activation service, which will be critical for example in mobile payment and NFC (Near Field Communication) applications. The timing is also right: the turn-around of Secure Transactions has been successfully completed, the segment posted strong results in the first half 2008, and it is now operating on strong foundations, ready to pursue the next opportunities.”

About Keycorp

Keycorp is a leading provider of complete secure electronic transaction solutions from multipurpose smartcards and payment solutions to fleet services comprising asset management, help desk support, training and consulting.
Headquartered in Sydney, Australia, Keycorp has offices in Melbourne, Montreal and Toronto in Canada, with partners in Asia, Europe and North America. Our clients include some of the world’s leading financial institutions and payment processors, as well as prominent systems integrators and resellers. These include ANZ Bank, Cardex, Caltex, Commonwealth Bank of Australia, Kookmin Bank, Loblaws, National Australia Bank, Oyak Bank, Toys “R” Us and Westpac Banking Corporation. Keycorp is listed on the Australian Stock Exchange (ASX:KYC) in 1987.

About Gemalto

Gemalto is the leader in digital security with pro forma 2007 annual revenues of over €1.6 billion, more than 85 offices in 40 countries and about 10,000 employees including 1,300 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 deployment of managed 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.
For more information please visit www.gemalto.com [1].

This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Gemalto.

This communication contains certain statements that are neither reported financial results nor other historical information and other statements concerning Gemalto. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, events, products and services and future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates" and similar expressions. These and other information and statements contained in this communication constitute forward-looking statements for purposes of applicable securities laws. Although management of the company believes that the expectations reflected in the forward-looking statements are reasonable, investors and security holders are cautioned that forward-looking information and stat ements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements, and the company cannot guarantee future results, levels of activity, performance or achievements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this communication include, but are not limited to: the ability of the company's to integrate according to expectations; the ability of the company to achieve the expected synergies from the combination; trends in wireless communication and mobile commerce markets; the company's ability to develop new technology and the effects of competing technologies developed and expected intense competition generally in the companies' main mark ets; profitability of expansion strategy; challenges to or ! loss of intellectual property rights; ability to establish and maintain strategic relationships in its major businesses; ability to develop and take advantage of new software and services; the effect of the combination and any future acquisitions and investments on the company's share prices; and changes in global, political, economic, business, competitive, market and regulatory forces. Moreover, neither the company nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this communication speak only as of the date of this communication and the company are under no duty, and do not undertake, to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise except as otherwise required by applicable law or regulations.

Contacts:
Investors Relations
Vincent BIRAUD
M.: +33 (0) 6 08 48 33 23
vincent.biraud@gemalto.com [2]

TBWA Corporate
Emlyn Korengold
M. : +33 (0) 6 08 21 93 74
emlyn.korengold@tbwa-corporate.com [3]

Corporate Communication
Rémi CALVET
M.: +33(0) 6 22 72 81 58
remi.calvet@gemalto.com [4]