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Gemplus and Bitfone integrate smart card management with mobile phone software updates

Laguna Niguel, Calif. et Luxembourg, 23 March 2004 - Bitfone Corporation, the leading provider of over-the-air (OTA) software update technology for mobile phones, and Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card based solutions, today announced a strategic agreement to integrate Bitfone's mProve™ 1 into the GemConnect Device Manager2 solution from Gemplus. This combined solution highlights the importance of the SIM card in the software upgrade process. 

"Today, mobile phone configuration and maintenance is a complicated challenge for subscribers, and a barrier to maximizing revenue for wireless operators," said Emmanuel Walckenaer, Vice President, Applications Business Line, Gemplus. "Integrating Bitfone's leading technology for OTA firmware updates into the GemConnect Device Manager will create a seamless experience for mobile operators to upgrade and configure phones for end users remotely and automatically." 

"Smart cards are integral to enabling flexible configuration and control of mobile phones," said Gene Wang, chairman and CEO of Bitfone. "By synchronizing SIM card management, parameter settings and firmware updates, Bitfone will provide increased reliability and convenience for mobile phone users, and reduced customer service costs for carriers." 

To see a demonstration of the integrated mProve and GemConnect Device Manager solution, visit the Gemplus stand #3424 at CTIA in Atlanta, Georgia, March 22-24, 2004.

Notes: 
1. mProve: A 100% fault tolerant over the air software upgrade solution 
2. GemConnect Device Manager: An end-to-end solution leveraging the (U)SIM for remote device management over the air.

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 2002: Gartner-Dataquest, Frost & Sullivan, Datamonitor.) It has the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation.

Gemplus offers an exceptional range of portable, personalized solutions that bring security and convenience to people's lives. These include Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Identity, WLAN, Pay-TV, e-government, access control, and a wealth of other applications.

Gemplus' revenue in 2003 was 749,2 million Euros.

www.gemplus.com

About Bitfone Corporation

Bitfone Corporation provides innovative software solutions for mobile device management. Bitfone's mProve is the wireless industry's leading technology that updates a mobile phone's core embedded software over the air, in a secure and fault-tolerant manner. mProve delivers significant cost savings in the areas of customer service and warranty, provides insurance against software-related device recalls, and accelerates adoption of wireless services. Bitfone is a global company headquartered in Laguna Niguel, California, with offices in China, Finland, Japan and Korea. Bitfone's investors include Nokia Venture Partners, Prism Venture Partners, St. Paul Venture Capital, 3i, Nexit Ventures, Motorola, Inc., Orange Ventures, KTB Ventures, CIR Ventures and Flextronics. For more information, please visit www.bitfone.com.

For more information

Jane Strachey
Telecom PR Manager, Gemplus 
Tel: +33 (0)4 42 36 46 61 / Mobile +33 (0)6 76 49 35 53
e-mail: jane.strachey@gemplus.com

Kerry Butler,
Gemplus PR Manager, North America
Tel: +1 215 390 2840
kerry.butler@gemplus.com

John Votava orValerie Christopherson
Bock Communications, Inc./Bitfone Media Relations
Tel: +1 (714) 540-1030 ext. 25 or 14
jvotava@bockpr.com or vchristopherson@bockpr.com

©2004 Gemplus. All rights reserved. Gemplus, and the Gemplus logo are trademarks and service marks of Gemplus S.A. and are registered in certain countries. All other trademarks and service marks, whether registered or not in specific countries, are the property of their respective owners.

Some of the statements contained in this release constitute forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed or implied by such forward-looking statements. Actual events or results may differ materially. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we 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 release include, but are not limited to: trends in wireless communication and mobile commerce markets; our ability to develop new technology, and the effects of competing technologies developed and expected intense competition generally in our main markets; profitability of our expansion strategy; challenges to or loss of our intellectual property rights; our ability to establish and maintain strategic relationships in our major businesses; our ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on our share price. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this release speak only as of this release. We are under no duty to update any of the forward-looking statements after this date to conform such statements to actual results or to reflect the occurrence of anticipated results.