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[maywillow] 28/10/2004 17:59

[October 28, 2004]

Frost & Sullivan Honour Reiterates Gemplus' Leadership in World Smart Card Readers Market

LONDON, England, October 28 /PRNewswire/ -- Gemplus has been presented the 2004 Frost & Sullivan Award for Market
Leadership in the highly competitive world market for smart card readers. The
company was the number one smart card reader supplier in 2003, with a 21%
market share, shipping some 1.9 million units.


"Among the major smart card reader manufacturers, Gemplus is the only one
to have significant chipset shipments in addition to its PC-link readers,"
notes Frost & Sullivan Industry Analyst Anoop Ubhey. "This extended market
provides Gemplus with a significant edge over the competition and also
positions it as a global provider of reader solutions, rather than being just
a manufacturer of PC-link readers."


Gemplus' unit shipments of smart card readers (PC-link readers as well as
chipsets for keyboards and electronic fund transfer and point-of-sale
(EFTPOS) terminals) grew by a notable 20 per cent over the period 2002 to
2003. Last year, PC-link readers represented 65 per cent of Gemplus' unit
shipment sales with reader chipsets completing the remainder.


Strong performances in key regional markets have further underlined the
company's competitive profile. In 2003, the company implemented high-volume
logical access control projects for governments and enterprises in South
Korea, Taiwan and China.


In North America, the company has been working on high-volume enterprise
security projects for Boeing, and Pfizer. OEM[1] agreements with large
commercial and consumer electronics manufacturers have resulted in the
integration of Gemplus' reader chipsets with standard PC equipment, such as
keyboards and laptops. Growing EMV[2] migrations in Latin America are set to
boost Gemplus' shipments to the region.


Gemplus has also been active in the Europe, Middle East and Africa (EMEA)
region, through national ID projects in the Sultanate of Oman and the United
Arab Emirates, and several projects for major banks in the United Kingdom.
The company is now looking to leverage the anticipated rise in demand for PC
readers in the EMEA region.


As an early entrant into the potentially high growth Chinese and Indian
POS terminals markets, Gemplus is well positioned to capitalise on the growth
opportunities of these developing markets. While China's concerted move
toward EMV migrations is likely to generate demand for chipsets in the POS[3]
terminals segment, PC-link reader and USB token shipments are also projected
to grow substantially in the country over the short term. Gemplus, having a
strong foothold in both segments, is on a path of continued revenue growth
and profitability.


The company is one of the few manufacturers benchmarked to play a
critical role in the interoperability testing phase of ICAO's e-passport
specifications for the United States that is expected to be amongst the
largest smart card projects in the region when implemented.


Consistently diversifying its reader portfolio, Gemplus now has
competencies in contactless technology, basic PC-link readers, USB 'dongles',
SIM copiers and chipsets for terminals. It is also a leading participant in
the niche reader intellectual property rights (IPR) market segment.


"Gemplus' diversification provides it a much wider market spread than
competing reader manufacturers specialising in PC-link readers alone. This
arms the company with a high growth potential and also guards it against the
market risks associated with individual markets - putting it on a path of
sustained, long term growth," concludes Ubhey.


About Frost & Sullivan


Founded in 1961, Frost & Sullivan is recognised as a global leader in
growth consulting. Frost & Sullivan Awards are presented to companies that
demonstrate excellence in their industry, commending the diligence,
commitment and innovative business strategies required to advance in the
global marketplace. Frost & Sullivan rigorously analyses specific criteria to
determine award recipients in a vast variety of market industries and
landscapes. For further information, visit www.frost.com.


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: Gartner-Dataquest (2004), Frost &
Sullivan, Datamonitor). It has sold over 4 billion smart cards.


With security at its core, and 2400 patents produced by its
innovative R&D team, Gemplus delivers a wide range of portable, personalized
solutions in areas including Identity, Mobile Telecommunications, Public
Telephony, Banking, Retail, Transport, Healthcare, WLAN, Pay-TV,
e-government, and access control.


Gemplus' revenue in 2003 was 749 million Euros.


www.gemplus.com


Media Contact:
Kristina Menzefricke
Corporate Communications
Frost & Sullivan
Phone: [phone]
E-Mail: [e-mail]




References:


[1] OEM = Original Equipment Manufacturer


[2] EMV = International standards for chip payment cards as agreed by
Europay, MasterCard and Visa


[3] POS = Point Of Sale


Frost & Sullivan


Media Contact: Kristina Menzefricke, Corporate Communications, Frost & Sullivan, Phone: [phone], E-Mail: [e-mail]

[waldron] 27/10/2004 15:12

Gemplus Reports Strong Third Quarter 2004 Results

27.10.2004 - 07:06 Uhr, Gemplus [Pressemappe]
Luxembourg (ots/PRNewswire) -

Third quarter highlights:
- Group revenue up 13.0% year-on-year and 20.5% year-to-date
- Operating income before restructuring and goodwill further improved to
10.5 million euros
- Net loss, at 8.5 million euros, reflecting the final step of
restructuring
- Free cash flow(1) of 9.5 million euros

Gemplus International S.A. (Euronext: LU0121706294 - GEM and
NASDAQ: GEMP), the world's leading provider of smart card solutions,
today reported results for the third quarter ended September 30,
2004.

-------------------------------------------------------------------------
In millions of euros Q3 Q2 Quarter-on-quarter Q3 Year-on-year
2004 2004 change 2003 change
-------------------------------------------------------------------------
Net sales 214.7 210.5 +2.0% 190.0 +13.0%
-------------------------------------------------------------------------
Adjusted for currency +2.2% +15.5%
fluctuations, discontinued
operations and acquisitions
-------------------------------------------------------------------------
Gross profit 64.0 68.0 -6.0% 54.4 +17.6%
-------------------------------------------------------------------------
Gross margin as a % of 29.8% 32.3% -2.5 ppts 28.6% +1.2 ppts
sales
-------------------------------------------------------------------------
Operating income before 10.5 8.5 +23.1% 0.0 NM
restructuring and
goodwill
-------------------------------------------------------------------------
Net income (loss) -8.5 1.1 NM -13.1 NM
-------------------------------------------------------------------------
Per share data (in euros)
-------------------------------------------------------------------------
Earnings (loss) per -0.01 0.00 NM -0.02 NM
share (fully diluted)
-------------------------------------------------------------------------
Main items of the Balance Sheet
-------------------------------------------------------------------------
Cash and cash 389.2 383.1 +1.6% 356.6 +9.2%
equivalents
-------------------------------------------------------------------------
Main items of the Cash Flow Statement
-------------------------------------------------------------------------
Free cash flow (1) 9.5 -0.6 NM -39.5 NM
-------------------------------------------------------------------------
Net cash flow 6.0 -1.4 NM -49.8 NM
-------------------------------------------------------------------------
Note: The consolidated financial statements of the Company have been
prepared in accordance with International Financial Reporting Standards
(IFRS).

Commenting on the performance for the third quarter 2004, Alex
Mandl, President and Chief Executive Officer, said: "We are pleased
to report continuous strong progress for the sixth consecutive
quarter. Revenue is up 20.5% year-to-date. This healthy growth
evidences Gemplus' ability to capture market opportunities and take
advantage of the strong momentum that we see in our core businesses."

Third quarter 2004 financial review
- Income statement
Third quarter 2004 highlights:
- Revenue up 13.0% year-on-year (+15.5% currency adjusted(2)) and up
2.0% quarter-on-quarter (+2.2% currency adjusted), year-to-date up
20.5%
- Gross margin: 29.8% up 1.2 percentage points year-on-year. Compared
to previous quarter, it reflects pricing pressure not fully offset
by mix improvement. Year-to-date gross margin at 31.0%, up 3.9
percentage points
- Operating income before restructuring and goodwill(3) up 23.1%
quarter-on-quarter, to 10.5 million euros; up 65 million euros
year-to-date to 23.8 million euros

In the third quarter, Gemplus enjoyed strong year-on-year sales
growth, especially in Wireless and Financial Services. On a
geographical basis, revenue in the Americas rose 44.3% and EMEA(4)
grew 15.7%, while Asia was down 8.2%, currency adjusted.

Gross margin was up 1.2 percentage points compared with the third
quarter 2003 mainly driven by Telecom. However, gross margin for the
third quarter was down 2.5 percentage points compared with the second
quarter 2004, to 29.8%. This was mainly driven by pricing pressure
which, unlike in the second quarter, was not fully compensated by an
improvement in product mix. Year-to-date, gross margin was 31.0%, up
3.9 percentage points.

Operating expenses excluding restructuring and goodwill(5)
represented 24.9% of sales during the third quarter, compared to
28.3% for the previous quarter and 28.6% a year ago. They decreased
10.1% quarter-on-quarter, to 53.5 million euros, reflecting mainly a
reduction in general and administrative expenses and seasonality.

As a result, operating income before restructuring and goodwill
was up 10.5 million euros year-on-year and 2.0 million euros
quarter-on-quarter. Year-to-date, operating income before
restructuring and goodwill was 23.8 million euros, up 65.0 million
euros.

Restructuring expenses were 8.6 million euros comprising a
provision of 14.3 million euros related to the planned restructuring
of operations in Germany, partly compensated by a net reversal of
5.7 million euros mainly related to the previous restructuring plan.
Consistent with previous announcements, this provision reflects the
final step of the restructuring plan which was presented in December
2002.

Operating loss was therefore 0.1 million euros including 1.9
million euros of goodwill amortization.

Income tax charges were 6.6 million euros, of which 5.1 million
euros are one-time mostly non-cash items. This includes mainly a
charge of 3.0 million euros relating to the discounting of a carry
back of tax losses in France, and a partial write-down of deferred
tax assets.

The net loss for the third quarter, therefore, reflects
restructuring expenses and mostly non-cash income-tax charges.

- Balance sheet and cash flow statement

Third quarter 2004 highlights:

- Free cash flow of 9.5 million euros(6)

- Improved strong cash position at 389 million euros

The Group's cash position remains strong and is up 6.0 million
euros compared to June 30, 2004, despite restructuring outflows of
2.7 million euros. This increase was driven largely by the improved
level of profit from operations.

Segment analysis
- Telecom
Third quarter 2004 highlights:
- Wireless revenue up 19.9% year-on-year (+23.1% currency adjusted)
- Wireless shipments up 28.7% year-on-year, to 61.2 million units
-------------------------------------------------------------------------
In millions of euros Q3 Q2 Quarter-on-quarter Q3 Year-on-year
2004 2004 change 2003 change
-------------------------------------------------------------------------
Net sales 153.2 154.0 -0.5% 132.3 +15.8%
-------------------------------------------------------------------------
Adjusted for currency -0.3% +18.7%
fluctuations, discontinued
operations & acquisitions
-------------------------------------------------------------------------
Gross profit 51.7 55.1 -6.3% 39.7 +30.1%
-------------------------------------------------------------------------
Gross margin as a % of 33.7% 35.8% -2.1 ppts 30.0% +3.7 ppts
sales
-------------------------------------------------------------------------
Revenue reflects the strong performance of wireless:
- Wireless products & services revenue(7) was up 19.9% year-on-year
(+23.1% currency adjusted), to 131.1 million euros, and up 37.7%
year-to-date (+44.1% currency adjusted), to 393.3 million euros.
- Third quarter wireless shipments grew 28.7% year-on-year to 61.2
million units, and 2.7% quarter-on-quarter. Sales were particularly
strong in Eastern Europe, Africa and Americas.
- While the second quarter showed a strong improvement in product mix,
the third quarter reflects a pause in this trend. High-end card
shipments (including 64kb and above, as well as 3G) accounted for 29.9%
of the total in the third quarter compared to 33.4% in the second
quarter and 21.5% in the first quarter. This reflects strong growth in
regions such as Eastern Europe and Africa, where the market is less
oriented toward high-end cards, and the decision by some large
operators to postpone orders to the fourth quarter, particularly of
64 Kb cards.
- Wireless average selling price (ASP) was down 4.6% sequentially and
2.7% year-on-year, both currency adjusted, as pricing pressure was not
fully compensated by mix improvement, unlike in the second quarter.
- Financial Services
Third quarter 2004 highlights:
- Revenue up 10.7% year-on-year (+11.9% currency adjusted), driven by
the EMV(8) migration
- EMV roll out gained momentum in France, Turkey, Malaysia and
Singapore
-------------------------------------------------------------------------
In millions of euros Q3 Q2 Quarter-on-quarter Q3 Year-on-year
2004 2004 change 2003 change
-------------------------------------------------------------------------
Net sales 53.0 44.7 +18.5% 47.9 +10.7%
-------------------------------------------------------------------------
Adjusted for currency +18.8% +11.9%
fluctuations, discontinued
operations & acquisitions
-------------------------------------------------------------------------
Gross profit 10.1 8.8 +14.2% 12.6 -20.5%
-------------------------------------------------------------------------
Gross margin as a % of 19.0% 19.7% -0.7 ppt 26.4% -7.4 ppts
sales
-------------------------------------------------------------------------

Revenue growth was primarily driven by the EMV migration. Payment
microprocessor card revenue rose 24% year-on-year and 47%
quarter-on-quarter.

Shipments were strengthened by a one-time customer renewal program
in the UK and favorable seasonality in Germany. The EMV roll-out
gained momentum in Continental Europe (France & Turkey) and Asia
(Malaysia & Singapore).

Payment microprocessor card revenue growth was partly offset,
however, by lower sales in other segments.

- Identity and Security

Third quarter 2004 highlights:

- Revenue down 13.9% year-on-year (-10.7% currency adjusted),
reflecting project cycles
-------------------------------------------------------------------------
In millions of euros Q3 Q2 Quarter-on-quarter Q3 Year-on-year
2004 2004 change 2003 change
-------------------------------------------------------------------------
Net sales 8.5 11.8 -28.2% 9.8 -13.9%
-------------------------------------------------------------------------
Adjusted for currency -28.2% -10.7%
fluctuations, discontinued
operations & acquisitions
-------------------------------------------------------------------------
Gross profit 2.2 4.1 -45.4% 2.0 +11.2%
-------------------------------------------------------------------------
Gross margin as a % of 26.6% 34.9% -8.3 ppts 20.6% +6.0 ppts
sales
-------------------------------------------------------------------------

While the second quarter showed strong sales of subsystems, the
third quarter reflects a low in project cycles. Because Identity and
Security is still an emerging market and the Company recognizes
revenue from software and systems under the percentage of completion
method, a linear trend in quarterly revenue should not be expected
due to the often long completion cycles for these projects.

Gemplus continues to recognize a large number of market
opportunities which confirms the growth potential of this business.

Outlook

For the remainder of the year, the Company's financial
performance should continue to benefit from favorable market trends,
notwithstanding continuous selling price pressure.

Considering the third quarter results and given the current
outlook for exchange rates, Gemplus revises upward its operating
income before restructuring and goodwill guidance for 2004, from 30
million euros to 35 million euros.

For 2005, the Group continues to see strong momentum in its core
markets and will pursue its focus on cost efficiency. Gemplus
therefore expects a further improvement in operating income before
restructuring and goodwill.

Accounting methods Gemplus' financial statements are prepared in
accordance with IFRS since the Company's initial public offering in
2000. Therefore, the Company will implement certain IFRS changes
which are applicable as of January 1, 2005. The main changes will be:

- Stock options compensation accounting (IFRS 2): stock-based
compensation will be expensed in cost of sales and operating expenses.
The expense will be measured at grant date, based on the fair market
value of the related options, using either a Black & Scholes or a
binominal-like model, and will be recognized over the vesting period of
the options
- Goodwill amortization (IAS36): Goodwill on acquisitions will no longer
be amortized but will be tested for impairment

Business Highlights

- Telecom

In North America, ATT Wireless expanded its UMTS network to reach
6 US cities and Cingular announced a request for proposal for UMTS
equipment. In addition, Gemplus successfully launched a SIM-server
solution which relies on a SIM applet that monitors handset
information.

In Latin America, many operators confirmed their migration to
high-end cards (64Kb and above) and adoption of OTA technology
continued to expand with the successful installation of 4 device
management platforms.

In China, the role of the card is increasingly recognized as going
beyond the traditional scope of authentication and identification,
with China Mobile using the SIM to promote services to particular
market segments, including youth and VIP. Services based on SMS, such
as SMS Organizer, served to increase SMS data revenue from targeted
youth market segments.

For the 3G market, Gemplus continued to deliver USIM cards for
first launches across the world, with mass deliveries to Sweden and
Germany.

Gemplus invested in SoloMio, a visionary leader in next-generation
Smart Call services and technology, to bring call completion
solutions to operators. Combining the smart card technology with
SoloMio's solutions enables mobile operators to successfully drive
more calls to a billable conclusion, increasing the operator's
profitability and the average revenue per user by capturing revenue
normally lost to uncompleted calls. In addition, these
operator-branded services enhance customer satisfaction and loyalty.

- Identity and Security

Gemplus was presented the 2004 Frost & Sullivan Award for Market
Leadership in the smart card reader market. A leading player in this
market, Gemplus had significant growth in 2003 smart card reader unit
shipments, which enabled the Company to become the leading player in
this highly competitive market segment (source: 2004 Frost &
Sullivan).

Earnings calendar

Fourth quarter and fiscal year 2004 results are scheduled to be
reported on February 9, 2005, before the opening of Euronext Paris.

Conference Call:

The company has scheduled a conference call for Wednesday, 27
October 2004 at 3:00 pm CET (2:00 pm London time and 9:00 am New-York
time). Callers may participate in the live conference call by
dialing:

[phone] or [phone], access code 310896.

The slide show will be available on the web site at 1:30 pm CET
(12:30 London time). The live conference call will also be available
on the IR section of www.gemplus.com.

Replays of the conference call will be available approximately 5
hours after the conclusion of the conference call until 2 November
2004 midnight by dialing:

[phone] or [phone], access Code: 310896#.

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:
Gartner-Dataquest (2004), Frost & Sullivan, Datamonitor.). It has
sold over 4 billion smart cards.

With security at its core, and 2400 patents produced by its
innovative R&D team, Gemplus delivers a wide range of portable,
personalized solutions in areas including Identity, Mobile
Telecommunications, Public Telephony, Banking, Retail, Transport,
Healthcare, WLAN, Pay-TV, e-government, and access control.

Gemplus' revenue in 2003 was 749 million euros.

www.gemplus.com

[ariane] 26/10/2004 14:02

RNS Number:4883E
ID Data PLC
26 October 2004


26 October 2004

ID Data PLC

Closure of OneEighty Software Limited


ID Data plc announces the closure of OneEighty Software Limited (OneEighty), the
developer of ORIGIN-J.

OneEighty has not reached the expected level of financial return and despite an
initial high degree of commercial interest, ID Data has decided to discontinue
its investment in and support of OneEighty.

It is expected that ID Data will acquire the intellectual property rights of
OneEighty and opportunities will be sought to gain financial benefit from what
is still considered innovative technology.

The decision to stop our ongoing development investment will result in an
exceptional charge of approximately #800,000 and will save approximately #75,000
per month in cash outflow.

The closure of OneEighty will not limit ID Data's ability to deliver Java Card
and Java-based solutions to the market or take advantage of the investment
already made in Origin technology.

This difficult decision was taken in light of ID Data's requirement to attain
operational profitability on a monthly basis and focus our skills and resources
on the core business activities that will deliver shareholder return.

In conclusion, our business is moving forward in an expanding market and, by
focusing its efforts on the fundamentals, will continue to win major contracts
and recognition in its chosen markets of Banking, Retail and Government.

It is anticipated that the interim results for the six months to 30th September
2004 will be released in mid-December 2004.



For further information, please contact:

ID Data plc
Peter Cox, Chief Executive Tel: [phone]
[e-mail]

Media Enquiries:
Abchurch
Peter Curtain Tel: [phone]
[e-mail]



Notes to Editors:

ID Data plc (the "Company") is a significant supplier of secure-transaction
systems and smart-card services to the international telephony, banking, retail,
and secure-access sectors. The Company's strategy, to move from commodity
products to value-added services and solutions, has created a solid platform on
which to build further growth. The Company's clients have included GE Capital,
Citibank, EDS (Post Office Counters), Barclaycard, Vodafone, Nectar, Tesco, the
Automobile Association, Esso/Exxon and, in Poland, the Premium Club loyalty card
scheme. The Company has formed agreements with major global corporations to
facilitate rapid market development including partnerships with Toshiba and
Toppan of Japan. The Company has delivered in excess of 17 million chip cards to
the banking market in the UK.

The Company was founded in 1988 and was listed on the AIM market of the London
Stock Exchange in October 2000.


This information is provided by RNS
The company news service from the London Stock Exchange
END

MSCMFBJTMMATBMI


ID Data(IDD)

[grupo] 25/10/2004 07:27

Nectar, the loyalty card scheme, close to signing up new members in the healthcare and leisure industry

source: citywire

[grupo] 24/10/2004 10:51

Loyalty scheme on the brink
Teena Lyons, Mail on Sunday
24 October 2004

HE future of Nectar, the biggest loyalty card programme, is in doubt after the disclosure that some of its major sponsors are considering leaving the scheme.

Sainsbury's, a founder member, announced a review of Nectar last week. Chief executive Justin King refused to rule out leaving the scheme, which accounts for half the ailing group's £40m marketing budget.


'That doesn't feel like the right proportion to me,' said King. 'We are looking to save a significant amount of money from that in the next three years.'


It has emerged that another founding member, Barclaycard, has slashed the amount it spends on the card and no longer offers the scheme to new customers.


Comments from some of the 16 sponsors show how perilous Nectar's future is. Speaking on the condition of anonymity - they still have contracts with operator Loyalty Management UK - many said they were unhappy with the programme.


'It's not exactly driving sales,' said one retailer. 'We are certainly not in a rush to renew the contract.' Another sponsor said: 'It's not quite as exciting as we were led to believe it was going to be when it launched.'


Loyalty Management claims that Nectar has more than half of all UK households participating - and the range of sponsors covers 40% of an average household's spending.


Nectar, which has handed out more than £340m in rewards, had a shaky start in 2002. Loyalty Management had to halt the £40m launch advertising campaign when its registration website crashed.


In a recent survey of shoppers' preferences, cards came tenth after clean toilets.


But Brian Sinclair, client services director at Loyalty Management, said Nectar was a thriving scheme that offered valuable benefits to sponsors. 'It's the best possible investment,' he said. 'We are confident that our sponsors feel that.'

[grupo] 23/10/2004 06:44

Ten O'Clock Tech
Transit Cards Get Smart
Arik Hesseldahl, 10.22.04, 10:00 AM ET

NEW YORK - When the swipe of the MetroCard replaced the thunk of the token in the New York Subway system, I thought it was a pretty good idea. That was until the first time I got stuck at a turnstile that kept flashing "PLEASE SWIPE AGAIN" as I was rushing in vain to catch a train.

This turnstile freeze-up used to happen a lot more than it does now, in part, I think, because New York's Metropolitan Transit Authority is taking better care of its equipment.

But now the MTA is starting to think about what lies beyond the MetroCard of today, and it looks like it's going to be a smartcard. Paul Fleuranges, the MTA's vice president of corporate communications, says that within its next five-year budget plan there is a proposal to spend some $90 million on upgrading the current automated fare-collection system, and begin laying the groundwork for the introduction of smartcards.

Smartcards are a technology I keep hearing about but have yet to encounter in daily life. In the late 1990s I first ran across a French outfit, Gemplus (nasdaq: GEMP - news - people ), that was pushing the idea of smartcards as the method of choice for network access in the corporate computing environment. Today most people I know still sign on to their work computers with a user name and password.

Yet Gemplus supplied 570 million smartcards last year, and has sold a total of 4 billion over the years. Its rival, Axalto, also French, a former unit of the oil services concern Schlumberger (nyse: SLB - news - people ), has sold another 3 billion, and just last week landed a contract to supply the U.S. government with the technology for electronic passports, which will go into all new passports by 2006.

The MTA's goal with smartcards, Fleuranges says, is to eliminate or at least reduce the MetroCard swipe, in favor of "contactless" smartcards that don't require physical contact with the turnstile. They're already in use on transport systems in London and Washington, D.C.

"Will we abandon the swipe entirely? Probably not," he says. "You'll probably see a combination card that has both a magnetic strip and a chip."

But once you put the chip on that card, you can do a lot more with it than simply allow access to the subway. That's where Rick Johnson comes into the picture. He's chief executive of Cubic Transportation Systems, a unit of Cubic (amex: CUB - news - people ), based in San Diego.

He imagines a world in which the same card you use to get on the subway may also be the card you use to get cash from an automatic teller machine, or to buy a newspaper at the subway station.

Cubic is already well under way with deploying just such a product in London. The company is a principle shareholder in the TranSys consortium, the group behind the Oyster smartcard system that provides a seamless transition from buses, Tubes, trams and the rest of London's mass-transit system. He said a bank--he didn't name it--has plans to issue its own financial smartcards that will also be compatible with the transit system. Think of it as a MetroCard and a credit card in one.

Beyond that, keep an eye on Japan. Sony (nyse: SNE - news - people ) and wireless carrier NTT DoCoMo earlier this year unveiled mobile phones that contain a Sony-made chip, called Felica, that essentially turns the phone into a wallet that can pay for groceries, movie tickets, candy from vending machines, and fares on trains and subways, with just a wave of the phone near a reader. Another Japanese wireless carrier, KDDI, has said that by mid-2005 it will put similar phones using the Sony chip on the market. Vodafone Group's (nyse: VOD - news - people ) Japanese unit has also been making some noise about getting in on the game.

I like that idea, but I have a bad habit of keeping my wireless phone just out of reach. I'd hate to have to fumble for it, especially when I'm running to catch a train.

[maywillow] 13/10/2004 08:59

Chip and PIN by January 1




Sky Money Check out our personal finance news


THREE MONTHS TO DEADLINE

Nearly half the local stores in the country have said to have taken no action to install technology capable of handling chip and PIN card payments, even though they will be mandatory in less than three months.


A poll of 500 independent retailers shows how far behind many retailers are in getting their stores ready for the January 1 deadline.

In the New Year, any retailer without chip and PIN are personally liable to any subsequent fraudulent payment in their store.

The survey by trade magazine Independent Retail News shows 59% have taken no action and 47% do not expect to meet the deadline.

"Not only do the public seem unaware of the new chip and PIN cards, but the retailers expected to accept them are worryingly equally in the dark," said editor Richard Siddle.

The magazine is launching an Action Week campaign to help retailers cope with the new technology, offering advice and information.

The magazine also reports that 31% of local stores have already failed to meet the October 1 deadline to meet requirements of the latest phase of the Disability Discrimination Act.

[grupo] 04/10/2004 14:28

HMV Chip and PIN, 04/10/2004

Trintech, provider of transaction reconciliation and payment infrastructure solutions, has announced that HMV has selected Trintech's EMV certified Smart 5000 card system, following acquirer accreditation, to facilitate the acceptance of Chip and PIN-enabled debit and credit cards.
HMV, specialist retailer of music, DVD and games products, is rolling out about 2,000 Smart 5000 card systems throughout its 190 stores across the UK and Ireland. The implementation will be completed by the end of October, in line with the UK mandate to migrate and implement Chip and PIN by January 2005. HMV conducted a testing and evaluation procedure involving three competing vendors. HMV opted for Trintech's Smart 5000 card system, because of its ability to integrate seamlessly with HMV's existing IBM POS solution, the makers claim. Featuring a hybrid card reader that accepts both chip cards and magnetic swipe cards, the Smart 5000 also has a stylish, intuitive design, the makers say, large display and aesthetic appeal that is in keeping with the busy and modern environment of the HMV retail stores. Steve Consalvi, Finance Systems Manager at HMV, said: "HMV required a leading Chip and PIN partner with a strong market reputation and proven, reliable hardware. Selecting Trintech has helped us to introduce Chip and PIN with minimal impact to the business."

Eamon Keating, General Manager of Trintech's Retail Division, says: "We are delighted HMV selected Trintech's Smart 5000 solution. Our recognised leadership within the electronic payment market, combined with our accreditation process experience provides HMV with a fast and efficient accredited Chip and PIN solution, that will help combat card fraud when the UK mandates a shift to Chip and PIN in January 2005."

Source:

[waldron] 02/10/2004 07:57

Gemplus presents smart technology at Gitex 2004


Press Release
CPI - Friday, October 01, 2004



E-MAIL | PRINT


Gemplus, a smart card solutions provider, is exhibiting at Gitex Dubai this year by showcasing its technology for smart card-based ID solutions and electronic passport authentication.

At the booth, Gemplus will demonstrate "ResIDent", its secure ID card solution, which is currently being implemented for nationwide deployments in both the UAE and Oman. Gemplus will also showcase, "GemBorder" its electronic passport technology for secure contact-less authentication of passport-holders.

The company's regional office in Dubai holds a strong local presence in the ME, as demonstrated by recent significant successes in the national ID card space. Throughout the exhibition, the Gemplus team will be available for private meetings with the attendees, in order to discuss and showcase how smart card solutions can enhance their business.

"Gemplus is excited to again exhibit at the largest and most important IT fair in the Middle East," said Pierre Servettaz, Director, Gemplus ME. "The Middle East is a key market for Gemplus, which is well reflected through our recent successes in Oman and the UAE. Gitex provides the perfect venue for us to showcase smart card security innovations in the fields of ID and e-passport, and we look forward to exploring the many business opportunities offered here."

Gemplus will be exhibiting within the Dubai Internet City (DIC) Community Zone (DIC-25) in Concourse 2, between Exhibition Halls 7 and 8.

[grupo guitarlumber] 29/9/2004 12:57

Paris, 29 September 2004 – SAGEM announces that it has joined SIMalliance, an international association of leading SIM card manufacturers.

Along with fellow companies, SAGEM will contribute to the establishment of industry-wide specifications that foster the development of mobile telephony services. For example, SIMalliance has developed STK browsing technology (S@T) which has led to a significant deployment of Value Added Services among operators worldwide. SIMalliance has also helped increase Java Card interoperability.

Most notably, the association is working to facilitate interoperability between SIM cards and handsets. SAGEM's expertise as both SIM card and handset manufacturer therefore places it in an ideal position to help SIMalliance meet this new challenge. SAGEM is the only company in the world to benefit from this dual technological know-how, and as such is both reactive and innovative when developing SIM cards and services.

Groupe SAGEM is an international high-technology group. Major league player in the world, and number one of the French mobile telephones market, SAGEM is Europe's first actor in fax machines and provider of global solutions and multi-service networks. Third largest European group in the defence and security electronics market, world leader in fingerprint biometrics as well as major actor in avionics and on-board information systems for aircraft, SAGEM maintains a presence in more than 20 countries world-wide.

For more information, please visit the SAGEM web site: www.sagem.com

SIMalliance is a non-profit organization of leading SIM manufacturers (Axalto, Gemplus, Giesecke & Devrient, Oberthur Card Systems, ORGA Kartensysteme, Prism, ST Incard, Xponcard and now SAGEM) created to promote the benefits of SIM cards and SIM-based services. SIMalliance :

- Act as an incubator for SIM Card enhancements to be proposed to standardisation bodies and industry forums,

- Boosts adoption of innovative and interoperable SIM Card solutions,

- Eases the integration of the SIM Card in the new mobile data architectures and services landscape.

SIMalliance promotes key functionalities and usage of the SIM Card that help energise the new generation of mobile services.

All the outcomes of SIMalliance are freely available on our web site : www.simalliance.org

Groupe Sagem

Press Information:

Hervé PHILIPPE - Executive VP, Chief Financial Officer

Tel. [phone] / Fax. [phone]

E-mail: [e-mail]

SIMalliance

Press Information:

Anne-Sophie DURAND - Communication Manager

Tel. [phone] / Fax. [phone]

E-mail : [e-mail]

© CompanynewsGroup

[grupo guitarlumber] 29/9/2004 09:50

Schlumberger Sells Remaining Stake In Axalto



Friday September 17, 5:29 AM EDT


PARIS (Dow Jones)--Oil services company Schlumberger Ltd. (SLB) said Friday that its Dutch subsidiary has begun the sale of its remaining 12.5% stake in smart card maker Axalto Holding NV (AXL.FR).

Schlumberger's 5.06 million shares in Axalto will be sold via an accelerated bookbuilding process to institutional investors, Schlumberger said.

The sale will be handled by Deutsche Bank (DB) and Societe Generale (13080.FR) , Schlumberger said.

Wednesday Axalto said it had swung to a net profit of $20.5 million in the first half compared with a net loss of $1.6 million a year earlier.

Schlumberger floated 87% of its former subsidiary Axalto on the Paris stock exchange in May.

Company Web site:



-By Greg Keller, Dow Jones Newswires; [phone]; greg.keller@ dowjones.com

[maywillow] 21/9/2004 18:11

ActivCard Addresses President's Homeland Security Directive
Tuesday September 21, 1:00 am ET
Leading Provider of Secure Identification Software Offers Open License Interface; Enhancing Interoperability, While Maintaining Highest Levels of Security


FREMONT, Calif., Sept. 21 /PRNewswire-FirstCall/ -- ActivCard Corp. (Nasdaq: ACTI - News), a global provider of strong authentication and trusted digital identity solutions for secure remote access, single sign-on and secure employee ID cards, today announced that ActivCard is now offering an open license to the complete interface specification of its market leading Smart Card ID Applets Suite. This announcement adds the specification of the applet administrative interface and access control to the company's long list of contributions to open smart card interoperability and security standards. The ActivCard Smart Card applets represent the successful achievement of a four-year standardization and development effort with DoD, NIST, and other US government agencies. ActivCard's trusted digital identity solutions and smart card applets are the most widely deployed across the US government. This move to further open ActivCard technology is a direct response to support the Homeland Security Presidential Directive 12. The president's directive, issued on August 27, 2004, calls for mandating a Common Identification Standard for federal employees and contractors. ActivCard is the worldwide leader of smart card ID solutions used by enterprise and government to ensure that people are who they say they are before being granted access to information, services, buildings, and other protected areas.
(See for more information.)
"By directing a government wide standard for identification, our President is recognizing the need for more security in our nation," said Ben C. Barnes, chief executive officer at ActivCard. "We are well positioned as our smart card ID solutions are ready to deploy now, cost effective, biometric compatible and proven at securing identification and access on a large-scale, while addressing the requirements of the President's directive."

Smart card ID applets are necessary components of a complete ID solution deployment for highly secure and large-scale identification and access control systems. ActivCard has deployed complete ID solutions consisting of card and credential management solutions and client software middleware in multiple government agencies including the largest smart card deployment in the US, the US DoD Common Access Card (CAC). By opening up the specifications of the complete set of interfaces to the ActivCard smart card applet, ActivCard empowers system integrators, card issuance software vendors, and smart card application developers to extend their solutions to utilize today, FIPS certified, NIST GSCIS 2.1 compliant ID applets. The availability of these specifications now complements ActivCard's release and open license of its applet usage interfaces in 2000 and 2002, which enable client software interoperability on the desktop.

ActivCard has now taken a bold step to addressing the Presidential Directive HSPD-12's goal of promulgating a federal standard for secure and reliable forms of identification, for the verification of an individual's identity, which is resistant to fraud, tampering, and counterfeiting, and can be rapidly authenticated electronically.

The ActivCard Smart Card ID Applets have been FIPS (Federal Information Processing Standard) certified on smart cards from each of the leading card vendors to give customers the freedom to procure smart cards from multiple sources. In addition, ActivCard's ID applets have been developed in compliance with the Government Smart Card Interoperability Specification (GSCIS) to enable the deployment of interoperable smart card systems across government agencies.

"Smart cards and the ActivCard Smart Card ID Applets are changing the way businesses and governments secure both network and application access," said Frank Bishop, senior vice president of sales and marketing at ActivCard. "By publishing the ActivCard applet specifications, ActivCard allows system integrators and agencies to extend security, improve employee usability and reduce the cost of protecting facilities and networks."

ActivCard offers a comprehensive suite of applets including: PIN/ID management, PKI, generic container (GC)/database and card authentication. Optionally, the suite allows on card biometrics verification to control access to other applets, with an open interface to any biometric vendor and technology. ActivCard applets have been issued on over five million smart cards.

For details on licensing and developer support programs, contact: Ed MacBeth, SVP Global Alliances, at [e-mail].

About ActivCard

ActivCard is a global provider of strong authentication and trusted digital identity solutions for secure remote access, single sign-on and enterprise access cards. ActivCard's scalable systems and strong authentication solutions are deployed by organizations, from enterprises to governments, around the world. ActivCard provides organizations with industry-specific solutions offering increased security, reduced cost, and user convenience. The modular product design allows customers to add capabilities as required, preserving their investment. Headquartered in Fremont, California, ActivCard has sales and service centers in more than nine countries. For more information, visit www.activcard.com.

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with changes in our management team, fluctuations in operating results, our history of losses, and other risks identified in our periodic filings with the United States Securities and Exchange Commission, including, but not limited to, those appearing under the caption "Risk Factors" in our most recent Annual Report on Form 10-K, and in our Quarterly Reports on Form 10-Q. Copies of these filings are available from ActivCard and on the SEC's website at www.sec.gov. Actual results, events and performance may differ materially from our forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ActivCard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

NOTE: ActivCard is a registered trademark and Return on Identity is a trademark of ActivCard in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.




--------------------------------------------------------------------------------
Source: ActivCard Corp.

[maywillow] 18/9/2004 13:12

LONDON, September 16 (New Ratings) - Analysts at UBS downgrade Oberthur Card Systems (OCY.BER) from "buy" to "neutral." The target price is set to €6.6

[grupo guitarlumber] 15/9/2004 07:17

CHIP AND PIN ON TRACK

The programme to introduce credit cards with microchips across the UK is on track to meet its January deadline, according to the banking industry.

The so-called "chip and pin" cards are designed to cut fraud ,which cost consumers more than £400m last year.


A pilot scheme was launched in Northampton last summer and around 87% of shoppers have used the cards to pay for goods or services in the town.

Another 75% there said they used one of the cards for at least half of their purchases.

The cards aim to combat fraud by having a microchip in them which stores information more securely than a magnetic strip.

Consumers also verify a purchase by typing in a four digit pin number rather than signing a receipt.

Three out of five consumers across the UK now have a chip or pin card in their wallet.

Hundreds of thousands of shops, bars, restaurants and hotels have installed the technology.

[ariane] 09/9/2004 09:32

LONDON (AFX) - ebookers PLC, the pan-European online travel company, said it
has joined Nectar, the UK's largest loyalty programme, as the exclusive online
travel agent sponsor.
Nectar is a coalition loyalty programme allowing customers to earn more
points, more quickly using just one card. Nectar now has sixteen sponsors
including leading UK brands such as Sainsbury's, Barclaycard, Debenhams, BP,
Vodafone and Ford.

[e-mail]
slm/

[grupo guitarlumber] 03/9/2004 08:21

BEIJING (AFX) - Royal Philips Electronics (NYSE PHG) said it has won a deal
to supply a wireless ticketing system for the busiest section of China's Great
Wall outside Beijing.
The new e-ticketing system, using Philips' MIFARE Ultra Light technology,
will soon replace the existing magnetic card access at the Badaling tourist
stretch of the Great Wall, which receives around 4 mln visitors from around the
world each year, the company said in a statement.
The financial value of the deal was not given.
The system is compatible with Beijing's One-Card ticketing system, which
will be used at the 2008 Olympics. It also supports the smart card system
currently running on some of the capital's transport networks, which is based on
the MIFARE technology as well.
The new system "will serve as an important case study for implementation in
other venues and events around China, most notably the Olympics," said Tony
Lear, senior vice president and general manager of Philips Semiconductors China,
in the statement.
China is already Philips' biggest market for its contact-less chip
technology.
More than 100 mln MIFARE IC-based cards have been distributed in China to
date, Lear added.
[e-mail]
fy/vm/tr

[ariane] 28/8/2004 17:44

Company Spotlight: What nCipher can do for you, the investor
By Peter Shearlock
28 August 2004


Spotting a company that is about to start making profits after years of losses can be a rewarding business - particularly if it has a big cash pile.

At the height of the dotcom boom, investors threw money at new technology companies. In many cases, the cash evaporated long before a real business could take its place. But not always. In the case of nCipher, which operates in the IT security market, the company is in danger of making a profit while still sitting on £40m of the cash it raised in October 2000.

In fact, that understates what nCipher has achieved. It originally raised £99m. In February last year, it handed back £64m of that to shareholders because it didn't need it.

Now the numbers are interesting. Last year, operating losses shrank from £7.7m to £2.5m and half-year figures due on 7 September should show the trend has continued into 2004. Assuming the cash burn is as good as over (there may be a small outflow from operations for a while yet, but not more than the interest earned on the remaining cash), that £40m money pile sits strangely besides a market valuation for the whole company of just £43m. In other words, the business itself is currently valued at just £3m.

In a note on the company in June this year, Ian Mitchell of brokers Charles Stanley forecast that the company would make a profit of almost £2m next year. And that, he thought, was conservative as it took no account of several positive things that could be happening to nCipher by then. Plainly, either he is wrong or the stock market is wrong.

What does nCipher do? Well, this is where it gets really interesting - though since I lack a masters degree from MIT and am over 25, I am unlikely to do the explanation justice. If you make a payment over the net, it will almost certainly be communicated over a secure link protected by encrypted code. Each organisation has its own password key for authenticating data. If it loses that to a hacker, its business takes a pronounced lurch downwards.

Believe it or not, but lots of companies store their password key in a server. That, says Mr Mitchell, "has been likened to securing your front door with the strongest lock available and then leaving the key under the mat". The safest approach is to store it in a separate hardware device. And that is what nCipher makes. In fact, it is the world leader in encryption protection hardware.

This is a fertile field to be in right now. According to the Department of Trade and Industry, more than two-thirds of all companies and more than 90 per cent of large ones suffered at least one malicious attack on their systems last year. The internet has changed the way many companies relate to their suppliers. Online collaboration in everything from purchasing to billing cuts costs but adds to security risks.

The arrival of VoIP (Voice over Internet Protocol) technology means employees with laptops or mobile phones operating remotely can plug in to a company's network as easily as if they were in the office.

That's all well and good provided the link is secure.

The nCipher system has helped to define common industry standards for hardware security. It has more product validations under the US government's Federal Information Processing Standard than any other firm. Their customers range from Bacs, the UK payments processing service, to the US navy. They even include Microsoft.

Perhaps the most exciting area is the credit card market. Both Visa and MasterCard have initiatives to cut card fraud, including the introduction of Chip and Pin. Under the Verified by Visa scheme, card- issuing banks will be required to introduce higher levels of security - including the storage and processing of encryption keys within separate hardware. That is supposed to happen by the end of 2005. This opens up a potentially huge market for nCipher, which has just the piece of kit required.

The company is also involved in a trial involving 5,000 Barclays customers. Each has been given a card reader that generates a unique password for transactions on websites. It is designed to combat "phishing", in which card details are stolen over the net.

Without the card reader, the card details themselves are useless. If the test is successful and the technology is adopted by Barclays and other banks, nCipher will cash in.

There is a host of new products in related fields, any one of which could be big business for nCipher. For example, one digitally signs, seals and time-stamps electronic documents in a tamper-proof fashion.

The payback from these products may be some way off. But one thing is certain: nCipher will not be calling for more cash to fund them.

[e-mail]

[ariane] 28/8/2004 09:06

Smart card integration important for future growth
Tuesday, August 3 2004
Increased smart card adoption rates could hinge on how well smart cards are able to integrate with emerging logical and physical access control technologies–like USB tokens and prox cards--according to a new report from Frost & Sullivan.


--------------------------------------------------------------------------------
Integration of Smart Cards with Upcoming Technologies Essential to Boost Adoption Rates
PALO ALTO, Calif. (BUSINESS WIRE)--The uptake of smart cards is likely to be threatened by the emergence of alternative technologies such as proximity and magnetic stripe cards in physical access control applications and universal serial bus (USB) tokens in logical access control applications.

New analysis from Frost & Sullivan (www.smartcards.frost.com), World Access Control (Physical & Logical) Market, reveals that revenues in this industry totaled $62.4 million in 2003 and are projected to reach $86.9 million in 2008.

"Even as smart card manufacturers remain wary of rival technologies, the ability of smart cards to host multiple applications is expected to give them an edge over other technologies," says Frost & Sullivan Research Analyst Karthik Nagarajan.

Capable of balancing initial costs with the highest security architecture, smart cards provide a proven cost-effective solution. Further, they can be integrated with competing technologies to derive maximum benefit as they are highly flexible and can be easily modified and upgraded to complement other systems.

For instance, though USB is a potentially rival technology, USB dongles using embedded smart cards in SIM format increase overall efficiency. These USB tokens use a smart card-based network login system that eliminates the need for an actual card reader. The device can be plugged into a computer's standard USB port to authenticate users and digitally sign sensitive business transactions.

In combination with a SIM-based card, USB can be used in virtual private network (VPN) and in gaining corporate ID access to a computer network. Manufacturers are also considering the idea of merging USB dongles with contactless technology to provide both physical and logical access control.

However, not all users require the multi-application advantage of smart cards. It makes better business sense for them to opt for a single-purpose card. For instance, proximity cards are relatively cheaper than contactless cards for physical access control. Therefore, as a short-term investment for basic physical security access, organizations prefer this technology.

"Managing existing identifications systems alone is a huge expense for many companies," says Frost & Sullivan Research Analyst Jafizwaty Haji Ishahak. "Moreover, in a card-based electronic access control system, cards need to be replaced or re-issued for various reasons, and this further increases the expenses incurred."

The process of implementing a smart card system is also rather cumbersome, as it requires card issuance and personalization overheads.

Though the price of readers has decreased for logical access control, a company needs to purchase smart cards and provide or integrate their PCs with readers. It is also essential that the company have a card management system to manage the card issuance and revocation.

Further, many corporations prefer storing digital certificates and private keys on the hard drives rather than incurring the expenditure of installing readers and issuing smart cards.

"Smart cards are well positioned to keep pace with changing end-user demands as they are easily compatible with other systems," notes Ishahak. "Manufacturers should try to take advantage of smart cards' superior efficiency and incorporate them with other emerging technologies to maximize profits."

World Access Control (Physical & Logical) Market, part of the Smart Card Subscription, evaluates the uptake of corporate ID smart cards in both physical and logical access control applications. It analyzes the success of pilot programs that have incorporated this technology and provides a comprehensive analysis of revenue potential and growth opportunities for different types of access control smart cards. Regional analysis of the market is provided to help companies identify key opportunities for market penetration.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.

World Access Control (Physical & Logical) Market
The following is a list of key industry participants: ActivCard, Inc.; Ask Jeeves Inc.; Axalto; Bell ID; Cass Technology Sdn. Bhd.; Gemplus SA; Giesecke & Devrient GmbH; HID Corp.; INSIDE Contactless; LEGIC Identsystems AG; Nanjing JinDongNan Smart Card Co Ltd.; Oberthur Card Systems; ORGA Kartensysteme GmbH; SAMSUNG; Setec; Shanghai Luneng Smart Card Co Ltd.; Smart Card Society of China Information Industry Trade Assoc.

Contacts
Frost & Sullivan
Julia Paulson, 210-247-3870 (North America)
[e-mail]
or
Kristina Menzefricke, [phone] (Europe)
[e-mail]
or
Donna Jeremiah, [phone] (Asia Pacific)
[e-mail]
www.frost.com

[maywillow] 26/8/2004 08:48

Card fraud prevention 'pays off'


New technology has helped cut card fraud, says Datamonitor
UK credit card fraud dropped for the first time in nine years during 2003, a survey has found.
Market analyst Datamonitor said credit card fraud fell 5% to £402.4m last year, from £424.6m in 2002.

It added that the introduction of chip and pin cards - where customers verify a purchase by keying in a four-digit pin - should cut the figure further.

However, Datamonitor warned it expected identity fraud to increase as criminals find new ways to target victims.

"The efforts spent by the various players in preventing card fraud are finally paying off," report author Karina Purang said.

She added that the introduction of new technology - such as neural network systems which flag up transactions that do not match a cardholder's unusual spending behaviour - had helped to curtail card fraud.

Fraud growth slows

However, after analysing figures from the Association for Payment Clearing Services (APACS), Datamonitor found the fall in fraud was "entirely" down to a reduction in the amount of fraud committed abroad on UK cards.

The UK has been successful in tackling fraud, but more can be done

Karina Purang, Datamonitor
Within the UK, fraud is still rising "albeit at a slower rate", Datamonitor added.

Card-not-present (CNP) fraud surged to all time highs of £116.4m last year - up nearly 300% on the levels seen in 1999.

CNP, counterfeit and frauds on lost or stolen cards made up 80% of total fraud losses last year, Datamonitor found.

And despite the introduction of new crime prevention methods, the UK still lags Europe on the fraud front.

Datamonitor said that of all the fraud losses in Europe, the UK accounts for more than 70%.

New technology

However, the roll out of the new chip and pin cards is expected to improve matters.


Criminals may switch from card fraud to identity theft

The cards cut fraud by including a smart chip, which can store more information than the usual magnetic strips, and also by having users verify transactions by keying in a pin number rather than signing a receipt.

France pioneered the technology more than 10 years ago - reportedly cutting fraud by almost 50% following their introduction, Datamonitor said.

The new cards are becoming much more common with almost half of the UK's check-out tills converted to accept payments from the new cards.

Latest figures from the Chip And Pin Programme show more than 50 million new cards have been sent out to around 25 million of the UK's 42 million card holders.

"We have now reached as turning point in the chip and pin rollout," Sandra Quinn a spokeswoman for the Chip and Pin Programme said.

"Every day more shops are switching on and cards are being issued so the number of people who may well be asked for a pin for the very first time is higher than ever."

Identity threat

While anti-fraud measures are improving, the report said UK consumers still faced dangers.

People don't understand how much their personal information is worth

Neil Munroe, Equifax

"The UK has been successful in tackling fraud, but more can be done," Ms Purang said.

Datamonitor warned that with new measures making card fraud tougher, criminals had "another trick up their sleeve" - namely identity fraud.

It said the lack of a national identity card had partly contributed to losses through this method of fraud jumping more than 44% to £29.7m last year.

It advised consumers to take measure to protect their personal documents, for example shredding utility bills or anything that would serve as a proof of address before throwing them away.

"People don't understand how much their personal information is worth," said Neil Munroe from Equifax - which runs a credit protection registration scheme.

He added: "Effectively it's a gold credit card - if it gets into the wrong hands someone can spend a lot of money with it."

[grupo guitarlumber] 16/8/2004 12:05

Watchdog's Big Brother UK warning


British information watchdog says government should clarify ID cards
The UK could "sleepwalk into a surveillance society" as a result of ID cards and other plans, the information commissioner Richard Thomas has warned.
He is concerned about how much information will be collected and shared under the ID card plans.

Mr Thomas is also concerned about plans for a population register and a database of every child.

He used General Franco's Spain as an example of what can happen when a state knows too much about its citizens.


The government has changed its line over the last two or three years as to what the card is intended for

Richard Thomas
Information Commissioner

Mr Thomas says, although he is not for or against an ID card scheme itself, he is concerned about the government's failure to spell out their exact purpose.

He told The Times newspaper: "My anxiety is that we don't sleepwalk into a surveillance society where much more information is collected about people, accessible to far more people shared across many more boundaries than British society would feel comfortable with.

"The government has changed its line over the last two or three years as to what the card is intended for.

"You have to have clarity. Is it for the fight against terrorism? Is it to promote immigration control? Is it to provide access to public benefits and services?"

'Paranoid'

A Home Office spokesman said: "The Government remains committed to its plans for a national identity card scheme which, among other things, will protect people in the fight against identity fraud and organised crime."

Mr Thomas said he did not want to sound "paranoid" but pointed to General Franco's Spain and Communist Eastern Europe as examples of what can happen when a government gets too powerful and has too much information on its citizens.

Mr Thomas, who is information commissioner for England and Wales, also raised concerns about to the Citizen's Information Project, planned by the Office for National Statistics, which would create a population database for use by public services.

And he expressed concerns about a database of all children from birth to adulthood proposed in the Children Bill.

'Unique number'

The proposal followed the inquiry into the death of Victoria Climbie which criticised the failure to share information about the youngster.

Under the scheme, every child would have a unique number which would enable the different organisations that come into contact with children, such as social services, police and educational bodies to share information.

Mr Thomas told the Times: "There are reasons why we need to promote better information sharing where children are at risk, but whether the answer is to create a database of every child in the country should be questioned."

[waldron] 27/7/2004 14:34

July 27, 2004 05:00 AM US Eastern Timezone

NASA Selects Philips' Advanced MIFARE DESFire Contactless Smart Card Chip Technology to Meet Its Secure Facility Access Needs

SAN JOSE, Calif.--(BUSINESS WIRE)--July 27, 2004--Royal Philips Electronics (NYSE:PHG)(AEX:PHI) today announced that the National Aeronautics and Space Administration (NASA) has selected Philips' advanced MIFARE(R) DESFire contactless chip technology to enable secure smart card access to its facilities. Compliant with the United States government's Government Smart Card Interoperability Specification (GSC-IS) standard, Philips' chip technology is being incorporated into smart cards deployed to agency employees and contractors for immediate identity authentication. Other government agencies, such as the U.S. Department of Interior, are also implementing physical access systems compliant with the GSC-IS interoperability specification. Philips' MIFARE DESFire V0.6 is the first chip solution currently compliant with this specification.


In partnership with smart card system integrator MAXIMUS, NASA is the latest federal agency to move from low-frequency (125Khz) to industry-standard ISO 14443 technology for increased interoperability based on GSC-IS. Different agencies using a GSC-IS compliant physical access system based on the secure MIFARE DESFire will have the option to allow each other's physical access cards to work in different secure areas, further enhancing inter-agency collaboration.

A field trial is planned at the Marshall Space Flight Center in Alabama this summer, with potential expansion to 2,000 employees. If the trial is successful and approval is secured from the Office of Management and Budget, NASA plans to deploy more than 100,000 smart cards before the end of the 2005 fiscal year. This number includes cards for contractors and government employees.

"Security is at the forefront of concern for our government customers today," said Jeremy Grant, vice president, enterprise solutions, MAXIMUS. "Agencies do not want to invest in systems that will not be interoperable. Through our partnership with NASA and Philips we are developing advanced smart card access control systems that will be able to work seamlessly with other federal department and agency facilities following the GSC-IS."

"Philips' proven MIFARE DESFire offers a secure and cost-effective solution for high volume use," explained Jan-Willem Reynaerts, general manager for market sector Transport and Logistics at Philips Semiconductors. "As the provider of the first GSC-IS compliant chip solution, Philips continues to be a leading innovator in the contactless smart card market, and demonstrated proponent of open standards."

About Philips' MIFARE DESFire

Philips' MIFARE DESFire provides a convenient, multi-functional smart card silicon solution ideal for mobility, identity and e-government schemes. The chip's core characteristics -- Fast, Innovative, Reliable, and sEcure, as noted in the "Fire" part of its name -- are supported by a unique combination of flexible memory organization structure alongside impressive high data transaction rates, making it ideal for secure contactless services.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands(NYSE:PHG)(AEX:PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of $32.8 billion (EUR 29 billion) in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 165,600 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. News from Philips is located at www.semiconductors.philips.com.

MIFARE is a registered trademark of Koninklijke Philips Electronics N.V.

Contacts


Philips
Ria Kos, [phone] (Europe)
[e-mail]
Paul Morrison, 408-474-5065 (USA)
[e-mail]
Christine Kao, [phone] (Asia Pacific)
[e-mail]

[maywillow] 22/7/2004 22:48

Oberthur Chief Criticizes Competitors

Oberthur Card Systems CEO Pierre Barberis blasted competitors for "playing games" and offering "absolutely crazy quotes" on low-end SIM cards in China, India and other Asian countries.


Barberis also accused some potential customers in the region with making unreasonable demands on prices. He made the comments during a conference call with financial analysts today after release of Oberthur's second quarter revenue figures. During the conference, Barberis signaled the vendor would abandon the low-end SIM market in Asia unless prices and profit margins were adequate.


The often-blunt chief executive has made that pledge before, along with the complaints about the pricing policies of his competitors, but the second quarter figures show he's serious.


The vendor's sales of SIM cards in Asia-Pacific dove by 64.1% during the quarter and business in the region accounted for a paltry 4.8% of total sales. Despite that, Oberthur, the fourth largest smart card vendor worldwide, showed an overall revenue gain of 11.1% to 108 million euros (US$131 million) for the quarter. That was on the strength of banking smart card sales, which increased by more than 30% and, to a lesser extent, sales of high-end SIMs and ID cards. For the first two quarters combined, Oberthur had sales of 210.8 million euros, 4.9% higher than the same period last year at actual exchange rates. The vendor plans to release its profit and loss figures for the quarter in September.


"That Asia is a very competitive market would be an understatement," said Barberis. "It's an overly competitive market, where some of our competitors and some of their sales forces have been playing games. We have seen absolutely crazy quotes in (some of) these countries. We have experienced absolutely unbelievable requirements from some potential customers."


Nearly 60% of Oberthur's 31.6 million euros in SIM sales during the quarter were high-end cards, carrying 64 kilobytes of rewritable memory or above. Most of these were shipped to Europe, especially southern Europe. Among other customers, the vendor supplies 128K SIMs to Italian operator Telecom Italia Mobile. The high-end SIMs in the product mix kept price decreases in check, says Barberis. Overall, Oberthur's SIM revenue increased by 5% during the quarter. It reported shipments of 14.8 million units.


A spokesman later said Oberthur was not pulling out of the market for 16K cards entirely in China, India or other countries. "We made a policy of not selling at any price."


That policy will likely hurt its market share, however. Even before the second quarter, Oberthur's sales to Asia were weak compared with other major vendors. Last year, Oberthur had the lowest percentage of sales to Asia of any of the top seven Europe-based smart card suppliers, according to Card Technology's annual card vendor survey.


Barberis today emphasized banking cards as a "major growth vector" for the company. During the quarter, Oberthur says it shipped 15 million debit or credit smart cards complying with international EMV specifications. Most went to the United Kingdom, but the vendor says it also shipped cards to Hungary, the Czech Republic, Greece and Australia, among other countries. It also sees opportunity for growth in supplying card personalization. Sales of banking smart cards reached 25.6 million euros during the quarter, compared with 18.9 million during the same period in 2003.


In its ID and Security unit, Oberthur shipped 3.4 million cards, with revenue of 10.2 million euros, up 23.5% from a year earlier. These were mostly sales of pay-TV cards in Europe, but the vendor also is supplying some cards, mainly for pilots, for chip-based ID cards and documents.


Barberis said chip supplies are definitely tightening, forcing the vendor to enter into longer-term chip-supply contracts with silicon suppliers-of six, nine or more months. Overall, Barberis says he expects the chip supply situation to slow the decrease of prices for finished smart cards prices or even result in price hikes.


Other industry observers have said it is unlikely card vendors will be able to increase prices, even if chip prices rise. Barberis later acknowledged as much.


"Obviously, we're not in a situation to dictate to our customers at which price we're going to sell to them," he says. "For the time being, our customers have not yet realized the evolution of the situation; they're still asking for massive prices decreases."


(2004-07-22)