Winners Announced in Axalto’s 2005 SIMagine Contest

Amsterdam, February 16, 2005 – Axalto (Euronext: NL0000400653 – AXL) today announced the eight winners in its 6th annual SIMagine™ Worldwide Developer Contest. With SIMagine, Axalto challenges professionals and students from all over the world to
develop innovative wireless applications using Axalto-pioneered Java Card™ technology for SIM cards. The winners and their new SIM card applications will be featured during the 3GSM World Congress at Axalto booth A22. The final Grand Prizes winners have been
announced during an awards presentation on February 15th.

The finalists were chosen by an international jury comprised of leaders in the telecommunications industry, including leading operators such as China Unicom, Cingular Wireless, Telcel, Telefonica Moviles and TIM, and Java Card technology leaders. The eight winners are:

Gold Award
INRIA Rocquencourt, (France), ‘MobiDiQ’

• Silver Award
  Bharti Telesoft International Pvt Ltd (India), ‘PreTUPS (Prepaid Top UP System)’
• Bronze Award
  Trusted Peer Technologies (USA), ‘Collectible Object Game System’
• China Unicom Award
  Calance Corporation (India), ‘Dynamic Cardiogram Analysis Solution’
• Cingular Award
  Beijing University of Posts and Telecommunications (China), ‘Short Message Helper’
• Telcel Award
  Nanyang Technological University (Singapore), ‘SIM-Remote’
• Telefonica Award
  Alberto Gasparini, (Itay) Wireless ‘Ticket Restaurant System’
• TIM Award
  SoNear, in association with France Télécom R&D (France), ‘Liberty Mobile
  Experimentation – SimLib’

“The SIMagine contest benefits everyone in the industry” said Oliver Piou, Axalto CEO “because participants develop innovative new services and Axalto brings these services to market faster than ever before. Subscribers are always looking for new value-added services
as they enhance every facet of their lives. For the operator, providing these services clearly mean more revenue and a larger, more loyal subscriber base. The Axalto SIMagine contest really succeeds in getting the subscriber’s and operator’s demands together, bringing ideas
from all over the world that use the SIMand wireless networks to their fullest capability.”

For the past six years, SIMagine has attracted an extremely creative and varied group of mobile service specialists, application developers, students and amateurs from all five continents to compete for exceptional prizes. This year, participants compete for grants up to 60,000 euros, plus the ability to work with Axalto to convert their ideas into marketable products and use Axalto’s extensive sales reach to promote and sell the solutions to telecom operators.

In the past, SIMagine has inspired winning applications like SIMSave, a software agent that lets you backup a user’s phone data set over the air, to prevent against accidental loss or damage.

About Axalto

Axalto (Euronext: NL0000400653 AXL) is the world’s leading provider of microprocessor smart cards (Gartner Dataquest 2004) — the key to digital networks — and a major supplier of point-of-sale terminals. Its 4500 employees come from 70 nationalities and serve customers in more than 100 countries, with worldwide sales reaching 3 billion smart cards to date. The company has 25 years’ experience in smart card innovation and leads its industry in security technology and open systems.

Axalto continuously creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users.