Regulatory News:

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security and XIRING (Paris:ALXIR), a security solutions provider for remote transactions, today announced that they have completed their exclusive negotiations and signed a binding contract related to the acquisition by Gemalto of the XIRING banking activity for 20 million euros.

XIRING is a pioneer of EMV based strong authentication solutions for e-banking and e-commerce, and has developed in ten years an efficient technology and a competitive range of solutions, with more than 12 millions already deployed in Europe.

The transaction concerns all of the current activities of the banking business unit of XIRING dedicated to EMV based strong authentication solutions for e-banking and e-commerce. The contract includes the transfer of the technical and commercial team and all the associated products, IP and technologies, on December 31, 2009.

The transaction has no impact on XIRING non-banking activities or on other activities of Gemalto.

Olivier PIOU, CEO, Gemalto, comments ?XIRING has successfully developed its banking activity to secure online banking and e-commerce. In line with its 2010-2013 strategic plan, Gemalto strengthens here its positioning as a global leader in internet banking and access security solutions.?

Georges Liberman, Chairman and CEO, XIRING, adds ?We have started this activity ten years ago with a technological innovation, and the objective to securing internet banking operations. This transaction with Gemalto acknowledges the success of our strategy and our performance. It also confirms our ability to innovate and develop XIRING on new markets. The global footprint of Gemalto, and its performance, will relay the success of this technology on a worldwide basis. XIRING will now focus its efforts to internationalise its healthcare activity and to develop the electronic identity activity, which is positioned on a high-potential market. We will communicate our development plan on January 13, after the 2009 turnover and the 2010 guidance release.?

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with 2008 annual revenues of €1.68 billion, and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.

Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work?anytime, anywhere?has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.

Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, e-government and national security. We do this by supplying to governments, wireless operators, banks and enterprises a wide range of secure personal devices, such as Subscriber Identification Modules (SIM) and Universal Integrated Circuit Card (UICC) in mobile phones, smart banking cards, smart card access badges, electronic passports, and USB tokens for online identity protection. To complete the solution we also provide software, systems and services to help our customers achieve their goals.

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.

About XIRING

Created in 1998, XIRING is a security solutions provider and develops security software embedded in smart card readers for strong authentication and digital signature. XIRING has distributed over 10 million strong authentication solutions based on banking cards and compliant with MasterCard and Visa programs, and is the leader of the professional solutions market for the SESAM-Vitale French healthcare scheme. In 2008, XIRING posted a turnover of €28.5 million up 20% and an operating margin of €3.5 million up 62%. XIRING is listed on the Alternext compartment of the NYSE-Euronext Paris exchange since September 18, 2006. ISIN code: FR0004155612, Mnemonic: ALXIR.

More information: http://www.xiring.com

Gemalto
Investor Relations:
Vincent Biraud
M.: +33(0) 6 08 48 33 23
vincent.biraud@gemalto.com
or
Corporate Communication
Rémi Calvet
M.: +33(0) 6 22 72 81 58
remi.calvet@gemalto.com
or
TBWA Corporate
Emlyn Korengold, +33 (0) 6 08 21 93 74
emlyn.korengold@tbwa-corporate.com
or
XIRING
Press Relations:
Leslie JUNG, +33.(0)1.4625.8080
pressoffice@xiring.com
or
Investor Relations:
invest@xiring.com