Regulatory News:

XIRING (Paris:ALXIR), a security solutions provider for remote transactions, today announced a turnover for the second quarter of 2009 of €7.8 million, representing 4.5% growth. The turnover of the first half of the year thus totalled €11.8 million as of 30 June 2009, compared with €12.9 million for the same period in 2008 (-8.5%). This turnover is in line with the company's roadmap.

In the Banking activity turnover generated in the first half of 2009 by the strong authentication solutions based on bank cards reached €4.3 million, compared with €6.0 million in the first half of 2008, representing a difference of -28.6%. In regards to the second quarter, the majority of the turnover of €3.0 million, compared with €4.2 million, i.e., a difference of -27.4%, was generated by the ongoing contracts with XIRING's big UK clients. The difference with the first half of 2008 is due to the postponed implementation of the new programmes in France and in Italy, which in no way jeopardizes them. However, XIRING noted a significant increase over this period in the number of trials launched, in particular by French banks, into strong authentication equipment.

In the Healthcare activity, the turnover for the first half of the year reached €7.1 million, compared with €5.7 million in the first half of 2008, representing a 25.2% increase. The turnover for the second quarter of €4.6 million was up 73.1%, confirming the dynamic nature of this business line, which is barely affected by the current economic climate. The international portion of the Healthcare activity turnover was of €0.7 million for the first half of the year, representing the release of XIRING's "Xi-Plus 5" product in Germany.

Georges Liberman, Chairman and CEO, stated: "The turnover of the first half of 2009 is in line with our roadmap. The performance of the Healthcare activity, with our first deliveries in Germany, confirms the relevance of our offering and our international strategy. In the Banking activity, the postponements of the first half of the year do not call into question the corresponding deployment decisions."

XIRING, noting the increased time taken for decisions on the strong authentication market in banking, forecasts a turnover for the 2009 financial year at the lower end of the previously predicted spectrum, at €27 million.

Moreover, in view of the changes noted on the product mix, the company estimates that its operating income for the first half of the year will be over 15% of the turnover.

2009 first half year results will be published on September 8, 2009

after the closing of the Paris stock exchange.

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 MasterCard and Visa standard credit cards, 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, representing organic growth of 20%, and operating income of €3.5 million, up 62%. XIRING has been listed on the Alternext compartment of the NYSE-Euronext Paris exchange since 18 September 2006. ISIN code: FR0004155612, mnemonic: ALXIR.

More information: http://www.xiring.com-http://www.remotecardauthentication.info - http://www.homechipandpin.co.uk

XIRING
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