A World First With e-commerce Access From Wireless Handsets.

PARIS--(BUSINESS WIRE)--August 6, 1999--

France Telecom has introduced "Iti Achat," the world's first secure mobile e-commerce service. The service, launched on August 4 on a trial basis, enables customers of France Telecom's Itineris GSM service to make purchases from their mobile phones or via the Internet. Transaction security is guaranteed thanks to a special smart bank card reader integrated in the handset. The technical application complies with the specifications defined by Groupement Cartes Bancaires CB, an interbank consortium responsible for "CB" bank cards in France.

The solution uses a Motorola StarTAC-D handset, the SIMphonIC SIM Toolkit solution from De La Rue Card Systems and a Carte Bancaires CB smart bank card (equipped with a microprocessor).

The project's first two partner banks--Credit Commercial de France and Credit Mutuel--are joined by five vendors, spanning a variety of typical e-commerce products and services. Itineris customers taking part in the trial can purchase goods or services from Alapage.com (CDs, books, videos, concert and theater tickets, etc.), Aquarelle (flowers for all occasions), ChateauOnline (wines from around the world), Marcopoly (household appliances, TVs, stereo equipment, etc.) and Web Shopping France (scale model boats).

The service is very straightforward: Itineris customers contact the merchant (by phone, Minitel or Internet) and place an order. The merchant sends back a GSM short message with the price that is displayed on the screen of the Motorola StarTAC-D handset equipped with the De La Rue SIMphonIC solution. The customer then inserts the CB bank card into the handset and enters the password. Transaction data is transmitted with complete security to one of the two partner banks, Credit Commercial de France or Credit Mutuel.

This service transforms mobile phones into a full-fledged universal payment terminal for all types of remote purchases made by phone, Minitel or Internet. Equally important, it represents an elegantly simple and efficient solution for guaranteeing the security of transactions for customers and merchants alike.

The service should be ready for full-scale commercial launch in about six months, following a second trial phase to begin on September 20. Several more banking partners will join the program for the second trial (including BNP, Caisse d'Epargne, Credit Lyonnais and Societe Generale), along with twenty more merchants.

France Telecom (NYSE: FTE) is one of the world's leading telecommunications carriers, with 1998 consolidated operating revenues of 24.6 billion euros and operations in more than 50 countries. France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, data, wireless, multimedia, Internet, cable TV, broadcast and value-added services. France Telecom held an initial public offering in October 1997 and is listed on the stock exchange in Paris and New York.