AMMI Becomes First Worldwide Volume Producer of Injection Molded Dual Interface and Contactless Smart Cards.

WASHINGTON--(BUSINESS WIRE)--April 28, 1998--

Widespread Use of Smart Cards for Electronic Payments, Access

Control and Public Transport Now Feasible

American Microdevice Manufacturing, Inc. (AMMI) has become the first company in the world capable of volume production for dual interface and contactless smart cards.

The company is best-known for its secure ABS injection molding process that provides the highest level of physical, environmental and secure protection to the IC, which cannot be removed from the card without destroying the card body. By adapting its production process to produce dual interface and contactless cards the same way standard smart cards are produced, AMMI has become the first supplier to be able to meet volume, cost and quality requirements for the enormous potential markets these cards will serve.

The introduction of contactless and dual interface cards in the mid 1990s signaled a new era for smart cards. Industry analysts have forecasted that they will play a dominant role in the electronic payments, public transport and access control markets, but the main obstacle has been the lack of cost-effective production capabilities.

"AMMI is proud to make major contribution to this market development, making possible today what others have promised for years," said Friedrich Plankensteiner, director of product marketing. "Besides the fact that all our smart cards have the highest temperature range in the industry of up to 85(Degree)C, our contactless and dual interface cards always have the IC in the same position which eliminates bad results during card printing."

AMMI has a production capacity of 500,000 dual interface or contactless smart cards per month and further expansion is planned.

About Smart Cards

A smart card is a plastic card that carries a microprocessor chip and resembles a credit card or other magnetic strip cards. A smart card, however, can be used in many more applications because it contains a programmable microprocessor that allows the user to both store and change information on the card, much like a PC.

Additionally, because they can utilize very sophisticated cryptographic techniques, smart cards provide extremely high security, which also makes them more appealing for a wider range of applications than traditional magnetic strip cards.

Applications to date include electronic commerce (including purchases over the Internet), stored value with loyalty point schemes (e.g. merchant communities - supermarkets, etc.) and contactless technology with a combination of applications: transportation and electronic purse (e.g. highway tolls or bus fares).

About AMMI

Founded in 1991 in the heart of Silicon Valley, San Jose, Calif., American Microdevice Manufacturing, Inc. (AMMI) is a leading manufacturer of Smart cards and Smart card related services. The company offers a wide variety of products to meet the varying needs of customers, including contact, contactless and dual-interface smart cards. AMMI is a smart card solution provider serving customers around the globe with its network of partners in all major countries.

AMMI's diverse product line serves the telecommunications, banking, security, travel, transportation, consumer shopping, healthcare and entertainment industries. In addition to a full range of smart card services like printing, personalization and packaging, AMMI provides consulting services and software development to develop entire card systems, including card readers and terminals.

AMMI is headquartered at 1830 Bering Dr., San Jose, CA 95112-2046. Telephone [phone]. Fax [phone]. E-mail: [e-mail]; www.ammismartcards.com.

CONTACT: AMMI, Global Smart Card Solutions

John Springett, 408/573-7070 x207

[e-mail]