Axalto Named Cingular Supplier.

AUSTIN, Texas -- Axalto (Euronext NL0000400653 AXL), the world's leading provider of microprocessor cards, announced today that Cingular Wireless has named Axalto a supplier of Subscriber Identity Module (SIM) cards for its GSM-based wireless services. The new agreement extends the existing supplier relationship.

"Axalto is pleased to support Cingular in the achievement of its progressive strategies for new value-added services and higher bandwidth," said Paul Beverly, president of Axalto, Americas. "We will work closely with Cingular to coordinate the development of SIM cards with its network and service enhancements."

Earlier this year Axalto was honored with the "Frost & Sullivan Global Market Leadership Award" for "its exceptional performance in the global smart cards for GSM market over 2002 and 2003." The award recognizes "Axalto's proven excellence in all areas leading to market leadership, including identification of market challenges, drivers and restraints, as well as superior strategy development and implementation," according to Frost & Sullivan.

The SIM card is a "subscriber identity module" that secures the telephone service and identifies individual subscribers. It is part of the Global Standard for Mobile Communications (GSM) used by Cingular and other leading wireless companies in more than 100 countries throughout the world. The SIM card is an essential marketing tool for wireless operators. It provides a one-to-one connection with subscribers, because it contains the unique service choices, preferences and personal information such as phone books of individual subscribers. Portable from one phone to another, the SIM card is the link between operators and subscribers who are frequently changing their handsets.

About Axalto

Axalto (Euronext NL0000400653 AXL), is the world's leading provider of microprocessor cards (Gartner 2003, Frost & Sullivan 2003) -- the key to digital networks -- and a major supplier of point-of-sale terminals. Its 4,500 employees serve customers in more than 100 countries, with worldwide sales reaching 3 billion smart cards to date. The company has more than 20 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. Smart card solutions provide convenience, security and privacy to public and private services operators, their customers and end users. For more information, visit us at www.axalto.com.