Axalto R-UIM Cards Open Up Opportunities for CDMA Operators to Enhance Subscriber Experience in North America; Axalto Demonstrates R-UIM Cards With R-UIM Enabled Phones at CTIA Wireless 2006, Booth 1844.

LAS VEGAS -- R-UIM cards and compatible phones are now available in North America, giving CDMA subscribers all of the benefits that were once exclusive to users of GSM networks, Axalto announced today. Axalto R-UIM cards ease handset upgrades, provide international roaming and add to overall convenience for subscribers of CDMA networks like Sprint, Verizon, Alltel and Bell Mobility. Axalto will demonstrate its R-UIM smart cards on R-UIM compatible phones from Nokia today and this week at CTIA Wireless 2006, booth 1844.

"The growing number of CDMA operators in Asia and South America who are purchasing R-UIM phones and cards has clearly motivated handset vendors to bring R-UIM enabled handsets to market," said Paul Beverly, president, Axalto, Americas. "The majority of the world's mobile network operators have already adopted smart card technology for the benefit of their subscribers. We believe that North American CDMA operators will follow suit."

A R-UIM card is used in CDMA mobile phones and is personalized with unique information that identifies the subscriber to the network. It is the equivalent of the SIM card used on GSM phones. Based on the R-UIM, GSM and iDEN standards, Axalto has developed the Simera(TM) Airflex(TM) SIM card that can operate in CDMA, CDMA-1xRTT, CDMA 2000, W-CDMA (UMTS), GSM, iDEN and GPRS networks. With the Simera Airflex card in a suitable phone, CDMA carriers are now able to offer a true worldwide roaming service spanning across all continents and all types of wireless networks.

A R-UIM card can store hundreds of personal phone numbers, text messages and value-added services. Because all of the subscriber data is stored on the card, subscribers can change handsets without losing information or services by simply moving the R-UIM from one handset to another. This reduces related customer care calls by as much as 80% and opens up opportunities for subscribers to have more than one handset for different functions, such as PDA phone for work and a slim camera phone for personal use. The R-UIM card can also boost the prepaid market, as it allows subscriptions to be activated and used independent of handsets.

"With R-UIM cards now available for the North American market, CDMA operators and MVNOs have a huge opportunity to increase both revenue and subscriber loyalty through a user experience that is better than ever before," added Beverly.

About Axalto

Axalto (EURONEXT:AXL) and (EURONEXT:NL0000400653) is the world's leading provider (Gartner 2005, Frost & Sullivan 2004) of microprocessor cards - the key to digital networks - and a major supplier of point-of-sale terminals. Its 4,500 employees, from over 60 nationalities, serve customers in more than 100 countries, with worldwide sales reaching over 3 billion smart cards to date. With 25 years of experience in smart card innovation, the company leads its industry in security technology and open systems.

Axalto 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. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users. For more information, please visit www.axalto.com.