Oberthur Card Systems Launches New ARM Powered 32-bit SIM Technology For 2G/3G Migration

PARIS, FRANCE AND CAMBRIDGE, UK – June 25, 2003 – Oberthur Card Systems [(Euronext : code Euroclear 12413)], one of the world's leading providers of smart card-based solutions and first to introduce Java™ technology in the mobile market in 1998, and ARM, [(LSE:ARM); (Nasdaq:ARMHY)], the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions, today announced that Oberthur Card Systems is using the ARM® 32-bit RISC SecurCore™ technology for its new SIMphonIC™ 3G 64 RSA 32-bit smart card, which enables mobile operators to easily and cost-effectively migrate from 2G to 3G technology , while supporting the performance required by 3G secure authentication algorithms.

Oberthur Card Systems' SIMphonIC 3G 64 RSA 32-bit smart card is a new, high-security, high-performance, dual mode SIM card embedding 2G applications as well as offering 3G SIM Tool Kit capability, compliant with latest ETSI and 3GPP specifications. This new high value SIM card offers a full 64Kbytes of EEPROM and provides an ideal migration path for mobile operators as it enables the seamless upgrade from 2G to 3G services, enabling the backward compatibility from 3G to 2G at minimal cost.

The Oberthur SIMphonIC 3G 64 RSA 32-bit card supports true multi-function capability and is able to run other Java technology-based applications. By implementing an advanced flexible security management, based on several "PIN" code levels and fully supporting the 3GPP Phonebook, the Oberthur USIM card enables the user to develop their own personal database, storing contact details and secured sensitive information and allows synchronization with other devices, e.g. PCs running Microsoft Outlook and hand held PDAs.

"ARM SecurCore technology brings an outstanding level of performance, security, cost-efficiency and ease of development into smart card technology," said Velipekka Kuoppala, SIMphonIC 3G product manager, Oberthur Card Systems. "Building on our success with the SC100™ core - the first ARM SecurCore product - Oberthur is considering integrating more ARM Powered® smart card products into its roadmap by utilizing the SecurCore SC200™ core, which integrates Jazelle® technology for Java acceleration."

"Oberthur's new SIMphonIC 3G 64 RSA 32-bit is an important step for the secure industry, as it indicates the new phase smart card technology is entering. Card issuers and service providers will now be able to offer end-users a range of new applications, which have been enabled by the higher-performance CPUs now being incorporated into smart cards," said Dominique Lutz, secure segment manager, ARM. "The new Oberthur SIMphonIC 3G 64 RSA 32-bit demonstrates the relevance of ARM technology to the smart card marketplace, enabling industry shift for 32-bit performance at 8/16-bit system cost."

Oberthur Card Systems has already tested the new SIMphonIC 3G 64 RSA 32-bit smart card with operators around the world, and is planning a roll out of this product during summer 2003.

Availability
SecurCore technology is available now for licensing from ARM.
The SIMphonIC 3G 64 RSA 32-bit SIM card is available from Oberthur Card Systems.

About Oberthur Card Systems
With sales of 440.2 million Euros in 2002, Oberthur Card Systems is one of the world's leading providers of card-based solutions, software and applications including SIM and multi-application smart cards and services ranging from consulting to personalization.

Innovative products, security expertise and high quality services ensure Oberthur's strong positioning in its three main target markets.

• Payment: 54% of 2002 revenues. The company is the world leader and number one supplier for Visa and MasterCard payment cards.
• Mobile Communications: 29% of 2002 revenues, with open and interoperable solutions based on Java™ technology.
• Identity & Security: emerging markets in which the company plays a pioneering role, with strong expertise in security and a dominant position in e-commerce and Pay-TV.

Close to its customers, Oberthur Card Systems benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (Euroclear code 12413) since July 2000, Oberthur Card Systems is a subsidiary of the François-Charles Oberthur Group. Web site: www.oberthurcs.com.

SIMphonIC is a registered trademark of Oberthur Card Systems

About ARM
ARM is the industry's leading provider of 16/32-bit embedded RISC microprocessor solutions. The company licenses its high-performance, low-cost, power-efficient RISC processors, peripherals and system-on-chip (SoC) designs to leading international electronics companies. ARM also provides comprehensive support required in developing a complete system. ARM's microprocessor cores are rapidly becoming a volume RISC standard in such markets as portable communications, hand-held computing, multimedia digital consumer and embedded solutions. More information on ARM is available at http://www.arm.com/

ARM, ARM Powered and Jazelle are registered trademarks of ARM Limited. SecurCore, SC100 and SC200 are trademarks of ARM Limited. "ARM" is used to represent ARM Holdings plc (LSE: ARM and Nasdaq: ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM Taiwan; ARM France SAS; and ARM Consulting (Shanghai) Co. Ltd.