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About Gemalto

Mr. Paul Beverly
Executive Vice-President
Corporate Marketing & President North America
Gemalto, Inc.
www.gemalto.com
Paris: GTO.PA

SecuritySolutionsWatch.com: Please give us an overview of Gemalto's business, target markets and solutions.

Paul Beverly: Gemalto has grown to become a $2.71 billion (€1.9 billion) global leader in digital security. The business units that serve our primary markets are Mobile Communications, Machine-to-Machine (M2M), Security, and Secure Transactions during the last 24 months.

Our Mobile Communications segment represents just over half of our revenue. More than 450 mobile network operators (MNOs) worldwide benefit from our software, OTA server platforms and related services. Growth is coming from promising developments such as new form factors in mobile payment and customer wins in client-server software and services. An example is helping wireless MNOs provision and load applications onto mobile phones so the handset becomes a mobile wallet. We also help MNOs expand their services onto the Internet giving users the ability to protect, organize and share data securely. Some 1.8 billion mobile subscribers rely on at least one of our solutions. In North America in particular our platforms and devices are helping MNOs deploy new services using ultra-high speed data speed and IP connectivity associated with the rollout of new 4G networks.

In June 2010, Gemalto acquired Cinterion Wireless Modules GmbH (CWM), making M2M one of our primary business units. Cinterion is the leading provider of industrial M2M wireless communication modules. Now Gemalto is the leading supplier of M2M devices and solutions based on HSPA, UMTS, EDGE, GPRS and GSM technologies. M2M is a rapidly growing new business within Gemalto's business portfolio. More

Mr. Phillipe Benitez
Vice President of Marketing and Business Development
Secure Transactions & North America
Gemalto, Inc.
www.gemalto.com
Paris: GTO.PA

SecuritySolutionsWatch.com: Thanks for taking the time to talk with us today. Can you give us a little background about your role at Gemalto to start things off?

Philippe Benitez: Certainly. I am focusing on next-generation payment solutions in North America. Specifically, I am working on EMV migration in the US – the migration from magnetic strip cards to chip-and-pin cards, and on mobile payment solutions.

SecuritySolutionsWatch.com: While you focus on payment solutions, Gemalto offers products and services in several different markets – including Telecommunications, Financial Services and Retail, Government and Transport. Schlumberger. Can you give us a brief understanding of how Gemalto serves all these different markets?

Philippe Benitez: Certainly. Gemalto works with its customers across all business units at a fundamental level – the digital security level. We focus on helping banks, telecom operators, governments and corporations provide better, more convenient and secure services to their customers. In Telecommunications, for example, we provide SIM cards as well as the remote administration Over the Air (OTA) infrastructure that enables mobile subscribers to surf, make calls and pay securely from their cell phone. In the government space, we work with the Department of Defense to provide secure access to buildings and computer networks with the common access card (CAC Card). We also manufacture the new e-Passports. Any citizen that has requested a passport in the last few years has received a document that contains a microprocessor chip, which speeds entry into the US and prevents forgery of passports. For banks, the area that I focus on, we provide EMV payment cards, which use a secure chip, and the personalization and fulfillment services to get the cards into user’s hands. Gemalto also offers NFC mobile payments services, and the technology to secure access to e-banking sites. We are a trusted partner to all of our customers who rely on us to facilitate the digital transactions consumers perform every day. More

Mr. Thomas Flynn
Vice-President, Online Banking and Authentication
Gemalto North America
www.gemalto.com
Paris: GTO.PA

SecuritySolutionsWatch.com: One sees on Gemalto.com that Online Banking and Online Authentication have been particularly strong performers in 2010, growing by 49% in the first half. What is propelling those sectors ahead?

Thomas Flynn: From our roots in the smart card industry, Gemalto has grown to become the €1.91 billion ($2.7B USD) global leader in digital security. Last year we produced and personalized 12 billion secure digital devices, which we complement with systems and services to provide total solutions for our customers.

Online Banking and Online Authentication growth stems from the need to replace passwords with a stronger form of identification and multi-factor authentication.

As we all know, freedom of access places a huge additional burden on security. It's essential to verify the identity of authorized users without hampering the convenience and efficiency of cloud computing. At the same time, complex software tends to have more security vulnerabilities, not fewer. This is increasing demand for 'strong' (two- or even three-factor) authentication. For example, a user might need a password as well as a physical component like a fingerprint; or an ultra-secure one-time password generated by a smart card and reader.

Three interconnected factors are fueling this trend. First, mobility is becoming more important, with remote access and cloud computing on the rise. Cost savings and convenience are driving more use of cloud computing, and since security is the number one barrier to the development of the cloud computing market, this in turn creates demand for secure authentication solutions like those from Gemalto.

Cloud computing services - that is, data and applications that are accessed via the Internet or virtual private networks - are going mainstream. IDC expects spending on IT cloud services to reach $42 billion in 2012. By then, it will represent 25% of IT spending growth and nearly a third of growth the following year.

Secondly, banks, businesses and governments are under regulatory pressure to improve protection of their customers' private and personal information. According to IDC, compliance was the driving factor for up to 85% of all online authentication purchases in 2009. U.S. examples of these regulations include Homeland Security Presidential Directive 12 (HSPD-12), which led to smart card-based identity credentials for all federal employees, and the Health Insurance Portability and Accountability Act (HIPAA), which requires more tightly controlling access by administrators and practitioners to individuals' healthcare records.

The third factor is that online fraud continues to increase. In what some called "the hack of the century," cybercriminals penetrated Epsilon, one of the world's largest email companies, that at the time handled more than 40 billion emails annually for more than 2,200 leading global brands including Verizon Communications, Hilton Hotels, Kraft Foods, Kroger Company and AstraZeneca. The reason for the increase is that the threatscape has changed dramatically in recent years. Hackers are
increasingly able to penetrate endpoints and download Trojans, keyloggers and other malware onto endpoint PCs or laptops to steal login passwords.

These are the factors driving the growth in Gemalto's Online Banking and Online Authentication security solutions and services to authenticate identities online and make sure information and transactions remain secure.

As for our solutions, under our Protiva brand Gemalto offers the complete solution for strong authentication, from devices and readers to applications and authentication servers. Examples include multifunction smart card credentials used for physical and network access control, one-time password (OTP) tokens, the Ezio optical reader for secure online banking and our suite of eBanking solutions with more than 20 million online banking customers worldwide. According to Frost & Sullivan, Gemalto is the market leader in chip-based corporate security solutions.

We also provide our Coesys fulfillment and support services to these sectors as well.

Our solutions provide the highest level of protection against fraud while being simple for IT departments to administer and very easy to use, ensuring maximum compliance with security protocols. More

Mr. Sebastien Cano
Senior Vice President
Telecommunications
Gemalto, Inc.
www.Gemalto.com

SecuritySolutionsWatch.com: Thank you for joining us today, Sebastien. Please give us an overview of your role at Gemalto and background.

Sebastien Cano: Gemalto is the world leader in digital security. We are a B2B company with three business units that focus on Telecommunications, Financial institutions, and Government and Large Corporations. In Telecommunications, we provide operators with a vast range of solutions to address the increasingly complex mobile ecosystem that now serves nearly five billion subscribers worldwide. I manage our activity in that sector for Gemalto North America. Our customers are the wireless network operators, including all the Tier 1 operators in North America and many others. In my 16 years with Gemalto I have always concentrated on telecommunications. In my previous assignments, I ran our convergence solutions business group in France, and prior to that managed our operations in Brazil and Spain. Gemalto’s global culture and worldwide presence gave me the opportunity to develop a real international experience of the telecommunications industry. More

Mr. Francois Lasnier
Vice President and General Manager, Security
Gemalto North America
www.gemalto.com

SecuritySolutionsWatch.com: Thank you for joining us today, Francois. Please give us an overview of your background and your role at Gemalto.

Francois Lasnier: Gemalto’s digital security solutions target three major markets, Telecom, Security and Secure Transactions. I manage the Security business in North America, and our focus is identity security and data protection for the government and enterprise sectors. My history with Gemalto spans several years. Initially, I was in the banking sector within the product development team where I managed the first smart card implementation to use Visa’s Java-based Open Platform, now an industry standard. My early background was in program management, working on smart card-based electronic toll collection systems and RFID-based vehicle identification systems in Tokyo. I received my master’s degree in electrical engineering and computer science. More

Mr. Neville Pattinson
Vice President of Standards and Government Affairs
Gemalto North America
www.gemalto.com

SecuritySolutionsWatch.com: Thank you for joining us today, Neville. Please give us an overview of your background and your role at Gemalto.

Neville Pattinson: I currently lead the Government Programs activity within the Security business unit of Gemalto North America. In this role, I focus on government based e-documents and identity credentials. This focus has provided several opportunities to be an advisor to U.S. government policy makers, program managers and key technology partners providing products and services to the federal government. In addition to this role, I am the chairman of the Smart Card Alliance and chair of the Smart Card Alliance’s Identity Council; a founding member of the Secure ID Coalition and am currently serving a three year appointment to the Department of Homeland Security’s Data Protection and Integrity Advisory Committee. Any views expressed in this interview are not representative of the Smart Card Alliance or the Department of Homeland Security or the DHS DPIAC. More

Mr. Jack Jania
Vice President and General Manger
Secure Transactions Business Unit
Gemalto, Inc.
www.gemalto.com

SecuritySolutionsWatch.com: Thank you for joining us today, Jack. Please give us an overview of your background and your role at Gemalto.

Jack Jania: We organize our business units around our three major markets, Telecom, Security and Secure Transactions. I head up secure transactions for Gemalto North America. The secure transactions team drives all business activity in the banking and credit/debit card sector, including both contactless payment and smart card-based bankcards now being deployed in Canada. Prior to my current role, I spent several years within the mobile telecom business unit at Gemalto, and was involved in the launch of 3G smart card technology and NFC mobile payment. My early background was in semiconductor component test engineering and system-level architecture. This allowed the opportunity to participate in the design and implementation of the high-speed information systems for the American Stock Exchange, the Chicago Board of Trade, the Chicago Options Exchange and other stock exchanges. My career started in the broadcast industry, and worked with leading broadcasters and events around the world. More

	In The Boardroom™ Let's Talk™ Press Room About Us Research Reports Contact Us

About Gemalto Mr. Paul Beverly Executive Vice-President Corporate Marketing & President North America Gemalto, Inc. www.gemalto.com Paris: GTO.PA SecuritySolutionsWatch.com: Please give us an overview of Gemalto's business, target markets and solutions. Paul Beverly: Gemalto has grown to become a $2.71 billion (€1.9 billion) global leader in digital security. The business units that serve our primary markets are Mobile Communications, Machine-to-Machine (M2M), Security, and Secure Transactions during the last 24 months. Our Mobile Communications segment represents just over half of our revenue. More than 450 mobile network operators (MNOs) worldwide benefit from our software, OTA server platforms and related services. Growth is coming from promising developments such as new form factors in mobile payment and customer wins in client-server software and services. An example is helping wireless MNOs provision and load applications onto mobile phones so the handset becomes a mobile wallet. We also help MNOs expand their services onto the Internet giving users the ability to protect, organize and share data securely. Some 1.8 billion mobile subscribers rely on at least one of our solutions. In North America in particular our platforms and devices are helping MNOs deploy new services using ultra-high speed data speed and IP connectivity associated with the rollout of new 4G networks. In June 2010, Gemalto acquired Cinterion Wireless Modules GmbH (CWM), making M2M one of our primary business units. Cinterion is the leading provider of industrial M2M wireless communication modules. Now Gemalto is the leading supplier of M2M devices and solutions based on HSPA, UMTS, EDGE, GPRS and GSM technologies. M2M is a rapidly growing new business within Gemalto's business portfolio. More Mr. Phillipe Benitez Vice President of Marketing and Business Development Secure Transactions & North America Gemalto, Inc. www.gemalto.com Paris: GTO.PA SecuritySolutionsWatch.com: Thanks for taking the time to talk with us today. Can you give us a little background about your role at Gemalto to start things off? Philippe Benitez: Certainly. I am focusing on next-generation payment solutions in North America. Specifically, I am working on EMV migration in the US – the migration from magnetic strip cards to chip-and-pin cards, and on mobile payment solutions. SecuritySolutionsWatch.com: While you focus on payment solutions, Gemalto offers products and services in several different markets – including Telecommunications, Financial Services and Retail, Government and Transport. Schlumberger. Can you give us a brief understanding of how Gemalto serves all these different markets? Philippe Benitez: Certainly. Gemalto works with its customers across all business units at a fundamental level – the digital security level. We focus on helping banks, telecom operators, governments and corporations provide better, more convenient and secure services to their customers. In Telecommunications, for example, we provide SIM cards as well as the remote administration Over the Air (OTA) infrastructure that enables mobile subscribers to surf, make calls and pay securely from their cell phone. In the government space, we work with the Department of Defense to provide secure access to buildings and computer networks with the common access card (CAC Card). We also manufacture the new e-Passports. Any citizen that has requested a passport in the last few years has received a document that contains a microprocessor chip, which speeds entry into the US and prevents forgery of passports. For banks, the area that I focus on, we provide EMV payment cards, which use a secure chip, and the personalization and fulfillment services to get the cards into user’s hands. Gemalto also offers NFC mobile payments services, and the technology to secure access to e-banking sites. We are a trusted partner to all of our customers who rely on us to facilitate the digital transactions consumers perform every day. More Mr. Thomas Flynn Vice-President, Online Banking and Authentication Gemalto North America www.gemalto.com Paris: GTO.PA SecuritySolutionsWatch.com: One sees on Gemalto.com that Online Banking and Online Authentication have been particularly strong performers in 2010, growing by 49% in the first half. What is propelling those sectors ahead? Thomas Flynn: From our roots in the smart card industry, Gemalto has grown to become the €1.91 billion ($2.7B USD) global leader in digital security. Last year we produced and personalized 12 billion secure digital devices, which we complement with systems and services to provide total solutions for our customers. Online Banking and Online Authentication growth stems from the need to replace passwords with a stronger form of identification and multi-factor authentication. As we all know, freedom of access places a huge additional burden on security. It's essential to verify the identity of authorized users without hampering the convenience and efficiency of cloud computing. At the same time, complex software tends to have more security vulnerabilities, not fewer. This is increasing demand for 'strong' (two- or even three-factor) authentication. For example, a user might need a password as well as a physical component like a fingerprint; or an ultra-secure one-time password generated by a smart card and reader. Three interconnected factors are fueling this trend. First, mobility is becoming more important, with remote access and cloud computing on the rise. Cost savings and convenience are driving more use of cloud computing, and since security is the number one barrier to the development of the cloud computing market, this in turn creates demand for secure authentication solutions like those from Gemalto. Cloud computing services - that is, data and applications that are accessed via the Internet or virtual private networks - are going mainstream. IDC expects spending on IT cloud services to reach $42 billion in 2012. By then, it will represent 25% of IT spending growth and nearly a third of growth the following year. Secondly, banks, businesses and governments are under regulatory pressure to improve protection of their customers' private and personal information. According to IDC, compliance was the driving factor for up to 85% of all online authentication purchases in 2009. U.S. examples of these regulations include Homeland Security Presidential Directive 12 (HSPD-12), which led to smart card-based identity credentials for all federal employees, and the Health Insurance Portability and Accountability Act (HIPAA), which requires more tightly controlling access by administrators and practitioners to individuals' healthcare records. The third factor is that online fraud continues to increase. In what some called "the hack of the century," cybercriminals penetrated Epsilon, one of the world's largest email companies, that at the time handled more than 40 billion emails annually for more than 2,200 leading global brands including Verizon Communications, Hilton Hotels, Kraft Foods, Kroger Company and AstraZeneca. The reason for the increase is that the threatscape has changed dramatically in recent years. Hackers are increasingly able to penetrate endpoints and download Trojans, keyloggers and other malware onto endpoint PCs or laptops to steal login passwords. These are the factors driving the growth in Gemalto's Online Banking and Online Authentication security solutions and services to authenticate identities online and make sure information and transactions remain secure. As for our solutions, under our Protiva brand Gemalto offers the complete solution for strong authentication, from devices and readers to applications and authentication servers. Examples include multifunction smart card credentials used for physical and network access control, one-time password (OTP) tokens, the Ezio optical reader for secure online banking and our suite of eBanking solutions with more than 20 million online banking customers worldwide. According to Frost & Sullivan, Gemalto is the market leader in chip-based corporate security solutions. We also provide our Coesys fulfillment and support services to these sectors as well. Our solutions provide the highest level of protection against fraud while being simple for IT departments to administer and very easy to use, ensuring maximum compliance with security protocols. More Mr. Sebastien Cano Senior Vice President Telecommunications Gemalto, Inc. www.Gemalto.com SecuritySolutionsWatch.com: Thank you for joining us today, Sebastien. Please give us an overview of your role at Gemalto and background. Sebastien Cano: Gemalto is the world leader in digital security. We are a B2B company with three business units that focus on Telecommunications, Financial institutions, and Government and Large Corporations. In Telecommunications, we provide operators with a vast range of solutions to address the increasingly complex mobile ecosystem that now serves nearly five billion subscribers worldwide. I manage our activity in that sector for Gemalto North America. Our customers are the wireless network operators, including all the Tier 1 operators in North America and many others. In my 16 years with Gemalto I have always concentrated on telecommunications. In my previous assignments, I ran our convergence solutions business group in France, and prior to that managed our operations in Brazil and Spain. Gemalto’s global culture and worldwide presence gave me the opportunity to develop a real international experience of the telecommunications industry. More Mr. Francois Lasnier Vice President and General Manager, Security Gemalto North America www.gemalto.com SecuritySolutionsWatch.com: Thank you for joining us today, Francois. Please give us an overview of your background and your role at Gemalto. Francois Lasnier: Gemalto’s digital security solutions target three major markets, Telecom, Security and Secure Transactions. I manage the Security business in North America, and our focus is identity security and data protection for the government and enterprise sectors. My history with Gemalto spans several years. Initially, I was in the banking sector within the product development team where I managed the first smart card implementation to use Visa’s Java-based Open Platform, now an industry standard. My early background was in program management, working on smart card-based electronic toll collection systems and RFID-based vehicle identification systems in Tokyo. I received my master’s degree in electrical engineering and computer science. More Mr. Neville Pattinson Vice President of Standards and Government Affairs Gemalto North America www.gemalto.com SecuritySolutionsWatch.com: Thank you for joining us today, Neville. Please give us an overview of your background and your role at Gemalto. Neville Pattinson: I currently lead the Government Programs activity within the Security business unit of Gemalto North America. In this role, I focus on government based e-documents and identity credentials. This focus has provided several opportunities to be an advisor to U.S. government policy makers, program managers and key technology partners providing products and services to the federal government. In addition to this role, I am the chairman of the Smart Card Alliance and chair of the Smart Card Alliance’s Identity Council; a founding member of the Secure ID Coalition and am currently serving a three year appointment to the Department of Homeland Security’s Data Protection and Integrity Advisory Committee. Any views expressed in this interview are not representative of the Smart Card Alliance or the Department of Homeland Security or the DHS DPIAC. More Mr. Jack Jania Vice President and General Manger Secure Transactions Business Unit Gemalto, Inc. www.gemalto.com SecuritySolutionsWatch.com: Thank you for joining us today, Jack. Please give us an overview of your background and your role at Gemalto. Jack Jania: We organize our business units around our three major markets, Telecom, Security and Secure Transactions. I head up secure transactions for Gemalto North America. The secure transactions team drives all business activity in the banking and credit/debit card sector, including both contactless payment and smart card-based bankcards now being deployed in Canada. Prior to my current role, I spent several years within the mobile telecom business unit at Gemalto, and was involved in the launch of 3G smart card technology and NFC mobile payment. My early background was in semiconductor component test engineering and system-level architecture. This allowed the opportunity to participate in the design and implementation of the high-speed information systems for the American Stock Exchange, the Chicago Board of Trade, the Chicago Options Exchange and other stock exchanges. My career started in the broadcast industry, and worked with leading broadcasters and events around the world. More