ActivCard Acquires ASPACE Solutions

ActivCard Corp. (Nasdaq: ACTI), which currently owns 49 percent of ASPACE Solutions Limited, today announced that it has acquired the remaining 51 percent equity interest
in the UK-based company. ASPACE provides a multi-channel authentication and
authorization solution to the banking industry. Under the terms of the
agreement, ActivCard made an initial payment of $9.7 million (pounds Sterling
5.0 million), payable 50 percent in ActivCard common stock and 50 percent in
cash. Additional payments of up to $9.7 million (pounds Sterling 5.0 million)
will be payable in the same proportion of stock and cash, on the achievement
of certain milestones.

"We are executing on our long term strategy with this acquisition," said
Ben C. Barnes, ActivCard Chief Executive Officer. "This positions us as a
leading provider of authentication and authorization solutions for banks. This
fast growing segment is part of the over $2 billion identity and access
management market that is estimated to grow about 10 percent annually."

Banks face a complex problem today: Millions of customers are interacting
with banks, through the web, phones, automated teller machines (ATMs),
branches, and are using different identification and authentication methods
for each. It has become increasingly difficult and costly for banks to manage
the multiple systems needed to positively identify customers and approve
transactions. Customers are required to authenticate themselves to prevent
fraudulent activity and identity theft; however, they have become frustrated
as they are forced to navigate through different security systems to access
their accounts and services.

The new set of ActivCard products, incorporating ASPACE's advanced
technology, will enable banks to authenticate customers and provide
authorization for banking services, delivering a combination of better
customer service and enhanced fraud protection. With ActivCard solutions,
banks can start with identification and authentication services and migrate to
a comprehensive authorization system that supports multiple channels. This
functionality is embedded in the 4TRESS solution, ASPACE's flagship product.

From a bank's perspective, the new ActivCard solution will positively
identify customers to the bank, whether they are accessing their accounts
through the Internet, via phone or ATMs. Once the customer is authenticated,
the system will manage authorizations and secure access to various services
such as checking accounts, credit cards, and home loans.

"This makes transactions simple to conduct for the customer, and less
costly for the banks to manage and protect. Additionally, the solution enables
banks to monitor and audit financial activity in compliance with national and
international government regulations, such as the Gramm-Leach-Bliley Act and
Basel II," continued Mr. Barnes. "Customers will ultimately have an easier and
more secure experience while giving them the same level of confidence as a
face-to-face interaction with their banker."

"We spent three years developing this first-of-a-kind solution in close
cooperation with major banks," said Steve Keohane, ASPACE Solutions Chief
Executive Officer. "Our 4TRESS software can be configured to match any banks'
business processes. It enables the financial organization to consolidate its
security architecture across all channels and lines of business to achieve a
consistent look and feel for users. We believe that this will drive costs
down dramatically," continued Keohane.

Over the last eight years, ActivCard has delivered secure online banking
solutions to financial institutions and currently has almost four million
users worldwide, in such institutions as Barclays Bank in the United Kingdom,
Credit Agricole in France, and First Republic Bank in the U.S. "With its
strong sales and marketing channels, ActivCard can provide worldwide reach to
ASPACE's business and technology solutions," added Mr. Barnes.

The statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties, including
risks associated with the integration of acquired companies, products and
technologies into our operations, our future operating results, changes in our
management team, changes in our business focus, cost reduction initiatives and
streamlining of our operations, our history of losses, the concentration of
our customer base, our reliance on strategic relationships, and other risks
identified in our periodic filings with the United States Securities and
Exchange Commission, including, but not limited to, those appearing under the
caption "Risk Factors" in our most recent Annual Report on Form 10-K and in
our Quarterly Reports on Form 10-Q. Copies of these filings are available from
ActivCard and on the SEC's website at http://www.sec.gov. Actual results, events and
performance may differ materially from our forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. ActivCard disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

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