Gemplus Expands China Operations With the New Plant in Tianjin

Gemplus International S.A. (Euronext: LU0121706294 - GEM and NASDAQ: GEMP), the world's leading provider of smart card solutions, today announces the opening of Gemplus' new plant in Tianjin, which will employ the advanced Gemplus Production System to provide smart card solutions to both the domestic and global market. With expanded facilities, Gemplus is better able to stay ahead of market demand, helping telecom operators in China to develop greater value-added services for their customers.

Tianjin Gemplus, a joint venture between Gemplus and Tian Jin Zhong Tian Telecommunication Co., Ltd., a subsidiary of China Putian Group, one of China's leading providers of telecom smart cards, made the decision to build the new plant based on market trends and the success of its current operations. The new plant, which covers an area of approximately 50,000 m2, will primarily produce smart cards for GSM & CDMA cell phones, fixed phones, PHS phones and, in the near future, high-end 3G cell phones. With the addition of its new plant, Tianjin Gemplus has established a supply chain that includes module production, card printing, packaging, encrypting and other key processes of smart card manufacturing. As of October 2004, Tianjin Gemplus has already produced over 400 million smart cards.

To celebrate the opening of Tianjin Gemplus' new plant, Mr. Alex Mandl, CEO of Gemplus, together with Gemplus senior executives and officials of the Tianjin Government, traveled to Tianjin to attend the ribbon-cutting ceremony.

Mr. Wu Yu Shu, President of Tianjin Zhong Tian Telecommunication, China Putian Group, said: "We are very pleased that Gemplus considers the China market a top priority and we believe that Gemplus will achieve long-term success here. Our competitive advantages in information systems and terminals, and other key information technologies, combined with Gemplus' vast experience in the smart card industry, will greatly benefit our customers as market competition intensifies."

Mr. Alex Mandl, CEO of Gemplus, said: "Our new Tianjin plant is critical to continued success in Asia Pacific and globally. The new and expanded capabilities it provides means that we can better serve our customers in China and around the world. Gemplus will closely cooperate with our Chinese partners and share with Chinese customers the benefits of Gemplus solutions."