Activcard Expands Global Presence

Sales Office Opened in South Africa to Extend Availability of ActivCard Identity Management Software and Solutions

SANDTON, SOUTH AFRICA – 3 September, 2002 — ActivCard® (NASDAQ: ACTI/NASDAQ Europe: ACTI), a leader in identity management (IDM) software and strong authentication solutions, today announced the opening of a sales office here to address the growing demand for digital identity solutions in the South African marketplace. The new office will provide on-site local support for South Africa-based businesses and will serve ActivCard’s international customers with operations here.

South Africa is currently experiencing rapid growth in smart card and token-based identity management and authentication solutions. Smart cards are used extensively in South Africa, notably for cashless payment systems.

ActivCard’s new office will be headed by Martin Smullen, an industry veteran in the field of biometrics-based fingerprint authentication technology. Richard Smullen, his son, has been named Operations Manager of ActivCard South Africa. ActivCard will draw on their expertise to deliver ActivCard IDM software solutions.

“ActivCard’s identity management solutions are currently being piloted for a range of secure e-business applications in a wide diversity of market segments,” said Martin Smullen, Executive Director, ActivCard South Africa. “By opening a sales office here, ActivCard’s corporate customers will benefit from quicker access to the full range of ActivCard solutions. Together with our local channel partners, including Dimension Data, we can better address new opportunities in the South African marketplace.”

Notes to editors:
ActivCard’s IDM software is the foundation for the US Department of Defense’s Common Access Card (CAC) program, which is the world’s largest multi-application smart card badging program. The CAC is a military ID badge that enables building and site access around the world, photo ID, healthcare privileges, and demographic and entitlement information.

It also secures communications and transactions via PKI keys and digital certificates that encrypt and decrypt email, digitally sign email, and enable user authentication for network access. The DoD has a mandate that all 4.3 million DoD active duty personnel worldwide will be issued the new consolidated ID badge by the end of 2003.

About ActivCard

ActivCard is a leader in identity management and strong authentication solutions. We give businesses and governments the confidence that people are who they say they are online. ActivCard has the unique ability to implement a complete end-to-end, open standards-based digital identity system. We are trusted by the leading names in network computing including Hewlett-Packard Company®, Sun Microsystems, Inc.®, and VeriSign, Inc.®, as well as the U.S. Department of Defense.

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with fluctuations in operating results, our history of losses, the concentration of our customer base, our reliance on strategic relationships, acquisitions and managing the Company’s future growth, and other risks identified in the Company’s periodic filings with the United States Securities and Exchange Commission, including but not limited to those appearing under the caption “Risk Factors” in the Company’s annual report on Form 20-F. Actual results, events and performance may differ materially. 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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