Microsoft Deploys Activcard Identity Management System

ActivCard Identity Technology Selected by Microsoft IT Security Group for Largest Deployment of New Corporate ID Badges

FREMONT, CA – September 23, 2002 – ActivCard® (NASDAQ: ACTI/NASDAQ Europe: ACTI), the leader in IDentity Management (IDM) software, today announced that the ActivCard Identity Management Systemâ„? (AIMS) has been adopted by Microsoft Corporation (Nasdaq: MSFT) for their employees and contractors. Microsoft® has deployed the solution – including a corporate, smart card-based identity (ID) badge – to more than 25,000 employees in this initial deployment phase.

As a component of its overall corporate security strategy, all Microsoft employees, contractors, and authorized users will carry the ID smart card for physical access to on-campus facilities and remote access to Microsoft’s corporate network. The AIMS solution met Microsoft’s requirements for secure issuance and distribution of smart cards and user credentials in a large-scale enterprise – and performed under the demands of Microsoft’s rapid deployment schedule.

“The ActivCard AIMS solution integrates smoothly into our current network infrastructure, leveraging the built-in authentication and digital certificate management capabilities of Windows .NET Server and Windows XP,” said Greg Wood, general manager, Microsoft Corporate IT Security. “We have chosen ActivCard as our digital identity management partner for smart cards.”

Much like the ActivCard solution adopted by the U.S. Department of Defense, the system enables Microsoft to achieve the highest possible return on investment while providing tightened corporate security and ease-of-use for badge holders.

“Network security and employee identity are critical issues for organizations today, and a high priority for IT managers and CIOs,” said Steve Humphreys, chairman and CEO of ActivCard. “Microsoft’s adoption of our AIMS solution is recognition of ActivCard’s leadership. Using their corporate access card, Microsoft employees are able to access company networks remotely with the ease of use of an ATM card and their IT managers can rely upon the strong authentication infrastructure that identifies users.”

This deployment is a major step in building upon a long-term partnership with Microsoft. ActivCard is committed to providing the performance, ease-of-use and cost effectiveness of Digital IDs in the Microsoft environment with technology that supports Active Directory® and leverages the emerging .NET architecture. The synergy of the two companies enables customers to use Microsoft Active Directory for identity management of large-scale user populations inside and outside corporate firewalls – with a lower total cost of ownership and the accelerated return on investment of consolidated physical and logical credentials. As Web Services expand, the need for security continues to grow. ActivCard is in a position to offer comprehensive digital identity solutions meeting Microsoft standards and Microsoft customer requirements.

About ActivCard Identity Management Systemâ„? (AIMS)

AIMS minimizes the time and costs associated with deploying, maintaining and supporting a digital identity infrastructure through a web-based smart card provisioning and management system. AIMS allows companies to easily issue and manage advanced, multi-application smart cards – as well as the credentials and applications that are stored on them such as PIN, SKI, PKI and biometric authentication and digital signatures. The solution works with the Microsoft campus’ primary identity management infrastructure components including Active Directory, database and PKI components. AIMS is a key component of the ActivCard Corporate Access Cardâ„? (CAC) solution, which allows companies to easily deploy unified systems that reduce costs, increase security and improve employee productivity. Leveraging the ActivCard solution deployed by the U.S. Department of Defense, the ActivCard CAC delivers proven digital identity management capabilities to corporate enterprises.

About ActivCard

ActivCard is the leader in IDentity Management (IDM) software. Our scalable IDM and strong authentication solutions are trusted by organizations – from enterprise to governments around the world. ActivCard IDM systems deliver maximum Return On Identityâ„? (ROI) through increased security, reduced cost, and user convenience. The modular product design allows our customers to add capabilities as required, preserving their investment.

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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