ActivCard Selected by Northrop Grumman IT to Provide Identity Management

For U.S. Common Access Card Program ActivCard Will Deliver New ActivCard Gold for CAC PKI 3.0 to the U.S. Army Set-D With Advanced Management Capabilities, Enabling Reduced Total Cost of Ownership

FREMONT, Calif., March 21 /PRNewswire-FirstCall/ — ActivCard(R) (Nasdaq: ACTI; Nasdaq Europe: ACTI), the leader in IDentity Management (IDM) software, today announced that it will be the primary identity management provider for Northrop Grumman Information Technology (IT) for the U.S. Army’s Common Access Card (CAC) program. A task order was awarded to Northrop Grumman IT to provide $9 million of smart card middleware for the CAC program.

With ActivCard Gold(TM) for CAC, Army personnel can use their multi-application smart ID badges — known as the Common Access Card — for cryptographic network logon to their computing platforms, applications and Web sites; to encrypt and digitally sign e-mail; and to extend public-key infrastructure (PKI) capabilities to access a host of military services, including VPN, remote access and benefits systems.

“ActivCard is proud to be selected by the U.S. Army Set-D and to extend its partnership with Northrop Grumman to bring enhanced security to the military. ActivCard solutions provide the military with confidence that only authorized personnel are accessing sensitive network data to conduct secure transactions online,” said Steven Humphreys, Chairman and CEO of ActivCard. “The U.S. Army will be the first to experience the next generation of ActivCard Gold, the world’s market-leading middleware for multi-application smart cards, and its new cost-reduction benefits for small to large scale deployments.”

ActivCard Gold for CAC PKI 3.0 Reduces Deployment, Management and Helpdesk Costs
With this Army award, ActivCard is launching the newest version of its premiere smart ID badge software solution, ActivCard Gold for CAC PKI 3.0. This new version addresses the advanced needs of large-scale middleware deployments:

— Organizations can automatically push ActivCard Gold software from a central IT distribution point to users’ computing devices
— Administrative costs are further lowered by “auto-update” capabilities for software enhancements, eliminating manual software upgrade processes
— User convenience is enhanced by new troubleshooting wizards — Computing systems applications now are automatically configured to use CAC-compliant digital certificates
— Administrators benefit from the remote diagnostics capability of ActivCard Gold for CAC to facilitate helpdesk management around the world from one or more central locations
— Customers gain from ActivCard Gold for CAC’s new modularity, which enables additional smart card-based services to be added to the middleware to maximize return on investment (ROI) by consolidating services on the CAC.

About ActivCard
ActivCard,, is the leader in IDentity Management (IDM) software for remote access, secure sign-on and digital ID card solutions. 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 Identity(TM) (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 as 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 most recent prospectus dated December 31, 2002. Actual results, events and performance may differ materially.

NOTE: ActivCard is a registered trademark and ActivCard Gold is the trademark of ActivCard in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.

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