Oberthur Card Systems Reports 2006 Q1 Sales

Smart card company reports best Q1 sales yet


Sales of Services and Solutions - EUR26.4M - are up 14.0% compared to Q1 2005. This segment, consisting mainly of personalization services but also licensing fees for EUR2M, has been boosted by a dynamic North American market.

Outlook:

Oberthur Card Systems' sales should increase during the full year 2006 and growth should accelerate from the coming months:

- Mobile Communications should become a strong engine for growth in the months to come. Due to the consolidation of the industry and its even more sustained efforts in the segment, Oberthur Card Systems is in a good position to gain market share in this area. In parallel, capitalizing on recent innovations in products and applications - GIGAntIC, AngelIC, Mobile TV - the company should benefit substantially from the willingness of European operators to move forward the digital convergence planned for the second half of the year.

- The Payment market, which has recently seen slightly lower levels of activity, should enter a new ramp-up phase with program launches in Europe and Asia. Building on its position as a personalization world leader with a strong position in Western Europe, Oberthur Card Systems continues to gain market share in this activity through new bureaus, partnerships and joint ventures throughout the world, most recently in Spain, Asia, Central America, Eastern Europe and the Middle East.

- In the "Identity & Security" segment, Oberthur Card Systems will continue to broaden its participation in an increasing number of projects across the five continents. In addition, the roll-out of major programs in North America and Europe should sustain growth this year.

In a still highly competitive and changing market, Oberthur Card Systems pursues its strategy for development, innovation and streamlining of industrial process to remain in the best position to leverage, in the mid-term, a favourable situation.

About Oberthur Card Systems

With sales of 500.8 million Euros in 2005, Oberthur Card Systems is one of the world's leading providers of card-based solutions, software and applications, including SIM and multi-application smart cards as well as services ranging from consulting to personalization.

Innovative products, security expertise and high quality services ensure Oberthur Card Systems' strong position in its main target markets:

- Payment & Services: accounting for 53% of 2005 revenue. Oberthur Card Systems is a world leader and the number one supplier of Visa and MasterCard payment cards

- Mobile Communications: accounting for 32% of 2005 revenue, mainly from open and interoperable solutions based on Java(TM) technology.

- Identity: Oberthur Card Systems holds a strong position in ID projects throughout the world

- Multimedia: Oberthur Card Systems enjoys a leading position in the Pay-TV market, with end-to-end expertise throughout the value chain - software development, manufacturing and personalization

- Transit: Oberthur Card Systems provides a microprocessor-based offer especially suited to the high-end market segments

Close to its customers, the company benefits from an industrial and commercial presence across all five continents. Listed on the Euronext Stock Exchange (ISIN: FR0000124133) since July 2000, Oberthur Card Systems is a subsidiary of the Francois-Charles Oberthur Group.