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Creating a global leader in digital

security

2 June 2006

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GO day – 2 June 2006 4

Agenda

Transaction highlights

Combination benefits

Integration plan

Financial prospects

Conclusion

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Transaction highlights Merger of Equals of Axalto and Gemplus to create Gemalto, a world class leader in the

digital security market approximately €1.7 billion (US$2.2 billion(1)) in combined pro-forma 2005 revenues and €2.1 billion (US$2.7

billion (2)) in combined pro-forma market capitalisation

Combined entity in a strong position to capture industry growth opportunities andwithstand industry cycles

Enhanced ability to drive adoption of card-based solutions for new applications

Extended and complementary client base

Combination of intellectual capital and focus of R&D and Sales & Marketing resources

on new application development and superior customer service Substantial benefits expected for all stakeholders – customers, shareholders and

employees

Significant synergies expected, estimated to have a net impact on operating income ofapproximately €85 million (US$100 million) per annum on a fully phased basis in the

third year following closing Shared governance, shared and strengthened management team

In addition, Board authorised a share buy-back program of up to 10% of capital ofGemalto, to be effected post closing of public offer

(1) Using a $ / € exchange rate of 1.25 (average for 2005)

(2) Share price and exchange rate as of 31 May 2006

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Transaction highlights (continued)

Status of transaction

December 7th, 2005

January 31st, 2006

February 28th, 2006

March 7th, 2006

April 7th, 2006

May 19th, 2006

May 25th, 2006

June 2nd, 2006

Announcement of combination

Axalto extraordinary shareholder meeting

Gemplus extraordinary shareholder meeting

US anti-trust authorities approval

French foreign investment approval

European anti-trust authorities approval

Reiteration of Gemplus’ Board recommendation for thecombination

Distribution of reserves to Gemplus shareholders (€0.26 perGemplus share)

Contribution in kind of TPG’s and Quandt family entities’aggregate 43.4% holding in Gemplus to Axalto

Change of Axalto name to Gemalto / Axalto Boardrepopulation

Filing of public exchange offer on Gemplus by Gemalto

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Transaction highlights (continued)

Exchange ratio of 2 Gemalto shares for every 25 Gemplus shares Taking into account €0.26 per Gemplus share distribution of reserves

Same exchange ratio as exchange ratio at which TPG’s and Quandt family entities’contributions in kind are effected

Represents nil-premium combination on the basis of 30-day trailingaverage share price as of December 6th, 2005 (date precedingannouncement of combination)

Based on agreed exchange ratio, Axalto shareholders would own44.5% and Gemplus shareholders 55.5% of Gemalto, respectively(assuming 100% of Gemplus shareholders tender to public offer)

Transaction recommended by Gemplus Board of Directors Initial December recommendation reiterated

Filing of new share issuance prospectus with AFM done

2nd June 2006, filing of the offer with AMF

AMF visa expected mid-June

Offer to be open for 25 stock-exchange trading days

Board meeting on 19 May 2006 authorised share buy back of up to10% of the Gemalto issued share capital, to be effected post closing ofpublic offer

Transactionterms

Sharebuy-back

Tentativetimetable

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Agenda



Integration plan

Financial prospects

Conclusion

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Strategic rationale Opportunity to further accelerate SIM based solutions and enable

faster development and commercialisation of high end products (e.g.multimedia cards, mobile TV)

Combined R&D and S&M efforts are anticipated to provide strongerplatform to develop new markets and pursue high growth opportunities Identity, ePassport, Healthcare

IT and Corporate Security

Payments

Expected ability to drive card based solutions for new applications

Anticipated higher visibility to investors and capital markets

Global footprint to facilitate better client partnerships

Limited overlap at client level

Strengthened client-dedicated R&D efforts for customized solutions

Higher volumes and more efficient production and supply chain

Exchange of best practices / manufacturing process improvements

Opportunity for global manufacturing optimization and increase inflexibility

Improved

position tocaptureindustrygrowth

Significantexpectedsynergies

Customerbenefits

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Combination highlights

Pro-forma FY 2005 combined sales(1) Good customer fit

Complementary client base

Limited overlap in Telecom

Virtually no overlap in Financial

Services and Identity and Security

Total FY 2005 €1.7bn – ($2.2bn)

(1) Based on $ / € exchange rate of 1.25

Mobile

telecommunications

63%

POS

3%Identity and security8%

Financial services

21%

Prepaid phone

cards

5%

EMEA

53%

Asia20%

Americas27%

B y p r o d u c t l i n e

B y

g e o g r a p h y

Preparatory clean-roomanalysis of respective

client bases conductedsince announcementconfirms limited customer

overlap

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Expected synergies

Cost of Goods Sold expected efficiencies from streamlined supply chain

volume effect on purchasing

sharing of best practices in manufacturing process

Operating Expenses reduction of duplicate General & Administrative expenses

overhead rationalisation

Minimal anticipated impact on R&D and manufacturingresources as combined capacity is required to address

expected growth Ability to adapt cost base to different growth environments

Potential revenue impact limited given complementary customer bases

offset by superior customer support

Strong client support since combination announcement

Enhanced R&D capabilities, potentially acceleratinginnovation, customization and technology roadmap

Cost savings

Potentialrevenue impact

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Expected synergies (continued)

Key financials (€ million) Re-confirmation of initial net

synergies estimate of €85million(US$100million) (pre-tax) per annum

on a fully phased basis 5% of combined 2005 cost base

Close to 70% of combined 2005 pro formaoperating income

Full benefits expected to be realizedin Year 3

Robust synergy estimates Back-tested in different economic/industry

environments

Flexibility on levers to achieve synergies

67 64

85

Gemplus Op.

Income 2005

Axalto Op.

Income 2005

Synergies

Expected synergies confirmed by preparatory integration workconducted since announcement

Expected synergies confirmed by preparatory integration workconducted since announcement

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Agenda



Integration plan

Financial prospects

Conclusion

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Gemalto operational on day oneGemalto operational on day one

Integration execution plan Deal announcement

Executive management structure

Integration planning programme Main responsibilities allocated

Workstreams identified

1st line of management (121managers)

GO day Single brand

Joint sales team

Coordinated go-to-market strategy

Pooling of purchasing

Next level of managementannouncement (550 managers)

7 December 2005

December 2005 and January 2006

Started in January

4 May

2 June

Mid-June

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Gemalto governance

Gemalto Board of Directors

Alex Mandl, Executive Chairman

Olivier Piou, Chief Executive Officer Kent Atkinson

David Bonderman

Geoffrey Fink

Johannes Fritz

John Ormerod

Arthur van der Poel

Michel Soublin

John de Wit

Independent board memberto be jointly appointed

11 Board members

5 ex-Axalto

5 ex-Gemplus

1 independent to be jointly appointed

11 Board members

5 ex-Axalto 5 ex-Gemplus

1 independent to be jointly appointed

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Executive management structure

Alex Mandl Executive Chairman

Olivier Piou Chief Executive Officer

Ernie Berger Psdt – North America

Eric Claudel Psdt – Latin America

Jacques Seneca Psdt – Europe

Xavier Chanay Psdt – CIS, Middle-East,Africa

Teck Lee Tan Psdt – North Asia

Martin McCourt Psdt – South Asia

Frans Spaargaren EVP – Chief AdministrativeOfficer

Charles Desmartis EVP – Chief FinancialOfficer

Jean-Pierre Charlet EVP – General Counsel

& Company secretary Philippe Vallée EVP – Telecommunication

Product and R&D

Philippe Cambriel EVP – Banking andSecurity

Tommi Nordberg EVP – Identity and Gvnt

Claude Dahan EVP – SalesCoordination

Michel Canitrot EVP – Very LargeAccounts

Paul Beverly EVP – Marketing andComm.

Emmanuel Unguran EVP – ProductionCoordination

Jean-Francois Schreiber EVP – Strategy &Ventures

Christophe Pagezy EVP – M & A

Philippe Cabanettes EVP – HR

Executive management structure already operationalExecutive management structure already operational

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Synergies workstreamsSynergies workstreams

Business/process workstreamsBusiness/process workstreams

Structured integration program well under way

1. Product rationalisation

Telecoms

Banking

Identity

2. Manufacturing optimisation

3. Delivering Purchasing synergies

4. Minimising customer attrition

5. Headcount optimisation

6. Legal entity and tax optimisation7. Facilities optimisation

8. Information System synergies

9. R&D/IP Synergies

10. Growth projects

Go to market1. Common approach to customer, joint sales team

2. Operations under a single brand3. Teams integration, cultural alignment

Key x-functional business processes1. Bid to cash2. Product and platforms lifecycle3. Production and logistics4. Manufacturing resources management5. Continual Improvement

6. Offer customisation7. Strategy management8. Governance process9. Forecast and budget10. Supply Chain

Supporting processes1. Purchasing2. Information System

3. Legal4. Finance5. Security6. Sales co-ordination7. Very large accounts co-ordination8. Human Resources9. Communication10. Marketing

Integration Steering GroupIntegration Steering Group

Integration Programme OfficeIntegration Programme Office

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GO day

Immediate and long term initiatives

Quick wins

- purchasing economies

- interoperable productionand personalization

- overhead rationalization

Key initiatives

- customer centric & verylarge accounts programs

- product portfolio review

- new digital security

programs- evaluating optimizedmanufacturing processes

- review IT systems

Longer term

- growth through customerintimacy initiatives

- strategic partnerships withdigital security players

- review office locations- implement common ITsystems

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Agenda



Integration plan

Financial prospects

Conclusion

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Financial prospects As expected, difficult environment in Q1 which will continue in Q2

intense pressure on selling prices

unfavourable geographic mix in Mobile Communication

compounded by return to usual seasonal pattern

partial offset by strong activity in Public Sector

but which does not change Gemalto’s view on midterm industry growth

Gemplus expects ongoing revenue growth with further operating

margin improvements in Q2-06 and H2-06 Year-on-year top line and operating income growth in Q1

limited revenue growth in Telecom with strong volume growth offset bypressure on selling prices

strong growth in Financial Services and Identity and Security revenues

Industry

Axalto

Gemplus

Axalto expects significant improvement on revenue and operatingmargin for H2 more favourable regional revenue mix with stronger Mobile Communication

demand in Western Europe and Americas

continued strong volume growth SIM card mix improvement in emerging markets

growth in public sector

integration with Gemplus

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Agenda



Integration plan

Financial prospects

Conclusion

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Conclusion

Creation of a world class leader in digital security Ideally positioned to capture industry growth opportunities and drive innovation

Greater resilience to economic/industry cycles

High value creation potential Synergies confirmed at €85m on a fully phased basis

Multiple levers to adapt synergy model to environment

Difficult H1 industry environment with steep decline in averageselling prices in Mobile Telecom, recovery expected in H2-2006

Integration process well under way

Gemalto operational from day one Full review of key processes expected to be completed by end of Q3

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Creating a global leader in digital

security

2 June 2006

06-02-2006-tender-pres

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