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

FREMONT, Calif., Sept. 23 /PRNewswire-FirstCall/ –
ActivCard(R) (Nasdaq: ACTI; Nasdaq Europe: ACTI), the leader in IDentity
Management (IDM) software, today announced that the ActivCard Identity
Management System(TM) (AIMS) has been adopted by Microsoft Corporation
(Nasdaq: MSFT) for their employees and contractors. Microsoft(R) 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(R) 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 System(TM) (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 Card(TM) (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, http://www.activcard.com, 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 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, 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.