Oberthur Card Systems' Innovative VersaFOB(TM) Certified as an Approved MasterCard(R) PayPass(TM) 3D Fob

LOS ANGELES--(BUSINESS WIRE)--The smallest-ever card-based contactless payment fob, called VersaFOB, was certified by MasterCard Worldwide as an approved PayPass product, Oberthur Card Systems announced today. This new contactless payment form factor is just 28.5 mm by 23.6 mm (1.125” x 0.93”) in size. The sub-card is snapped out of a full size card at the end of the production process and then inserted into a key-chain casing.

“Regardless of the final shape of the VersaFOB, it is based on a regular-sized card body and can be personalized and mass produced using industry standard practices. This enables Oberthur Card Systems to manage production costs and lower the barriers to entry from a cost perspective for our banking clients.”

“Until now, most contactless payment fobs have required custom equipment and unique processes to produce,” said Philippe Tartavull, president of Oberthur Card Systems of America. “Regardless of the final shape of the VersaFOB, it is based on a regular-sized card body and can be personalized and mass produced using industry standard practices. This enables Oberthur Card Systems to manage production costs and lower the barriers to entry from a cost perspective for our banking clients.”

Since the VersaFOB casings do not contain any of the electronics, they can be inexpensively customized to allow issuers to differentiate their fobs from competitors’ products. This specific antenna was designed extremely small so it could easily be used in larger VersaFOBs – either larger sub-cards or larger casings.

Consumers are already embracing contactless payments with statistics showing that fobs have quickly become one of the top options for shoppers. Merchants also cut their checkout time since cardholders don’t have to pull the card out of their wallets. “Having the payment device on a keychain is the ultimate in speed and convenience for consumers and merchants,” Tartavull said.

Oberthur Card Systems’ VersaFOB has several advantages over competing products:

The sub-card is secure inside the casing, giving it a robust connection to the keychain and minimizing instances of breakage and loss;
Three-dimensional devices cannot be manufactured or personalized using traditional equipment and processes, making them more expensive to produce and slowing time to market.

“MasterCard has worked closely with Oberthur Card Systems to create an exclusive solution that lets our customers develop non-card devices with minimized incremental costs,” said Richard Fletcher, Group Head, Mobile/Wireless Center of Excellence, MasterCard Worldwide. “Issuers now have the 'best of both worlds.' They can use their traditional card-based manufacturing and issuance systems to bring new three dimensional cardholder devices to market.”

VersaFOB is patented, and Oberthur Card Systems has plans to license the manufacturing and personalization of VersaFOB products to additional card manufacturers and commercial personalization bureaus.

During the first half of 2006, Oberthur Card Systems shipped several million contactless cards and is uniquely positioned to lead the market with its end-to-end offering that includes product development, manufacturing, personalization and fulfillment.

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. A world-leading supplier of Visa and MasterCard payment cards
Mobile Communications: accounting for 32% of 2005 revenue, mainly from open and interoperable solutions based on Java™ 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 François-Charles Oberthur Group.

For more information, visit www.oberthurcs.com.