Gemalto Reports First Quarter 2012 Revenue

Revenue figures in this document are for ongoing operations1 and variations are at constant exchange rates except where if not noted. Revenue figures including contribution of assets held for sale and variations at historical rates are provided in the appendix of this document. All figures presented in this press release are unaudited.

Gemalto, the world leader in digital security today announced its revenue for the first quarter of 2012.

Olivier Piou, Chief Executive Officer, commented: "Gemalto delivers a record first quarter. Our extensive international presence enabled us to capture growth in the most dynamic regions. Our Mobile Communication offers are enjoying strong success in the market, Security continues its rapid expansion,

Better understanding of the current

For a better understanding of the current and future year-on-year evolution of the business, the Company provides revenue from "Ongoing operations" for both 2012 and 2011 reporting periods.

Compared to revenue reported on the first quarter of 2011, 2011 revenue from Ongoing operations reported in this publication was represented to as well exclude the contribution from assets classified as held for sale in 2012.

Revenue variations are at constant exchange rates, except where if not noted. The Company sells its products and services in a very large number of countries and is commonly remunerated in currencies other than the Euro. Fluctuations in these other currencies exchange rates against the Euro have a translation impact on the reported Euro value of the Company earnings. Comparisons at constant exchange rates aim at eliminating the effect of currency translation movements on the analysis of the Group revenue by translating prior year earnings at the same average exchange rate as applied in the current year.

The first quarter of 2012

In the first quarter of 2012, revenue from Ongoing operations was up +9% year-on-year at constant exchange rates. It was up +10% at historical exchange rates. Average exchange rates between the Euro and the

Product revenue grew by +12% extending the positive momentum initiated in the second part of 2011. Product mix continued to evolve positively, supported by adoption of new generations of products.

Software and Services revenue increased by +9%. Our fourth generation network and contactless services projects are showing good progress, in advance of commercial launches by mobile operators,

Secure Transactions revenue was up +6%, adjusting to the global market expansion rate afterwards the strong acceleration recorded last year.

The quarter

During the quarter, the momentum towards a future migration of the United States to EMV standards was reinforced by a second major payment network unveiling its roadmap for migration from magnetic stripe to EMV innovation.

The activity in the Patents segment is limited due to the ongoing litigation initiated by the Company in the United States. As a result nearly no revenue from patent licensing activities was recorded, like last year's first quarter.

Gemalto, ARM and Giesecke & Devrient announced the creation of a joint venture dedicated to delivering a secure software environment for services running on the growing range of connected devices. This notably targets user-interface security for smart-TVs, game consoles, tablets and smartphones.

The joint venture creation is subject to regulatory approval. Innovation developed by the joint venture will be based on established solutions from the founding companies. All three companies will contribute assets to the new venture, including patents, software, people, cash and capital equipment. ARM will own 40% of the joint venture, with Gemalto and Giesecke & Devrient each owning 30%.

For the full year 2012 Gemalto expects another year of expansion in revenue and profit from operations, with all main segments increasing their revenue and profit, limited revenue from Patents, and less seasonality in Mobile Communication, on its way towards its target of €300 million in profit from operations in 2013.

Second quarter revenue and first half 2012 revenues will be reported on Thursday August 30, 2012, previously the opening of Euronext Paris.

Gemalto is the world leader in digital security with 2011 annual earnings of €2 billion and more than 10,000 employees operating out of 74 offices and 14 Innovation & Development centers in 43 countries.

The heart of our rapidly evolving digital society

We are at the heart of our rapidly evolving digital society. Billions of people worldwide increasingly want the freedom to communicate, travel, shop, bank, entertain and work - anytime, everywhere - in ways that are convenient, enjoyable and secure. Gemalto delivers on their expanding needs for personal mobile services, payment security, identity protection, authenticated online services, cloud computing access, eHealthcare and eGovernment services, modern transportation solutions and machine-to-machine communication.

This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Gemalto.

This communication contains certain statements that are neither reported financial results nor other historical information and other statements concerning Gemalto. These statements include financial projections, and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, events, products and services and future performance. Forward-looking statements are as a rule identified by the words "expects", "anticipates", "believes", "intends", "estimates" and similar expressions. These and other information and statements contained in this communication constitute forward-looking statements for purposes of applicable securities laws. Though management of the Company believes that the expectations reflected in the forward-looking statements are reasonable, investors and security holders are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and as a rule beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by the forward-looking information and statements, and the Company cannot guarantee future results, levels of activity, performance or achievements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this communication include, however are not limited to: trends in wireless communication, payment and mobile commerce markets; the Company's ability to develop new innovation, the effects of competing technologies and the intense competition as a rule encountered in the Company's main markets; profitability of expansion strategies; challenges to or loss of intellectual property rights; ability to establish and maintain trust, reputation and strategic relationships in its major businesses; ability to develop and take advantage of new software and services; the effects of acquisitions and investments, including the Company's ability to integrate acquired businesses, achieve synergies and develop activities according to expectations; and changes in the global, political, economic, business, competitive, market and regulatory forces. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this communication speak only as of the date of this communication and the Company or any other person is in accordance with no duty, and do not undertake, to update any of the forward-looking statements afterwards this date to conform such statements to actual results, to reflect the occurrence of anticipated results or if not except as in other respects required by applicable law or regulations.

All variations in these appendices are comparing the revenue of the first quarter 2012 to the revenue of the first quarter 2011. For a better understanding of Gemalto's year-on-year business evolution, the revenue figures have been calculated for Ongoing operations, as described in the basis of preparation of this document, unless if not mentioned.

The assets held for sale comprise those that will be contributed to a joint venture pursuant to this agreement creation and other non-strategic assets currently being disposed, as so then as the assets of a Chinese joint venture whose shareholding restructuring was completed in 2011.

GemaltoInvestor RelationsGabriel Rangoni, +33(0) 6 1426 6956gabriel.rangoni@gemalto.comorCorporate CommunicationIsabelle Marand, +33(0) 6 1489 1817isabelle.marand@gemalto.com

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