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Diversity in Smart Card Markets in the Americas Fuels Rapid Growth in Smart Card Alliance

9 November 2005

Membership of the Smart Card
Alliance, the not-for-profit, multi-industry association working to
stimulate the understanding and widespread application of smart card
technology, has grown by over 45 percent in the last year, with 54 new
organizations becoming members.

The Alliance's rapid growth highlights the strong growth that is predicted
for the smart card industry in the Americas. The Frost & Sullivan Americas
Smart Card Market Analysis report published in September predicts that the
smart card industry will grow rapidly in North America, at a 27.7 percent
compound annual rate over the next five years, from the 132.2 million cards
shipped in 2004. The report predicts even greater growth in Latin America,
a 59 percent compound annual growth rate over the next five years, from
136.4 million cards shipped in 2004.

"As the smart card industry grows, we are growing with it," said Randy
Vanderhoof, executive director of the Smart Card Alliance. "What is
particularly exciting about this growth is that we are pulling members from
new industries and technologies. This really demonstrates how widespread
the adoption of smart cards is becoming."

Fast growing categories of new members include organizations involved in
computer hardware and software, card technology, security products and
services, healthcare, financial services and transportation.

In mainstream computer products and services, large blue-chip organizations
that have joined the Alliance this year include Adobe Systems, Cisco
Systems Inc, Sony Electronics and Sun Microsystems. They join existing
computer products and systems integration members that include VeriSign,
Lockheed Martin, IBM, RSA Security, Northrop Grumman and Unisys.

Highlighted Links

The Smart Card Alliance

Card technology companies that provide secure chips, cards, operating
software and devices such as Texas Instruments, Sharp, Inside Contactless
and MULTOS have found value in the Alliance as the number of applications
for smart cards in the Americas has increased.

Security and identity solutions providers, such as Viisage, LEGIC
Identsystems, Digimarc Corporation, Identification Technology Partners,
Inc., HIRSCH Electronics, Tyco Software House, GE Security, CoreStreet, and
Lenel Systems, have joined with other security market leaders to work
together in Smart Card Alliance industry councils. Likewise in healthcare,
solutions providers Healthmeans, EMIDASI and Competech Smart Card Solutions
have joined.

Smart cards for payment is another growth sector in the Americas. The
United States is quickly becoming a leader in the adoption of contactless
smart chip technology for fast and secure retail payments. New members in
this sector include American Express, Chase Card Services, SMART System
Technologies, PayZy Corporation and Visa Canada, who join existing members
Visa USA, MasterCard International, Bank of America, First Data Corporation
and JCB. POS terminal manufacturers Ingenico and Keycorp are new members,
joining existing Alliance members VeriFone, Hypercom, ViVOtech and OTI.

Contactless payment is growing for transit as well. Major cities around
the United States are moving to contactless smart card-based fare
collection systems as they upgrade their payment infrastructure. New
members in transportation and parking include ACS Government Solutions,
Parcxmart Technologies, Massachusetts Bay Transportation Authority, TriMet,
the Southwest Ohio Regional Transit Authority and the Utah Transit
Authority.

In addition, the Smart Card Alliance expansion into Latin America has
resulted in the formation of a new Latin America chapter, led by founding
members Oberthur Card Systems, Rede Ponto Certo, Axalto, Visa
International, Daruma Orga, ASSA ABLOY ITG, Atmel, STMicroelectronics and
Fargo Electronics.

The Smart Card Alliance will be exhibiting at Cartes in Paris, November 15
- 17. Randy Vanderhoof will chair the E-Money conference session on
Wednesday morning.

A full list of Smart Card Alliance members can be found at
www.smartcardalliance.org.

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association
working to stimulate the understanding, adoption, use and widespread
application of smart card technology. Through specific projects such as
education programs, market research, advocacy, industry relations and open
forums, the Alliance keeps its members connected to industry leaders and
innovative thought. The Alliance is the single industry voice for smart
cards, leading industry discussion on the impact and value of smart cards
in the U.S. and Latin America. For more information, please visit
http://www.smartcardalliance.org.

Media Contact:
Deb Montner
Montner & Associates
203-226-9290
Email Contact
SOURCE: The Smart Card Alliance