Re Gemalto Partnership in US

Intercede Group PLC
27 November 2006

27 November 2006



                              INTERCEDE GROUP plc
                         ('Intercede' or 'the Company')


                 FURTHER RE PARTNERSHIP WITH GEMALTO IN THE US



Intercede notes today's announcement by Gemalto that the highest ranking agency
within the US Executive Branch of government has chosen Gemalto to provide card
management services, including two-factor authentication technology, in
compliance with the Homeland Security Presidential Directive 12 (HSPD-12).  This
follows Intercede's announcement on 16 November 2006 that its proprietary MyID
technology had been selected for this particular project.



The full text of Gemalto's announcement is set out below.



Highest Ranking Agency within U.S. Executive Branch Selects Gemalto to Provide
Secure Access Solution



Amsterdam, Netherlands and Arlington, VA, November 27, 2006 - Gemalto (Euronext
NL 0000400653 GTO), a world leader in digital security, today announces that the
highest ranking agency within the U.S. Executive Branch of Government has chosen
Gemalto to provide card management services, including two-factor authentication
technology, in compliance with the Homeland Security Presidential Directive 12
(HSPD-12).



'As a single provider of FIPS 201 compliant digital security solutions -
devices, applets,middleware and card management services - Gemalto is committed
to delivering a platformfor secure access and security solutions to the federal
government,' said Ernie Berger, president of Gemalto North America. 'Our
solution underwent rigorous and thorough design, evaluation and testing and we
are pleased that it was selected within such an influential agency in the U.S.
Executive Branch.'



Gemalto has long been a major provider of strong authentication devices to the
U.S. government. More than 12 million microprocessor-based smart cards are in
use today by several agencies, including the Department of Defense, which has
deployed 11 million Common Access Cards (CAC) supplied by Gemalto.



Under this contract, the comprehensive solution includes deployment and use of
personalized smart ID credentials for secure access to information systems and
federal buildings. In addition, Gemalto provides technical advice and
integration and delivery services. Intercede,a worldwide technology leader in
the field of smart card management solutions, is providing the card management
system within Gemalto's SafesITeTM Government solution.



'This contract is of pivotal importance within the Federal identity market
place. We are delighted to team with Gemalto to provide a fully operational
deployment,' commented Richard Parris, chairman and chief executive of
Intercede. 'Along with our partner, Intercede is committed to making HSPD-12 a
success across all U.S. Federal Agencies.'



About HSPD-12 and FIPS 201:

Homeland Security Presidential Directive 12 (HSPD-12) mandates that all U.S.
federal agencies begin to issue their employees and subcontractors Personal
Identity Verification (PIV) II cards. Standards to comply with the mandate have
been defined by the National Institute of Standards and Technology (NIST) in its
publication Federal Information Processing Standards (FIPS) 201, Personal
Identity Verification (PIV) of Federal Employees and Contractors.





About the SafesITeTM Government Platform

Under the agreement, Gemalto will deploy its Federal FIPS 201 compliant SafesITe
Government

Platform. The comprehensive solution includes everything needed to successfully
deploy and use

personalized smart ID credentials for secure access to information systems and
federal buildings, as mandated by HSPD-12. The system consists of the following
components, all approved by the GSA:

• FIPS 201 72K Dual Interface Smart ID badges and applet for physical and IT
access

• SafesITe FIPS 201 client API middleware

• FIPS 201 Card Management System (CMS)

• Consulting, design and implementation services

• Customer support



About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is a leader in digital security with pro
forma 2005 annual revenues of $2.2 billion, operations in 120 countries and
11,000 employees including 1,500 R&D engineers. The company's solutions make
personal digital interactions secure and easy in a world where everything of
value -from money to identities- is represented as information communicated over
networks. Gemalto thrives on creating and deploying secure platforms, portable
and secure forms of software in highly personal objects like smart cards, SIMs,
e-passports, readers and tokens. More than a billion people worldwide use the
company's products and services for telecommunications, banking, e-government,
identity management, multimedia digital rights management, IT security and other
applications. Gemalto was formed in June 2006 by the combination of Axalto and
Gemplus International S.A. For more information please visit www.gemalto.com.



ENDS

About HSPD-12
HSPD-12 is one of the most important and high profile security directives of
recent years. It required, firstly, the creation of an official federal standard
(FIPS-201) for Personal Identity Verification (PIV), which would prescribe
technologies and processes for the effective vetting and access control of all
federal employees and contractors. The second requirement of HSPD-12 was for
every US Federal Agency to have implemented a PIV solution by October 27, 2006,
with all employees and contractors required to have a personal FIPS-201
compliant, smart card based, PIV identity card one year later. Each of these
cards will be issued and managed using a management system such as MyID.

All HSPD-12 solutions must by mandate only incorporate products that have been
exhaustively tested against by the US General Services Administration (GSA), and
included in the GSA's Approved Product List for PIV products. Intercede
announced on 4 October 2006 that it had become the first product in its category
to achieve this coveted status.

It is estimated that almost 8 million identity cards will be issued under this
programme. Industry analysts Stanford Group estimate the total value of the
programme to be worth approximately US$1.3 billion.

About Intercede
Intercede Group plc is a leading developer and supplier of smart card and
identity management software listed on the London Stock Exchange (IGP LN)
(IGP.L). The Group's MyID software manages the secure registration, issuance and
lifecycle of digital identities for a wide range of uses. This requires the
integration of multiple technologies and products from many different vendors,
including smart cards, biometrics, digital certificates and Open Platform
applets.

Intercede works with a number of market leading OEM, re-seller and technology
partners that supply MyID technology including: Athena Smartcard Solutions,
Gemalto, RSA Security, SafeNet, Thales, VeriSign and a variety of systems
integrators and other security product and service providers.

Intercede and MyID are registered trademarks or trademarks in the UK, US and/or
other countries. For more information visit http://www.intercede.com

ENQUIRIES


Intercede Group plc                                       Tel.      [phone]
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director

Pelham Public Relations
Archie Berens                                             Tel.      [phone]
Kate Catchpole                                            Tel.      [phone]






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