New Project Win

Advanced Smartcard Technologies plc
28 July 2006

             ADVANCED SMARTCARD TECHNOLOGIES MAKES FURTHER PROGRESS
                             IN ANTI-COUNTERFEITING
                                    PROJECT

Advanced Smartcard Technologies (RIC: SMRT/L), ("AST") the Scottish based
software group specialising in smartcard technology, through its wholly owned
subsidiary Ecebs Limited, is pleased to announce that it has signed an agreement
with ITI Scotland Ltd. to participate in a multi-million pound Research and
Development programme, that will drive the development of new technology to
provide an essential tool in tackling growing international counterfeiting
activity. This marks a significant milestone in the process by which the
advanced technological research and development so far undertaken will be
commercialized to develop products and services for the marketplace. .

The Participation Agreement signed with the ITI provides the basis whereby
companies with complementary skills and capabilities have the opportunity to
commercialise elements of the ITI R&D programme in Machine-readable Security
Tagging, a technology platform offering an end-to-end solution for brand
protection. Ecebs' advanced technology has been utilised within the R&D
programme to provide part of the core platform.

ITI Techmedia research has shown that counterfeiting is a multi-billion dollar
global industry with highly destructive effects. The level of counterfeit trade
is estimated to have reached US$700 billion worldwide and shows no sign of
decline. ITI Techmedia initiated the machine-readable security tagging R&D
programme to create a system solution for brand protection and has recruited
more than a dozen R&D providers to work on this complex multi-disciplinary
programme.

David Braddock, Managing Director of AST commented,

" Our contribution thus far has been very much on a technology level, on
defining and then designing core elements of the IT systems architecture that
should bring unique business benefits to the market. This has involved close
interaction with a core team with complementary skill sets - from physics and
chemistry, to computer hardware design to strategic marketing and business
process analysis. Now with the Participation Agreement in place, we can
concentrate on bringing an exciting solution to a market urgently requiring such
products."

                                     -ends-

Date: 28 July 2006
For further information contact:

Advanced Smartcard Technologies plc                       01355-268521
David Braddock, Managing Director
Stephen Naylor, Finance Director

SVS Securities plc                                        020 7638 5600
Ian Callaway
Peter Manfield

ARM Corporate Finance Limited                             020 7512 0191
Nick Harriss

cityPROFILE                                               020 7448 3244
Simon Courtenay




NOTES TO EDITORS - About Advanced Smartcard Technologies plc

Advanced Smartcard Technologies plc, through its wholly owned subsidiary Ecebs
Limited, is a profit making, software company operating in the dynamic and
expanding smartcard arena. SMRT listed on AIM in December 2005. The Company
provides smartcard technology to a wide range of user markets including
transport, ID, healthcare, finance and local and national government departments
and blue-chip companies.



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