ACTIVCARD LAUNCHES NEW VAR-BASED SMART VPN CAMPAIGN

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ActivCard's Virtual Private Network Solution Smart VPN Bundles an ActivPack Server with a USB Device and Digital Identity Software. The ActivCard Smart VPN is Offered through Both New and Existing Resellers

ACTIVCARD LAUNCHES NEW VAR-BASED "SMART VPN" CAMPAIGN

ActivCard's Virtual Private Network Solution Smart VPN Bundles an ActivPack Server with a USB Device and Digital Identity Software. The ActivCard Smart VPN is Offered through Both New and Existing Resellers

Staines, UK & Suresnes, France - October 16th, 2003 - ActivCard (NASDAQ: ACTI) a leading global provider of Secure Digital Identity and Authentication solutions for secure remote access, secure sign-on and digital ID cards, today announced a new promotion of its Smart VPN™ solution, for its network of certified ActivCard Value Added Distributors (VAD), Value Added Resellers (VAR), System Integrators (SI) and new Authorised Resellers.

The Smart VPN promotion, for a limited time, offers qualified Virtual Private Network managers a free trial use of the ActivCard Smart VPN solution to test strong

authentication on their current VPN-based remote access systems. The Smart VPN Solution is a combination of the latest versions of its ActivPack™ remote access solution, ActivCard Gold™ and ActivKey™ USB key to provide the most comprehensive authentication solution for VPNs on the market. Included in the Smart VPN Evaluation Kit is a 10-user evaluation license of ActivPack v4.5, one-user ActivCard Gold 2.3 client software evaluation license and an ActivKey USB Token. This Smart VPN promotional offer is available through certified ActivCard VADs, VARs and authorised resellers.

Aon Limited, a leading insurance broker, risk management and human resources consultant, has significantly strengthened its network security with the adoption of the ActivCard secure remote access Smart VPN solution. "The combination of ActivPack, ActivCard Gold software, and the ActivKey provides the comprehensive and future-proof security that enables us to validate the identity of employees for VPN access. The USB key form factor made it easy to deploy to a large number of users quickly. We have over 2000 laptop users in the UK. This also had the benefit of not requiring installation of a card reader and its smart card capability will allow us to add additional digital identity applications in the future," stated Gary Parkes, Aon Technology Refresh Director.

Businesses are rapidly embracing remote access VPNs to extend the reach of their enterprise network perimeters. Flexible remote access VPN services streamline business operations, improve employee productivity, reduce the cost of networking administration, and eliminate the high cost of leased lines and modem banks. As a result, and according to industry analyst group Forrester Research, IP-based VPNs are actually being used by 70 percent of all companies for up to 90 percent of their data communications needs.

Many VPNs are susceptible to intrusion because users are only required to provide static passwords that are easily hacked, guessed or simply re-used by unauthorised people. As a result, VPN managers are increasingly implementing strong, two factor authentication services, along with a USB key or a smart card, to transform their VPNs into "Smart VPNs" that go beyond the traditional "token approach" that legacy token vendors have been offering for the past few years.

"The objective of the ActivCard Smart VPN promotion is to produce leads for our channel partners—while optimising the sales cycle and the installation of strong authentication solutions for corporations," said Eric Tocatlian, ActivCard European Channel Sales Director. "We will be targeting all major VPNs including Cisco, NetScreen, Nortel Networks, and Check Point," added Tocatlian.

To learn about the ActivCard Smart VPN offering, please login to http://www.activcard.com/smartvpn http://www.activcard.com/smartvpn

About ActivCard

ActivCard, http://www.activcard.com , is a leading global provider of Secure Digital Identity and Authentication software for remote access, secure sign-on and digital ID card solutions. Our scalable IDM and strong authentication solutions are trusted by organisations – from enterprise to governments around the world. ActivCard solutions deliver maximum Return On Identity™ (ROI) through increased security, reduced cost, and user convenience. The modular product design allows our customers to add capabilities as required, preserving their investment.

ActivCard is a registered trademark and ActivCard Gold, Return on Identity, Smart VPN, ActivPack, and ActivKey are trademarks of ActivCard in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.

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CONTACTS:

ActivCard UK

Eric Tocatlian

European Channel Sales Director

Knyvett House

The Causeway

Staines Middx TW18 3BA

+44 (0) 1784 898 072

etocatlian@activcard.com

ActivCard Corporate        

Julie White                

Tel: +1 (510) 574 1708                

jwhite@activcard.com

UK Press Enquiries:

Tony Bovill

Consort PR Consultants Ltd.

Tel: 01344 626171

Fax: 01344 626612

tony@consortpr.co.uk

http://www.consortpr.co.uk

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Tony Bovill