Identity Management Systems, Logical and Physical Access, Convergence

DUTCH MINISTRY DEPLOYS ACTIVCARD AUTHENTICATION TO POSITIVELY IDENTIFY EMPLOYEES FOR NETILLA REMOTE ACCESS SOLUTION

Tuesday, October 21, 2003

FREMONT, California and SOMERSET, New Jersey - October 21, 2003 - ActivCard(r) (NASDAQ: ACTI), a leading global provider of Secure Digital Identity and Authentication solutions, and Netilla Networks, a leading provider of SSL VPN and secure application access management solutions, today announced that the Netherlands Ministry of Transport, Public Works and Water Management has implemented their combined solution for secure remote access. Working with leading Dutch systems integrator Kahuna Networks, the Ministry selected the Netilla Security Platform SSL VPN solution, ActivCard two-factor authentication tokens and ActivPack(tm) AAA server software for positive identification of remote access users to reap the benefits of:


* Versatile end-user VPN access from any location or device via SSL encryption embedded in standard web browsers – to any client/server, web, or file sharing resource.

* Lower total cost of ownership of an SSL VPN solution protected by one-time-passwords that avoid traditional IT expenses of software installation, helpdesk services, password change policy enforcement, and leased token replacement.

* Increased security of strong authentication that eliminates vulnerabilities of static passwords as the weakest link in the chain of security - and the risks from reusable passwords that are easily hacked, guessed or stolen by unauthorized parties.

“From the beginning of our deployment, the enhanced security of ActivCard one-time-passwords and the Netilla SSL VPN solution have been simple to use,” stated Geert Zimmermann, a consultant for the Ministry’s IT department. “Through a single web-based user interface, our staff gains secure access to standard office applications and network resources - regardless of their location and without installing client software. There was only one restraint in the beginning and that was access to local drives during sessions. Netilla solved that problem for us. As far as IT administrators are concerned, they emphasize no longer having to manage the remote clients for the now more than 200 satisfied customers.”

Demands for responsive government and the productivity improvements made possible by mobile computing led to the Dutch Ministry’s initial decision to invest in a secure remote access solution. With over 2,500 employees and a breadth of responsibility for safeguarding Netherlands’ transportation and water supply infrastructure for over 16 million citizens, Ministry employees require access to networks and applications from any location. Netilla’s SSL VPN solution meets the need for streamlined connection to those services while working offsite, traveling on official matters, and for project

management during evenings and weekends. ActivCard’s ActivPack one-time-password authentication delivers the assurance that users are who they say they are prior to granting access to business-critical data via the VPN. Kahuna Network Solutions, a value-added reseller serving the Netherlands region, integrated and deployed the Ministry’s Netilla / ActivCard solution.

“Netilla provided a clear solution to address the Dutch Ministry’s requirements: to extend access to key business applications to Ministry employees and authorized contacts around the world with the simplicity of a Web browser, but with stringent security controls,” said Bryan Bain, vice president of marketing and business development at Netilla Networks. “Our collaboration with ActivCard employs strong two-factor authentication to ensure that only authorized users have access to this data.”

“Netilla’s support for ActivPack authentication is instrumental in enabling ‘trust-based’ access to information,” stated Ed MacBeth, senior vice president of worldwide channels and business alliances at ActivCard. “The Dutch Ministry’s deployment has affirmed that ActivCard perpetual license hardware tokens offer a clear benefit over costly leased tokens which expire.”

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