Oberthur Technologies: Q3 2008 Sales

Sales at 225,2 MEUR, Further to the Integration of XPonCard on 1st May 2008,
Growth of 24,1% at Current Rates and 12,1% in the Same Perimeter at Constant
Rates, Benefiting From Growth in Sales of SIM Cards and Identity

PARIS, October 23 /PRNewswire-FirstCall/ -- Today Oberthur Technologies
reported third quarter 2008 sales of EUR225,2m, up +24,1% at current rates
and up +12,1% in organic growth at constant rates versus last year.
2008 2007 Var. Constant Var. Current
in MEUR Rate Rate

First Quarter 184.3 169.4 13.1% 8.8%
Second Quarter
OT 217.2 180.7 25.6% 20.2%
OT (excl. XponCard) 193.4 180.7 12.3% 7.0%
Third Quarter
OT 225.2 181.4 27.4% 24.1%
OT (excl. XponCard) 197.7 181.4 12.1% 8.9%

Total
OT 626.7 531.5 22.3% 17.9%
OT (excl. XponCard) 575.4 531.5 12.5% 8.2%

Card Systems(1) :
During the third quarter, the Card Systems activity, without the Identity
activity, which became a completely separate division on 1st July 2008,
actively posted sharp growth in sales: up 29,2% to EUR182,5 m or 34% at
constant rates. Evidently, this growth in the third quarter of 2008 is
partially due to the integration of XPonCard into Oberthur's perimeter.
At constant perimeter, sales rose EUR157,3 m, up 11,4% at current rates
and up 16% at constant rates. This performance is essentially due to the
sustained growth in Mobile with 137 million microprocessor cards delivered,
which represents a 38% increase compared to Q3 2007.
Mobile Communications:
Mobile sales reached EUR92,2m, a 48% increase at current rate.
Excluding XPonCard, Oberthur experienced a growth of 30% to EUR81m in
mobile sales. This growth was sustained by dynamic markets in the Asian
region and in the EMEA region outside of Europe. The volume in SIM cards
progressed by 47% in all regions, achieving sales of EUR75m.
Price pressure remains globally moderate, with a drop in the constant
exchange rate of 8% of average prices, explained essentially by the
geographic mix: delivery volumes in Asia accounted for 30% of SIM cards sold
versus 24% in Q3 2007. All regions gave good performances:

- Growth in the EMEA region essentially came from the emerging
regions.

- Growth in the Americas was contrasted. Sales continued to
rise in South America, especially in Brazil, while the dollar exchange
rate continued to penalise sales revenue in the USA.

- In Asia, volumes rose 83% versus Q3 2007, which compensated
the reduction in the average sales prices.

However, the scratch card activity fell back by 10% in comparison with Q3
2007, despite an increase in volumes of 24% over this period, with 115
million units delivered.
Payment(2)
With sales of EUR80,1m, the banking business grew 16,4% at current rates,
especially in the Scandinavian market which benefited from the integration of
XPonCard.
Excluding XPonCard, total revenues of EUR66,7m were posted, a drop of
3,1% at current rates, but progressing at 2,1% at constant rates, owing to
the negative impact of the UK pound and US dollar exchange rates. 30 million
microprocessor payment cards were sold during the quarter which represents an
increase of 20% over the period. Growth by geographic areas was contrasted:

- The EMEA region and in particular Europe, suffered the joint
effect of a drop in volumes, especially in UK, and in the average sales
price, with stability in the personalization services segment activity.
EMV migration is continuing to progress in Spain, Italy and Hungary.

- In the USA, the magnetic stripe card market is depressed,
affected by both the deterioration in economic conditions in the
banking sector and price pressure.

- In Asia, linked to a new steady activity, sales are showing
strong growth.

- Pay TV and others

The activity remains stable in comparison with Q3 2007.
Fiduciary and Cash Protection :
In the Fiduciary segment, the order book remains at a high level. Q3
sales, without the volumes of the passport products that were transferred to
the Identity division, reached EUR24,9m, up 10,7% versus Q3 2007. Annual
growth targets remain unchanged.
In the Cash Protection segment, Q3 2008 was negatively impacted by
postponement of anticipated renewals in France and Export rollouts. Q3 sales
came to EUR3,4m a decrease of 33% over the period.
Overall, Fiduciary and Cash Protection sales came to 28,3 MEUR, up 2,5%
versus Q3 2007.
Identity :
On 1st July 2008, the Group created a new division centralizing all its
activities in the Identity field that previously had been part of the Card
and Fiduciary divisions.
In Q3 2008, this activity attained sales of EUR14,8m, up 13,8% at current
exchange rate, confirming a steady growth rate, especially with the start of
sales of the Taiwanese electronic passports.
Economic results
As expected, the company maintained its gross margin level in Q3 2008.
Outlook
Card Systems anticipates continued growth in Q4 2008 with the seasonality
tendencies. The company remains nevertheless attentive to possible
deterioration in market conditions.
Fiduciary should maintain a good level of activity and Identity should
continue to develop. Cash Protection may be behind its objectives.
About Oberthur Technologies
With sales of EUR733.4 million in 2007, Oberthur Technologies is one of
the world leaders in the field of secure technologies. Innovation and high
quality services ensure Oberthur's strong positioning in its main target
markets:
Card Systems: one of the world's leading providers of security and
identification based on smart card technology for the mobile, payment,
identity, pay TV and transit markets, and associated services such as
personalization.
Fiduciary: The world's third largest private security printer,
specializing in the production and management of high security products such
as banknotes, checks and other secure documents, in more than 50 countries.
Identity: International participant in the fabrication and
personalization of secure identity documents, both traditional and
electronic, such as passports, identity cards, driving licenses, health cards
and associated services, for both the public and private sectors.
Oberthur Cash Protection: world leader in the emerging market of
equipment for smart cash transportation and ATM protection.
Close to its customers, Oberthur Technologies benefits from an industrial
and commercial presence across all five continents. Web site:
http://www.oberthur.com

ADDITIONAL INFORMATION

Exhibit

Breakdown of sales by activity and region

Oberthur Technologies Consolidated - Q3 2008 vs Q3 2007 by activity

EURm Q3 2008 Q3 2007 % change % change
2008 / 2008 /
2007 2007
at at
current perimeter
rates and
constant
rates
Cards - Mobile 92.2 62.4 47.8% 34.0%
Communications
Cards - 80.1 68.8 16.4% 2.1%
Payment
Cards - Pay TV 10.2 9.9 3.0% -0.6%
and others
Sub-total 182.5 141.2 29.2% 16.0%
Cards
Fiduciary 24.9 22.5 10.7% 10.7%
Identity 14.8 13.0 13.8% -3.8%
Cash 3.4 5.1 -33.3% -33.3%
Protection
Adjustments -0.4 -0.3
Total 225.2 181.4 24.1% 12.1%

Oberthur Technologies Consolidated - Q3 2008 vs Q3 2007 by region

EURm Q3 2008 Q3 2007 % Change 2008
/ 2007
at current
rates
EMEA 147.7 121.0 22.1%
Americas 52.5 48.5 8.4%
Asia 25.0 12.0 108.3%
Total 225.2 181.4 24.1%

Oberthur Technologies - Q3 2008 vs Q3 2007 Card Systems by product

EURm Q3 2008 Q3 2007 % Variation % Change
2008/ 2007 2008/2007
a tx at current
constant rates
Microprocessor 129.4 97.8 41.2% 32.3%
cards
Payment 37.3 31.6 22.9% 18.0%
Mobile 83.3 57.6 48.7% 44.6%
communications
PayTV 8.8 8.6 5.1% 2.3%
Others cards 18.6 17.0 9.9% 9.4%
Services & 34.5 26.4 33.8% 30.7%
Solutions
Total 182.5 141.2 33.5% 29.2%

Oberthur Technologies
Jean-Michel Guichot - CFO
Tel.: +33-1-47-64-64-08
jm.guichot@oberthur.com

Image 7
Caroline Simon-Phelip
Tel.: +33-1-53-70-74-65
E-mail: caroline.simon@image7.fr
Tiphaine Hecketsweiler
Tel.: +33-1-53-70-74-59
E-mail: thecketsweiler@image7.fr

(1) Identity division's sales are reported from hereafter separately
(2) Payment, loyalty & transit

SOURCE Oberthur Technologies

Oberthur Technologies: Jean-Michel Guichot - CFO, Tel.: +33-1-47-64-64-08,
jm.guichot@oberthur.com. Image 7: Caroline Simon-Phelip, Tel.:
+33-1-53-70-74-65, E-mail: caroline.simon@image7.fr, Tiphaine Hecketsweiler,
Tel.: +33-1-53-70-74-59, E-mail: thecketsweiler@image7.fr