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HEADLINES

MDC PARTNERS INC - Oberthur and Metaca Announce Partnership to Deliver Smart Cards to Canadian Banks

Gemplus launches GemInstant PayPass and enhances U.S. production capability for contactless payment; Gemplus receives full certification from MasterCard International for its GemInstant PayPass solution

Government Licences and Secure ID's: A new approach to card security from Placard

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THE FOLLOWING ARE THE INDUSTRY NEWS STORIES

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MDC PARTNERS INC - Oberthur and Metaca Announce Partnership to Deliver Smart Cards to Canadian Banks

Leading secure card solution providers, offering clients innovative, industry-leading single source solutions for chip and traditional card applications. Metaca's growth in the card services market has come through the proactive analysis of client needs and the strategic acquisition and integration of businesses. The company has unique Disaster Recovery Plan (DRP) capabilities and coast-to-coast coverage through its facilities in Toronto andVancouver. Being Visa, MasterCard and American Express certified, Metaca serves not only the financial industry, but also the telecommunication, satellite, alternative payment, identification, gift, loyalty and government markets.

As a member of Secure Products International (SPI), Metaca is well aligned globally with other organizations specializing in the production of secure products. This provides us with access to the most innovative technologies as well as the financial stability to continually invest in our business. The benefit to our clients is best-of-class solutions, delivered cost effectively. One company delivering complete card program solutions. One source. Metaca.

Secure Products International (SPI) is the secure transaction products and services division of MDC Partners. For more information, visit www.metaca.com and www.spi-worldwide.com.

Gemplus launches GemInstant PayPass and enhances U.S. production capability for contactless payment; Gemplus receives full certification from MasterCard International for its GemInstant PayPass solution

(Luxembourg and Horsham, PA)

Gemplus International S.A., the world's leading provider of smart card solutions, today launched its GemInstant PayPass solution for contactless payment. The company also confirmed that it receivedfull certification from MasterCard International for GemInstant PayPass.

GemInstant PayPass leverages contactless technology to simplify payment for small value transactions in venues where speed is essential. It consists of a MasterCard payment card with a built-in chip and antenna that uses short range radio waves to allow users to simply tap their GemInstant PayPass smart cards on specially-equipped PayPass terminals to securely transmit account details.

Merchant and consumer interest in MasterCard PayPass in the U.S.continues to grow, with an increasing number of merchants and other commercial partners agreeing to accept the contactless payment program. They include McDonald's, Regal Entertainment Group movie theaters, CVS pharmacies, and 7-Eleven and Sheetz convenience stores, as well as several sporting arenas. Additionally, J.P. Morgan Chase & Co., one of the largest credit-card issuersin the U.S., has publicly announced plans to issue cards powered by MasterCard PayPass during 2005.

GemInstant PayPass achieved all of the MasterCard PayPass approval requirements on 30June,bringing to the banks a contactless solution compliant with the MasterCard PayPass specifications and testing requirements. The cardswill be produced at Gemplus' recently enhanced card manufacturing facility in Pennsylvania, U.S.starting in July 2005.

"We see huge growth opportunities in the contactless market worldwide. Banking, retail, transportation, and government sectors are all considering various contactless technologies because of the improved speed and efficiency at terminals and reduced maintenance costs," said Philippe Combes, Gemplus' Executive Vice-President Operations and Financial Services.

Ernie Berger, President of Gemplus North America, added, "Being among the first smart card providers to achieve full certification for MasterCard PayPass is a serious endorsement of the effort we've put into developing contactless solutions over the last decade."

Government Licences and Secure ID's: A new approach to card security from Placard

In the modern world proof and protection of our identity has become as important as securing our homes and property. With the advent of digital technology, identity theft, forgery and fraud are no longer the domain of sophisticated criminal organisations- individual operators are now able to alter or replicate many common personal identification mediums and in particular identity cards.

In addressing these concerns a new generation of security identification cards, using state of the art technology, systems and equipment has been developed in Australia as a result of a Research and Development project between Placard Pty Ltd, a high security Australian plastic card manufacturer and Securency Pty Ltd (a joint venture company of the Reserve Bank of Australia and supplier of the Guardian® polymer substrate used for Australian and many overseas banknotes)

As a consequence of the success of polymer banknotes in combating counterfeiting in many countries, Placard and Securency sought to combine their technical and production capabilities to enhance the security of plastic identity cards and address the key issues of card forgery and fraud.

After two years of development, a new plastic identity card has been perfected containing many of the security features found in polymer banknotes around the globe. Derived from the successful Guardian® polymer banknote substrate, SENTRII® substrate has been formulated to enable polymer's introduction into plastic card production for Government only applications.

The new SENTRII® card substrate presents a greater challenge to the forger and more “detection features” for authorities and the public relying on the integrity of the card. Replacing the standard white PVC core substrate traditionally used in ID card production, the new SENTRII® card substrate features a Securency polymer core substrate with a window and diffractive optical element (DOE) effect and can also contain many of the more complex security features found in our banknotes.