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[February 14, 2006]

Alternative Technology to Distribute Axalto Network Authentication and Identity Solutions in North America

AUSTIN, Texas & ENGLEWOOD, Colo. --(Business Wire)-- Feb. 14, 2006 -- Axalto, the world's leading provider of microprocessor cards, has signed a distribution agreement with Alternative Technology, a top North American distributor for Value Added Resellers (VARs) in the network security market. Under the terms of the agreement, Alternative Technology will distribute Protiva(TM), Axalto's new two-factor authentication product suite, and Cryptoflex .NET, the only smart card powered by Microsoft's .NET(R) framework.

"We are excited about collaborating with Axalto and our VARs to launch their innovative Protiva one-time password and smart card product line, and to penetrate the Microsoft security market with Axalto's exclusive .NET smart card technology," said Bill Botti, president and chief operating officer of Alternative Technology. "We are choosing to work with Axalto because we know that we can rely on them to provide the best technologies and the best support."

The agreement strengthens Alternative Technology's network security portfolio, helping their resellers to better leverage what is unique in their customers. At the same time, it expands Axalto's ability to efficiently deliver strong, two-factor authentication solutions in the United States and Canada, including the U.S. government through Alternative Technology's participation in the GSA procurement schedule.

Protiva is a set of products that utilizes open standards and multifaceted interoperability to enable flexible end-to-end network security. With Protiva, users can establish a secure digital identity at home, at work or on the road with smart cards and smart card powered one-time password (OTP) and USB tokens. At the heart of each Protiva device is intelligent microprocessor card technology, which has proven security and robustness over three decades. The technology helps to prevent internal and external fraud, eases regulatory compliance for privacy and accountability, and defends against phishing attacks.

Axalto's Cryptoflex .NET-powered smart card is a secure, ultra-miniature personal computing technology that runs a small footprint version of the .NET framework. The product seamlessly provides customizable two-factor authentication and full cryptographic capabilities via the standard Microsoft .NET programming tools and interfaces.

Alternative Technology provides a thorough, solution-based approach to distribution through its understanding of the technologies, markets and competitors that give VARs an edge in building demand. Given this focus, Axalto's Protiva suite and Cryptoflex .NET smart cards are a natural fit because they protect the integrity of vital user information and enable personalized, secure and convenient interactions with the digital world.

"Axalto is pleased to partner with Alternative Technology to provide support for VARs who are working with Axalto's new Protiva product line and our innovative .NET smart cards," said Paul Beverly, president, Axalto Americas. "We look forward to strengthened growth and product adoption resulting from Alternative Technology's broad reach, expertise and support."

About Axalto

Axalto (EURONEXT:AXL) and (EURONEXT:NL0000400653) is the world's leading provider (Gartner 2005, Frost & Sullivan 2004) of microprocessor cards - the key to digital networks - and a major supplier of point-of-sale terminals. Its 4,500 employees, from over 60 nationalities, serve customers in more than 100 countries, with worldwide sales reaching over 3 billion smart cards to date. With 25 years of experience in smart card innovation, the company leads its industry in security technology and open systems. Axalto creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users. For more information, please visit www.axalto.com.

About Alternative Technology

Alternative Technology is the leading specialty distributor for Value Added Resellers who need products and services targeted at Thin-client/Server-based Computing, Edge Infrastructure, Security, and Wireless markets. Driving the widespread adoption of leading edge technologies by bridging the gaps between products and services to solve critical business problems, Alternative identifies business issues that are key to our markets and offer multi-vendor solutions that drive demand back through our reseller partners. Alternative Technology, headquartered in Englewood, Colorado, has offices in Ft. Lauderdale, Florida, Carlsbad, California and Mississauga, Canada. For more information, go to: www.AltTech.com, e-mail: sales@AltTech.com or call toll-free: 800.544.7674 (USA), or 866.240.9991 (Canada).

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