The first smart cards are scheduled to be issued to a small group of users as early as the last quarter of 2004. Starting in January 2005, the majority of the payment cards issued by the Raiffeisen banks in South Tyrol will incorporate only a chip. The complete migration process will be concluded by the end of 2007. The framework agreement covers a volume of up to 400,000 cards.

EMV smart cards not only provide protection against fraudulent use, but can also offer a range of other payment-related applications. These include a digital signature, electronic purse, and loyalty functions. The Raiffeisenverband’s card will for instance incorporate the Todos eCode authentication solution for Internet banking and other online services. eCode is a pocket card reader that generates a one-time password in conjunction with the smart card. This solution offers maximum flexibility and security in online banking transactions: This is how it works. Users simply insert the card into the pocket reader and enter their PIN. The one-time password then appears on the device’s display and is used by the cardholder to prove his or her identity to the bank, allowing transactions such as credit transfers from the user’s account to be conducted.

“This new generation of cards based on EMV standards enable our customers to not only make payments with the highest possible level of security. The deciding factor for us was the fact that this product is state-of-the-art and thus the key to further innovative banking services in the future. Due to its wide-ranging expertise, Giesecke & Devrient is the ideal partner to assist Raiffeisenverband of South Tyrol in completing the task facing us of migrating our banking cards from magnetic stripe technology to chips,” says Helmut Stroblmair, senior department manager at Raiffeisenverband of South Tyrol, explaining the decision. “This deal will open up the opportunity for G&D to gain a stronger position on the Italian market. Besides increasing the level of security, the eCode solution by Todos on every card issued makes use of one of the diverse applications available on the smart card,” comments Michael Kuemmerle, head of G&D’s Payment Division. “We are pleased to be supporting Raiffeisenverband of South Tyrol as they roll out this innovation.” In addition to card production and personalization, G&D will also provide lettershop service, undertaking direct dispatch of the cards to Raiffeisenverband of South Tyrol’s customers.

About Giesecke & Devrient: Giesecke & Devrient (G&D), based in Munich, Germany, is an international technology group with subsidiaries and joint ventures throughout the world. In fiscal 2003, the group employed some 6,800 people and generated a revenue of €1.05 billion.

Founded in Leipzig in 1852, G&D began as a printer of securities, soon specializing in banknote production. The company has been developing solutions and complete systems for automatic currency processing since 1970. Today, G&D is also a technology leader in smart cards, and a solutions provider in the fields of telecommunications, electronic payments, transportation, health, ID, and Internet security. For more information, please visit our Web site at www.gi-de.com.