Implementing Global Platform Standards to Ensure Smart

Implementing ™ Global. Platform Standards to Ensure Smart Card Success Jim Harper Datacard Group August 2002

Topics • Smart Cards before Standards • Key Considerations for Issuing Multiapplication Smart Cards – Smart Card (Chip) Operating System – Smart Card Personalization Process – Smart Card Management System and Post Issuance Personalization Process – Smart Card Terminals/Devices • Implement GP Standards Control for , Reliabilityand Value Page 2

The “Traditional” Smart Card Industry NEW LOTSA CREDIT LOTSA CREDIT Print & Laminate (Sheets) Standards. Prop. “O/S” based O/S Prop. Apps Silicon /Chip Die Cut Mill Proprietary Standards-based Personalization Application LOTSA CREDIT 1234 5678 9012 3456 Patty Doe – Exp 13/999 Embed Initialize Personalize Standards-based Card Management LOTSA CREDIT 1234 5678 9012 3456 Patty Doe – Exp 13/999 Deliver Use Page 3 Post Issuance Update

Before Standards • Single application, proprietary smart cards (operating systems) – Lack of interoperability • increased time to market • costs to change cards/applications – Consumer: single use, no choice, lessening card value over time – No cross-marketing or “pull” from other applications on card – Proprietary “issuance” systems Page 4

Where Standards Matter 1. Smart Card (Chip) Operating System 2. Smart Card Personalization Process 3. Smart Card Management System Interface to “Bureau” Environments 4. Smart Card Terminals/Devices Page 5

Where Standards Matter “Standard” Development --- “Standard” Development 2 Standards-based Data Generation and Card Personalization Process (using GP Profiles and Scripts) Smart Card Management System 2 3 Standards-based SCMS to “Bureau” Interface VPN Loading and Personalization Process Fully Automated Processes! 1 --- Standards-based Chip Application to Chip Operating System Interface “Standard” Development Personalization System(s) Chip Applet(s) “Standard” I/F Chip O/S Smart cards to be used Card Usage • ATMs • POSs • Home PCs • Kiosks • Mobile Devices Delivered Card 4 Standards-based Terminal to Terminal Application Interface --- Chip Data Generation Process “Standard” Development Page 6

Key Consideration #1: Smart Card Operating System • Standard interface between chip operating system and chip “applets” – “Write Once/Run Anywhere” • Common approach to loading, deleting and changing applications on cards • Standard security scheme • Allows for “standard” personalization and post-issuance personalization processes to be used Page 7

Key Consideration #2: Smart Card Personalization Process • New “challenges” – – – Data generation (“ disintermediate) ” Data encryption Key management Application loading Card personalization Card life cycle management • Global. Platformresponse… – A “script-driven” data generation and personalization process – Simplifies the updating of single and multiapplication smart cards – Moves responsibility to application developer Page 8

Key Consideration #3: Smart Card Management System • Standards-based interface between SCMS and existing issuance/bureau environments – Independent of personalization hardware • Card activity must be tracked and managed with greatprecision • You must have confidence that a card’s suite of applications and contents (data) can be re-created • Simplify post-issuance personalization and reissuance (using Profiles and Scripting) • SCMS becomes apowerfulmarketing tool Page 9

Key Consideration #4: Smart Card Terminals/Devices • Standards-based interface between a terminal and it’s applications • Common approach to adding, deleting and changing applications on a terminal device/reader • Well defined interface for terminal application development and testing • Standards-based management interface Page 10

Implement. Global. Platform Standards for… Control • GP standards enables issuers to quickly capitalize on the power and promise of new technology • GP standards allow issuers to maintain control of their suppliers and supplies • Interoperability Page 11

Implement Global. Platform Standards for… Reliability • Standard interfaces and processes simplify development and testing • High quality • Vendors held accountable • Datacard has a wide variety of GPcompliant systems in place today, from desktop to high volume central issuance and smart card management systems Page 12

Implement Global. Platform Standards for… Value • GP systems can exchange data with other systems that use GP methods and specifications – Interoperability – Vendor and hardware independence • Costs can be reduced, reuse is higher, and testing can be handled in the same way (using GP scripts/profiles) Page 13

Datacard’s commitment to ™ Global. Platform standards Global. Platform. Board Committee System Committee Jerry Johnson, Datacard President & CEO Marketing Committee Planning Committee Brendan Jones Bill Reding Bob Beer, Chairperson Lorna Williamson Stuart Miller Pete Thorsen Chris Lomax Christophe Biehlmann Page 14

Datacard’s contributions to Global. Platformefforts • Development of new Profiles and Scripts – XML data with Java Script • Interface Specifications – SCMS to Bureau Environment • Card Specifications – Open Kernel (OCAPI) Page 15

Datacard and Smart Cards • Datacard solutions personalize more than 90% of the worlds financial cards (7 MM every day, 2. 5 B annually) • Datacard has nearly 1000 high volume personalization systems installed worldwide • Experts in “chip” consulting, EMV migration, and systems integration • Only vendor with true production level Smart Card Management Systems in operation ™ • Watch for Datacard MAXSYS and Syntera – Coming Soon! Page 16

Datacard Smart Card. MAP™ Architecture PRODUCTION ENVIRONMENT SOFTWARE AND SOLUTIONS ENVIRONMENT CARD PLATFORM ENVIRONMENT (Multi-application Architecture for Personalization) Global. Platform™/Java™ MULTOS™ Smart Card Personalization Manager (SCPM™) and P 3™ Low Volume Issuance Smart Card Management System (Affina™) 9000/7000/500 Proprietary Shared Cryptographic Resources and Certificate Authorities Maxsys Page 17

Datacard Smart Card. MAP™ Architecture PRODUCTION ENVIRONMENT SOFTWARE AND SOLUTIONS ENVIRONMENT CARD PLATFORM ENVIRONMENT (Multi-application Architecture for Personalization) Global. Platform™/Java™ • Standard MULTOS™ • Open • Customizable • Modular • Flexible • Scalable Smart Card Personalization Manager (SCPM™) and P 3™ Smart Card Management System (Affina™) Proprietary Shared Cryptographic Resources and Certificate Authorities • Full Range • Low Volume Investment Protection 9000/7000/500 Maxsys Issuance • Future Proof Page 18

Summary • Choose your smart card solution partner carefully – Your partnerand solutions should “future proof” your investments (i. e. , flexible, scalable, extensible) • Request GP standards in your: – Cards – Personalization Systems (Processes) – Smart Card Management System – Terminals • Enjoy… – Control – Reliability – Value Page 19

For More Information… White Paperson www. datacard. com: ™ ü “Implementing Global. Platform Standards to Ensure Smart Card Success” ü “The Transition from Magnetic Stripe to EMV Chip (Smart) Cards” ü “The Transition to Multi-application Smart Cards with Post Issuance Personalization Capabilities” ™ ü “Datacard MAP Smart Card Architecture” Page 20

For More Information… Brochures on www. datacard. com: ü Smart Card Issuance and Management ü Datacard Smart Card Solutions ü Datacard Smart Card Infrastructure ü Datacard Smart Card Personalization Manager (SCPM) ü Datacard Desktop Smart Card Issuance Solutions ü Datacard Smart Card Consulting Services Page 21

For More Information… Presentation www. datacard. com: on ü “Datacard products which implement ™ Global. Platform methods” Page 22

Thank You! Jim Harper Director, Smart Card Solutions Marketing Datacard Group jim_harper@ datacard. com Office 952 -988 -1179 Mobile (1) 612 -229 -1179 Page 23

Additional Slides Page 24

How Datacard’s Smart Card Solutions Relate to Each Other P 3 Affina Card Life Cycle Management Generate Chip Data Process (Fully Automated Operation) Card Data File (from host) (Card Data Warehouse) Data File with Chip Data SCPM SDK CSM/ Syntera Smart Card Loading and Personalization Development and Test Systems Call Center Customer Support Marketing New Card Products Store Issuance Data Issue, Re-issue Cards Central Smart Card Issuance Internet or VPN Download new apps and update existing apps over the internet or other secure “channels” Gen 2 E smart card module Move perso apps to production after fully tested Test the loading and personalization of the new chip applets Smart Card Personalization Manager Aptura ADK Move chip applets to production after fully tested Smart Card Applet Developers Kit Aptura (Java/GP cards) Move cards to production after fully tested High Speed Smart Card Issuance Low Volume Smart Card Issuance Deliver • Home PCs • Kiosks • Mobile Handsets Several card delivery solutions are available from Datacard. Ask your sales rep. for more info. Page 25

Datacard Smart Card Personalization Systems Affina Card Life Cycle Management System Dev. & Test ID Works with SCPM* DCL 3000 X X Custom X 3 7 14 8 100+ X X X X X 450 500 X X X 1 1 1 X X X Magna IC-IV X X Cards Pgmmed Simult. 1 1 1 Embossing Graphics Printing 9000 X Select SCPM* Dev. & Test X X 150 i 280/295 X X Laser 7000 X Inkjet MAXSYS X X Color Printing/Photo X X X Mag Stripe X X X Contactless SC X X X X X P 3 Desktop P 3 Advance P 3 Server Aptura** SCPM* - supports loading and personalization of Multos, Java, Open Platform, TIBC, VSDC, M/Chip, Mondex, UKIS and other cards. Many proprietary single application smart cards also supported. SCPM also has an SDK for custom application development of industry-specific cards (e. g. , for Transit, Health, Telecom, Government, other). Users can migrate from one Datacard hardware system above to another and the SCPM loading and personalization process and applications remain unchanged. Page 26 Aptura** - Datacard’s industry standard Java Card/Global. Platform Card - portable Java operating system.