ActivCard and Authentic8 Announce Mutual Termination of Stock Purchase Agreement

Apr 10, 2001, 01:00 ET from ActivCard S.A.

    FREMONT, Calif. and MELBOURNE, Australia, April 10 /PRNewswire/ --
 ActivCard S.A. (Nasdaq: ACTI; Easdaq: ACTI) and Authentic8 International, Inc.
 announced today that, due to current market conditions, the two companies have
 agreed to terminate the Stock Purchase Agreement announced previously on
 February 18, 2001.
     "ActivCard will continue to explore existing and future strategic market
 opportunities with Authentic8 as we seek technology licensing and development
 alternatives," said ActivCard Chairman and CEO Jean-Gerard Galvez.
     Confirming that customers have found the companies' solutions
 complementary, Authentic8's Chairman Roger Allen added, "Authentic8 is
 continuing to experience strong customer demand for its Internet
 Authentication Service and security products having recently won multi-million
 dollar orders from two major telecommunications companies, supporting the next
 phase of the company's growth."
     As a result of this decision, ActivCard will take a one-time charge of
 approximately US$4.0 million in the first quarter 2001.  This charge
 represents cumulative costs incurred to effect the proposed Stock Purchase
 Agreement as well as break-up costs.
     ActivCard management reaffirmed its comfort with analysts' revenue
 expectations for the first quarter 2001, which will be reported on
 May 10, 2001.
 
     About ActivCard
     ActivCard, a leader in digital identity and electronic certification
 technology, delivers core components required to enable next generation
 e-Business communication and transactions.  The ActivCard technology suite
 offers the ease-of-use of an ATM transaction with a security level better than
 face-to-face meeting.  ActivCard solutions, in conjunction with the
 applications support for public key based data confidentiality and integrity,
 allow individuals and businesses to perform secure online transactions over
 the Internet.  Today, more than 2 million people use ActivCard products for
 secure Internet banking, Web access and remote access to corporate networks.
 ActivCard is headquartered in Fremont, California, with worldwide operations
 in France, Germany, Japan, Sweden, Singapore and United Kingdom.  For more
 information, please visit the company's website at www.activcard.com.
 
     About Authentic8
     Authentic8's IAS authenticates the digital identity of employees,
 customers and partners when they remotely access their organization's computer
 network.
 
     NOTE:  ActivCard is a registered trademark of ActivCard S.A. in the
 United States and in other countries.
     Authentic8 is a registered trademark of Authentic8 International, Inc. in
 the United States and in other countries.
 
     This press release contains forward-looking statements, which reflect
 management's best judgment based on factors currently known.  Such statements
 are subject to certain risks and uncertainties, which could cause actual
 results to differ materially from those in the statements included in this
 press release.  Readers are cautioned not to place undue reliance on these
 forward-looking statements, which speak only as of the date hereof.  ActivCard
 disclaims any intention or obligation to update or revise any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.
 
 

SOURCE ActivCard S.A.
    FREMONT, Calif. and MELBOURNE, Australia, April 10 /PRNewswire/ --
 ActivCard S.A. (Nasdaq: ACTI; Easdaq: ACTI) and Authentic8 International, Inc.
 announced today that, due to current market conditions, the two companies have
 agreed to terminate the Stock Purchase Agreement announced previously on
 February 18, 2001.
     "ActivCard will continue to explore existing and future strategic market
 opportunities with Authentic8 as we seek technology licensing and development
 alternatives," said ActivCard Chairman and CEO Jean-Gerard Galvez.
     Confirming that customers have found the companies' solutions
 complementary, Authentic8's Chairman Roger Allen added, "Authentic8 is
 continuing to experience strong customer demand for its Internet
 Authentication Service and security products having recently won multi-million
 dollar orders from two major telecommunications companies, supporting the next
 phase of the company's growth."
     As a result of this decision, ActivCard will take a one-time charge of
 approximately US$4.0 million in the first quarter 2001.  This charge
 represents cumulative costs incurred to effect the proposed Stock Purchase
 Agreement as well as break-up costs.
     ActivCard management reaffirmed its comfort with analysts' revenue
 expectations for the first quarter 2001, which will be reported on
 May 10, 2001.
 
     About ActivCard
     ActivCard, a leader in digital identity and electronic certification
 technology, delivers core components required to enable next generation
 e-Business communication and transactions.  The ActivCard technology suite
 offers the ease-of-use of an ATM transaction with a security level better than
 face-to-face meeting.  ActivCard solutions, in conjunction with the
 applications support for public key based data confidentiality and integrity,
 allow individuals and businesses to perform secure online transactions over
 the Internet.  Today, more than 2 million people use ActivCard products for
 secure Internet banking, Web access and remote access to corporate networks.
 ActivCard is headquartered in Fremont, California, with worldwide operations
 in France, Germany, Japan, Sweden, Singapore and United Kingdom.  For more
 information, please visit the company's website at www.activcard.com.
 
     About Authentic8
     Authentic8's IAS authenticates the digital identity of employees,
 customers and partners when they remotely access their organization's computer
 network.
 
     NOTE:  ActivCard is a registered trademark of ActivCard S.A. in the
 United States and in other countries.
     Authentic8 is a registered trademark of Authentic8 International, Inc. in
 the United States and in other countries.
 
     This press release contains forward-looking statements, which reflect
 management's best judgment based on factors currently known.  Such statements
 are subject to certain risks and uncertainties, which could cause actual
 results to differ materially from those in the statements included in this
 press release.  Readers are cautioned not to place undue reliance on these
 forward-looking statements, which speak only as of the date hereof.  ActivCard
 disclaims any intention or obligation to update or revise any forward-looking
 statements, whether as a result of new information, future events or
 otherwise.
 
 SOURCE  ActivCard S.A.