1. Business Models and Technology Advances in Dual Interface and Multi Technology Cards ICMA – EXPO 2005 Miami, 16th – 19th October Presented by: Thies Janczek

2. COCASO1 October, 17th 2005 ICMA Expo, Miami Content Introduction Business Cases for Dual Interface Cards Banking Application ID Application Technology Advances DIC Dual Interface Cards Multi Technology Cards Driving factors Summary

3. COCASO2 October, 17th 2005 ICMA Expo, Miami Introduction Smart cards are developing to increasing functionality Increasing Employment of Dual Interface Cards Dedicated Contactless and Contact Usage Integration of Electrical Functional Components Battery, Display, Solar Power Unit, Switch, Sensors (e.g. Biometric) etc. Project driven Customizing, Non Standard Low Volume and High Costs Increasing complexity

4. COCASO3 October, 17th 2005 ICMA Expo, Miami Dual Interface Card - Applications Wireless Interface for Identification Access Low security ID Border control Contact Interface for Security/Signature PKI for Transaction Data Exchange with High Rates/Volume High Security ID (e.g. Biometric)

5. COCASO4 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards Banking Application Contactless transactions (e.g. Paypass) in North America in project status EMV application in planning Contact for EMV application Europe, Asia, EMEA, Africa Existing card reader infrastructure Open platforms for non-financial add-ons Dual Interface Card projects in Asia

6. COCASO5 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards Banking Application Mastercard and Visa provide Dual Interface Operating systems MChip and JCOP Existing Card Reader Infrastructures Europe contact reader in business and private environment North America currently building up Contactless systems Interoperability

7. COCASO6 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards Banking Application Multi Application of financial cards will ask for Dual functionality Non financial Add ons (e.g. public transport) Involved costs to be paid by Scheme provider Customer Interoperability in payment between Continents just for a minority of customer

8. COCASO7 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards ID Application Contactless Interface for travel documents is defined by ICAO Passport with biometric data storage projects in every country Current set up of border control infrastructures Need for increased security

9. COCASO8 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards ID Application ID cards ID cards are employed in many countries with increasing use Card size is merging to ID-001 In the EU Schengen area ID cards are valid travel documents PKI infrastructures for governmental applications (tax, registration etc. via internet) are installed on contact basis.

10. COCASO9 October, 17th 2005 ICMA Expo, Miami Dual Interface Cards ID Application The ID card in the EU will merge to a Dual Interface ID-001 card. For traveling identification with an ICAO conform contactless interface Including storage of biometric data For secure authentification in a PKI infrastructure on a contact interface Including key generation and verification for multiple applets

11. COCASO10 October, 17th 2005 ICMA Expo, Miami DIC Technology Advances Basics Module – Contacts – Antenna Electrical Connection by Anisotropic conductive adhesive (ACA) Isotropic conductive adhesive (ICA) Welding Technologies (TC bonding) Electro Magnetic Coupling

12. COCASO11 October, 17th 2005 ICMA Expo, Miami DIC Technology Advances Basics Main target is on the card side to get a reliable connection between the module/chip and the antenna

13. COCASO12 October, 17th 2005 ICMA Expo, Miami adhesive matrix connection particals adhesive matrix micro connections micro contacts *Anisotropic Conductive Adhesive DIC Technology Advances - ACA* Connection Further technology development Optimization of the polymer matrix Optimization of the conductive filler In testing at various card manufacturer

14. COCASO13 October, 17th 2005 ICMA Expo, Miami Epoxy silver filled has been replaced by flexible systems on silicone basis Flexible Bump (Mühlbauer, D) Polymer Spring (SPS, F) Good reliability results due to permanent elastical pressure onto the contacts Systems are in testing and qualification at card manufacturer DIC Technology Advances - ICA* Connection

15. COCASO14 October, 17th 2005 ICMA Expo, Miami DIC Technology Advances - Welding Connection BASIC CARD STRUCTURE Antenna Wire embedded Hot melt tape Thermo Compression bonding window M8.4 Module Mag stripe (option) Overlay CARD INLAY White or printed sheet

16. COCASO15 October, 17th 2005 ICMA Expo, Miami DIC Technology Advances - Welding Connection Thermal Compression welding results in a very hard and strong connection. Different technologies available Wire pull out on the finished card (China) Prelams with module connected (Smartrac) available as blank white cards, prelaminated inlays (development), and unlaminated inlays (Q4/05) Cards in testing and qualification at card manufacturer

17. COCASO16 October, 17th 2005 ICMA Expo, Miami DIC Technology Advances - Electro Magnetic Coupling The contact between the module and a special trimmed ID1 antenna (booster) is a specific electromagnetic coupling. NO contact between the devices. Highest reliability, material independent (PVC, PC, PET etc.) Testing and qualification at card manufacturer and passport producer

18. COCASO17 October, 17th 2005 ICMA Expo, Miami Technology Advances Multi Technology Cards DISPLAY KEYPAD BATTERY RELOADABLE BATTERY ANTENNA SENSORS BIOMETRIC SENSOR SOLAR POWER UNIT DATA STORAGE COMPUTING

19. COCASO18 October, 17th 2005 ICMA Expo, Miami Multi Technology Cards - Development ISO compliant sample cards are in development. High development activity for certain components Driving factor are electronic devices (e.g. PDA, Mobile, electronic paper) DISPLAY - BIOMETRIC SENSOR - KEYPAD - SWITCH - DIODES - BATTERY - ANTENNA - SENSORS - AKKUMULATOR - SOLAR POWER UNIT - DATA STORAGE - COMPUTING

20. COCASO19 October, 17th 2005 ICMA Expo, Miami Summary Increased DIC demand lead to reliable Module/Antenna connections Industrial High Volume DIC Production in 2006 High Potential for Lucrative Business Cases Products with Complex Electronic Circuits have been proposed and are under further development High R&D Activity lead to New Components and Technologies for Smart Cards

21. COCASO20 October, 17th 2005 ICMA Expo, Miami THANK YOU FOR YOUR ATTENTION Business Models and Technology Advances for DIC More Information: COCASO – Thies Janczek – Moewenstrasse 5a – 24113 Molfsee – Germany Phone: +49-(0)4347-703526 – Email : janczek@cocaso.com www.cocaso.com

22. COCASO21 October, 17th 2005 ICMA Expo, Miami