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This latest milestone follows the strategy to offer RFID components and
Thinlams® for high security applications in the fields of eBanking and
eGovernment. This strategic move encouraged KSW Microtec to initiate further
expansion in its production environment at its headquarters in Dresden. The
MasterCard Certification for KSW¹s Thinlam product family enabled KSW
Microtec to offer a new generation of Thinlam® prelaminates with
Microcontrollers for banking applications at the highest security level
manufactured in Germany.

Now, with MasterCard Specialized Vendor Certification, KSW Microtec can
capitalize on its investment in innovation and high standards, by
consolidating its position in existing markets, strengthen its position in
the banking and eGovernment sectors and enter new markets, such as
healthcare.

³This Specialized Vendor Certification from MasterCard combined with the
MasterCard CQM certificate, demonstrates KSW¹s commitment to upholding the
highest security standard,² says Ines Leonhardt, Head of Quality Management
at KSW Microtec.

Following receipt of the Specialized Vendor Certification, which is specific
to KSW Mictrotec¹s newly introduced mobile phone sticker for ePayment,
eTicketing and loyalty ­ and is the result of customer recommendations, the
company is already seeing new orders from its trusted customers, especially
in the American market.

In addition, the MasterCard CQM, a card quality management program ensuring
high quality standards throughout the entire production process of
MasterCard-branded products, applies to the manufacture of KSW¹s inlays for
contactless-only ID-1 cards, specifically for the company¹s Thinlam® and
mobile phone sticker products.

Both certifications also mean that beyond providing customers and partners
in ePayment and eGovernment with a total and reliable solution, KSW Microtec
can now set its sights on a market that runs into the several millions in
terms of dollar revenues and the 100 millions in terms of the number of
prelaminates supplied.

KSW¹s polycarbonate Thinlam®, is already widely used in volume to meet the
security demands of issuers of highly secure cards and documents of all
types. In order to achieve this, multiple foil layers need to be added and
large memory security microcontrollers need to be incorporated, while
maintaining ISO standards for maximum card thickness. Due to its extreme
thinness down to 200µm and proven ability to support the manufacture of HF
and UHF RFID cards with multiple layers, Thinlam® is fit for purpose.

Furthermore, special construction techniques provide a mechanical stability
due to KSW¹s patented working technology for both the chip and the antenna.
The technology is successfully proven and Thinlam® is already produced in
volume. Issuers are guaranteed availability, durability and reliability.
Now, with a fully accredited product, KSW Microtec is set to extend its
reach into new markets and new applications.