ActivCard Strong Authentication Technology to Support Microsoft ISA Server 2004

Integration Works to Help Strengthen Customer Security and Lower Total Cost of Ownership

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Wednesday, February 25, 2004; 12:00 AM

RSA Conference, SAN FRANCISCO, CA - February 25, 2004 - ActivCard Corp. (NASDAQ:ACTI), a global provider of strong authentication and trusted digital identity solutions for secure remote access, single sign-on and enterprise access cards, today announced that its ActivCardŽ AAA Server will support Microsoftâ Internet Security and Acceleration (ISA) Server 2004 when it is available later this year.

ActivCard AAA Server deployed with ISA Server 2004 is expected to help enterprise customers further protect their digital assets by ensuring and tracking user identities across a network from anywhere, at any time. The ActivCard Secure Remote Access Solution is expected to be a strong complement to the ISA server by adding scalable and strong two-factor authentication services for secure VPN and web access.

ISA Server 2004, currently available for public beta at http://www.microsoft.com/isaserver/beta, is an advanced application layer firewall, VPN and Web cache solution that enables customers to easily maximize existing IT investments by improving network security and performance.

Approximately $2.45 billion was spent by U.S. organizations on CPE-based (remote access and site-to-site) and network-based IP VPN services in 2003, according to research firm In-Stat/MDR. The ActivCard AAA Server compliance with RADIUS authentication standards provides remote users with secure access to their company network through a variety of cost-effective authentication devices including hardware and software tokens, USB keys and smart cards. The ActivCard modular solution offering also enables organizations wishing to incorporate advanced smart card-based capabilities to smoothly upgrade to ActivCard Enterprise Access Card identity badge solutions with ease - adding increased value and flexibility.

"Organizations are increasingly seeking to multiply productivity by enabling critical data and applications to be accessed online or through VPN technology," said Frank Bishop ActivCard Senior Vice President of Global Sales and Marketing. "Combining the authentication intelligence of ActivCard AAA Server with the speed and manageability of ISA Server 2004 results in a dynamic work environment for remote users wishing to access their corporate network with ease and confidence."

ActivCard AAA Server offers strong one-time password authentication through the use of a PIN, similar to that used for an ATM card, while eliminating the hassle and insecurities of static passwords. Unlike costly leased token solutions, ActivCard authenticators do not expire, providing a much better return on investment. Users can smoothly migrate from their existing legacy leased token environment without interruption to users - thus streamlining the immediate adoption of more cost-effective ActivCard technology.

"The popularity of working remotely is growing exponentially," said David Gardner, Business Development Manager of the Security Business and Technology Unit at Microsoft Corp. "ActivCard can help address the remote access security needs of our mutual customers by providing additional authentication capabilities."

About ActivCard

ActivCard, www.activcard.com, is a global provider of strong authentication and trusted digital identity solutions for secure remote access, single sign-on and enterprise access cards. Our scalable systems and strong authentication solutions are trusted by organizations - from enterprise to governments around the world. ActivCard delivers maximum Return On Identity™ (ROI) through increased security, reduced cost, and user convenience. The modular product design allows our customers to add capabilities as required, preserving their investment

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with changes in our management team, fluctuations in operating results, our history of losses, and other risks identified in our periodic filings with the United States Securities and Exchange Commission, including, but not limited to, those appearing under the caption "Risk Factors" in our most recent Annual Report on Form 10-K, and in our Quarterly Reports on Form 10-Q. Copies of these filings are available from ActivCard and on the SEC's website at www.sec.gov . Actual results, events and performance may differ materially from our forward-looking statements. 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.

ActivCard is a registered trademark and Return on Identity is a trademark of ActivCard in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.

ActivCard Corporate Julie White jwhite@activcard.com 510-574-1708 U.S. West Coast business hours The Merritt Group Agency Tom Rice rice@merrittgrp.com 703-556-6300 U.S. East Coast business hours Consort PR Agency Tony Bovill tony@consortpr.co.uk +44 1344 626171 U.K. business hours