ג'מלטו דוחה את ההצעה הבלתי מותנית שלא התבקשה של אטוס

Gemalto, the world leader in digital security,
is best positioned to grow successfully on a standalone basis and
create long term value for its stakeholders, including its shareholders

The Atos proposal does not form the basis for constructive engagement as it:

• fails to provide a compellingstrategy versus Gemalto's standalone prospects;
• significantly undervalues theCompany;
• fails to adequately addressthe interests of its various stakeholders;
• does not offer sufficient dealcertainty.

Amsterdam, December 13, 2017 at 8:00 PM, GLOBE NEWSWIRE:

Gemalto N.V. (the Company) announces that it has rejected the unsolicited and conditional proposal by Atos SE (Atos) for a possible recommended cash offer for all issued and outstanding shares of the Company at an offer price of EUR46 per share (cum dividend) set forth in letters received from Atos on 28 November, 8 December and 11 December 2017, and as announced by Atos on 11 December 2017 (the Proposal).

Gemalto, the world leader in digital security, is best positioned to grow successfully on a standalone basis and create long term value for its stakeholders, including its shareholders.

Consistent with its fiduciary duties, the Board of Directors, in consultation with its financial advisors Deutsche Bank and J.P. Morgan and legal advisors Allen & Overy and Darrois Villey Maillot Brochier, has carefully reviewed and discussed whether the Proposal is in the best interests of the Company, its business and clients, employees, shareholders and other stakeholders. After thorough consideration, the Board of Directors has unanimously come to the conclusion that this is not the case.

Philippe Vallée, Gemalto CEO commented: "In 11 years, we have turned Gemalto into a technology Blue-Chip, recognized in over 180 countries throughout the world. In 11 years, the Company has created 5 000 jobs. In 11 years, Gemalto has become the world leader in digital security.

We have taken the measure of the recent changes in our historical markets, taken the responsible decisions and are now focused on leveraging the many opportunities of our fast-growing markets.

We will soon be presenting to our stakeholders our ambitious and substantial development plan for the Company that will focus on the next generation of digital security for companies, governments and citizens worldwide.

Gemalto's employees, its Board of Directors, its Management team and I are fully aligned and committed to achieving the success of this plan that will benefit our stakeholders, including all our shareholders."

In its review, the Board of Directors has considered the following topics of particular relevance:

Strategy

Gemalto - the world leader in digital security - is best positioned to grow successfully on a standalone basis and create long term value for its stakeholders, including its shareholders, through its ambitious strategy.

• Gemalto's unique technology platformallows it to support clients' digital security needs across multiplehigh-growth markets;
• Gemalto is well advanced in itstransition from traditional banking and telecom smartcard markets tofast-growing Government, Enterprise & Cybersecurity andMachine-to-Machine markets;
• The implementation of Gemalto'stransition plan is already enabling the Company to be more agile andnimble and better serve its clients' needs. The Proposal is unclear as tocritical elements of the combination strategy, integration and potentialconsequences for its stakeholders;
• Gemalto is organized to benefit frominnovation across its business units and the potential break-upcontemplated by Atos through the contribution of Gemalto's businesses tothree separate divisions of Atos (for example the integration of the paymentsbusiness into Worldline) would negatively impact Gemalto's performance andability to best serve its clients.

Valuation

The Board of Directors considers that the Proposal significantly undervalues the Company:

• The timing of the Proposal isopportunistic: the proposed offer price represents a discount of 27.4% vs.Gemalto's last 12-month high and a premium of only 3.5%^[1] vs.Gemalto's 12-month average share price. It is made at a time when Gemaltohas stabilised its performance following a challenging period;
• As mentioned, Gemalto is welladvanced in the transition from traditional banking and telecom smartcardmarkets to fast-growing Government, Enterprise & Cybersecurity andMachine-to-Machine markets. The impact of this transition is yet to bereflected in the Company's share price as its strategy and positioningaround these growth segments will be detailed during the forthcomingCapital Markets Day;
• The proposed offer price of EUR46per share does not reflect Gemalto's leadership positions in thesefast-growing segments, and is well below the valuation levels of companiesinvolved in highly strategic Government and Cybersecurity activities;
• The Proposal does not adequatelyreflect a fair sharing of synergies accruing from the potentialcombination, which Atos believes to be substantial.

Deal certainty

The Proposal does not provide adequate deal certainty, given the significant conditionality attached to it, and the likely execution risks involved in the proposed transaction. In particular, the Proposal does not contain a substantiated explanation on, and analysis of, the envisaged anti-trust, CFIUS and other clearance procedures. It lacks details on timing, risks and potential remedies that would be offered to ensure completion. In addition, the proposed merger protocol contains a number of off-market, unclear, unusual and unacceptable terms and conditions.

Stakeholders

The Proposal falls short in addressing the interests of the Company, its business and clients, employees, shareholders and other stakeholders.

The Proposal provides very limited protection for Gemalto's other stakeholders, mentioning only a small number of general topics, and falls short of actual and concrete commitments. The Proposal fails to include important non-financial commitments customary for a friendly recommended transaction of this size and nature, including, but not limited to, commitments on no-redundancies, customer approach, and the required fair dealing and protection of the interest of any remaining minority shareholders if the offer were to be declared unconditional. In addition, the proposed duration of the non-financial covenants is not specified and their enforcement is not safeguarded post potential completion and delisting, leaving the Company's stakeholders essentially unprotected.

Atos' approach

The Board of Directors also note that Atos' Proposal is not reflective of a friendly and collaborative approach as it was not preceded by customary exploratory discussions, the announcement of the Proposal was done unilaterally and Atos indicated its intention to file an offer memorandum with the AFM irrespective of whether it has reached agreement with Gemalto. The Board of Directors is concerned that this could exemplify cultural differences between the two companies.

Attached to this press release is a copy of the letter that was sent today on behalf of the Board of Directors of Gemalto to Mr Thierry Breton, Chairman and CEO of Atos.

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2016 annual revenues of €3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world.

From secure software to biometrics and encryption, our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between.

Gemalto's solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software - enabling our clients to deliver secure digital services for billions of individuals and things.

Our 15,000+ employees operate out of 112 offices, 43 personalization and data centers, and 30 research and software development centers located in 48 countries.

For more information visit

www.gemalto.com, or follow @gemalto on Twitter.

.

Valuation

The Board considers that the Proposal significantly undervalues the Company and is not reflective of the intrinsic value and prospects of Gemalto.

The timing of your Proposal is opportunistic, seeking to take control of the Company at a price that represents a discount of 27.4% vs. our last 12-month high and a premium of only 3.5%^[2] vs. our 12-month average share price and at the time when the Company has stabilised its performance following a challenging period.

As mentioned, our business mix today is transitioning towards attractive growth activities such as Government, Enterprise & Cybersecurity and Machine-to-Machine, which together accounted for over 55% of our Q3 2017 reported revenue and grew at over 20% year-on-year.  Such businesses, especially at scale, are very scarce and of high strategic value. The impact of this transition is yet to be fully reflected in the Company's share price and our strategy and positioning around these growth segments will be further detailed during our forthcoming Capital Markets Day.

Your proposed offer price of EUR46 per share corresponds to a valuation which does not reflect our leadership positions in these faster growing segments, and is well below the valuation levels of companies involved in highly strategic Government and Security activities.

In addition, we would expect any Proposal to adequately reflect a fair sharing of synergies accruing from a transaction, which you have indicated you believe to be substantial.

Deal certainty

The Board considers that your Proposal does not provide adequate deal certainty, given the significant conditionality attached to it, and given the execution risks involved in the transaction envisaged by your Proposal. In particular, your Proposal does not contain a substantiated explanation on, and analysis of, the envisaged anti-trust clearance procedures, timing, risks and potential remedies you would be prepared to offer to ensure completion of the contemplated transaction. The same applies in respect of any other regulatory clearances that may be required, such as CFIUS. In addition, your draft framework for the merger protocol contains a number of off-market, unclear, unusual and unacceptable terms and conditions, that give further serious concerns on deal certainty.

Stakeholders

Importantly, the Board concludes that your Proposal is not sufficient in addressing the interests of the Company, its business, employees, shareholders and other stakeholders.

We are continually developing our business in response to the constantly evolving needs of our customers, with whom we develop innovative solutions through trusted and long-term relationships. Our business is key to the governments and citizens that we serve in the area of data security, data privacy and confidentiality.

We put a strong focus on developing solutions that help tackle some of society's major challenges, ranging from financial inclusion to efficient and accessible health and welfare services. We continuously maintain significant commercial and technical investments, as we believe these will contribute over the long-term to the progress of the mobile and digital society for our customers and for citizens. For example our investments contribute to the continuous global interoperability of mobile telephony systems and card payment systems, as well as the global deployment of interoperable digital identity systems that people, companies and governments can trust, such as electronic ID documents and their fully digital equivalents such as trusted digital driver licenses on mobile phones.

Your draft framework for a merger protocol provides only for very limited protection of our stakeholders. This is not in line with market practice, and is not in line with a friendly recommended transaction. In this respect, your Proposal mentions only a small number of general topics, without mentioning actual and concrete commitments. Important non-financial covenants (NFCs) customary for a friendly recommended transaction of this size and nature are not included in your Proposal, including, but not limited to, those on no-redundancies, continued R&D, approach to customers, the employees' savings plans, the employee share option plan, and the required fair dealing and protection of the interest of any remaining minority shareholders after your offer would be declared unconditional. In addition, the proposed duration of the NFCs is not specified, and the enforcement of the NFCs is not safeguarded post-completion and delisting, leaving our other stakeholders essentially unprotected.

Your approach

We also noted that your approach in making your Proposal is not reflective of a truly friendly and collaborative approach. On 28 November 2017, your first letter on the Proposal was delivered to our CEO without customary preceding explorative discussions. Following our communication to you that we would revert on or before the 15 December 2017, on 11 December 2017 you announced the Proposal unilaterally without prior consultation. In your announcement of the Proposal you also indicated that you will proceed with filing an offer memorandum with the AFM, irrespective of whether or not you have reached agreement with Gemalto.

This sequence of events and the steps you have chosen to take, have led the Board to believe that your approach, contrary to your statements in your announcement of the Proposal, is not friendly and collaborative. Obviously, the nature of an approach and real signs of a true intention to seek the Board's support are important for the Board's consideration of any proposal. We have concerns that this could exemplify cultural differences between our two companies.

Conclusion

After its thorough and careful review, our Board has determined that your Proposal does not, from the perspective of Gemalto, have a sufficiently substantiated strategic rationale and fails to adequately address the consequences it will have for Gemalto's business. Furthermore, the Board has determined that your Proposal significantly undervalues the Company, is highly conditional and uncertain and fails to adequately address the interests of our various stakeholders. As such, your Proposal does not form a basis for constructive engagement.

Thank you for your proposal and for your interest in our Company.

Very truly yours,

^[1] As of market close on 11 December 2017

^[2] As of market close on 11 December 2017

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/2214a9af-6678-45f4-ab6e-4d2eba66b521

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