Aspace Solutions Achieves Acquisition Milestone

FREMONT, Calif., February 3, 2005 – ActivCard Corp (Nasdaq: ACTI), today announced that Aspace Solutions Limited, recently acquired by ActivCard, has signed a marketing agreement with IBM, strengthening the sales and marketing relationship with IBM and validating the 4TRESS® product.

The agreement with IBM includes the following:

• Joint sales and marketing of each other’s products and services,
  IBM reseller agreement for 4TRESS
• Integrating 4TRESS with IBM’s hardware platform (AIX),
• Integrating 4TRESS with IBM middleware products (Tivoli® Access Manager, DB2® and WebSphere®),
• Maintaining the 4TRESS product on the latest versions of IBM’s infrastructure

“This milestone represents one of the reasons for pursuing our acquisition of Aspace Solutions,” said Ben C. Barnes, Chief Executive Officer of ActivCard. “The synergy of the combined technology solutions, intellectual capital and industry expertise creates an unparalleled solution set that positions ActivCard to become a leader in the banking segment.”

“This agreement validates the 4TRESS product we have developed in conjunction with leading banks,” said Steve Keohane, Vice President, ActivCard Financial Solutions. “Being able to integrate, sell, and market together with IBM on a global scale is a big win for our product and ActivCard.”

The signing of a marketing agreement with IBM by January 31, 2005 was one of the predefined milestones outlined in the terms of the acquisition of Aspace by ActivCard on December 21, 2004. In accordance with the terms of the acquisition, ActivCard will pay an additional $3.8 million (£2.0 million) to Aspace in 50 percent ActivCard common stock and 50 percent cash as a result of accomplishing this milestone.

About ActivCard
ActivCard is a global provider of identity assurance solutions that, when integrated into an identity management system, allow customers to issue, use and manage trusted digital identities. ActivCard's solutions include secure remote access, single sign-on, enterprise access cards, and multi-channel identification and verification. Globally, over seven million users at corporations, government agencies, and financial institutions use ActivCard solutions to safely and efficiently interact electronically. Headquartered in Fremont, Calif., ActivCard has development centers in the US, France, and the United Kingdom and sales and service centers in more than nine countries. For more information, visit www.activcard.com.

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks identified in our periodic filings with the United States Securities and Exchange Commission (SEC), 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.

Contact:

Robin Schultz
ActivCard Corp.
+1 510 745 6221
rschultz@activcard.com