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2015-04-15

Gemalto : New Research Reveals Wide Gap between Perception and Reality of Perimeter Security Effectiveness

* While 87% of IT decision-makers feel their organization's perimeter
security is effective at keeping out security threats, 30% of IT
decision-makers admit their company has fallen victim to a data breach
* 33% think unauthorized users are still able to access their networks and
34% are not confident in the security of their organization's data should a
breach occur
* 90% of organizations that experienced data breaches suffered negative
commercial consequences as a result

AMSTERDAM - April 15, 2015
- Gemalto (Euronext NL0000400653 GTO), the world leader in digital security,
has today released the latest findings of the2015 Data Security Confidence
Index(DSCI). The report reveals a widening gap emerging between the
perception and the reality of perimeter security effectiveness amongst global
IT decision makers. The research shows increasing levels of investment in
this area of data protection, despite an exponential growth in the number of
data breaches.

Investments in Breach Prevention Rise Despite Increased Breaches of Perimeter
Security

The number of global data breaches continues to increase - according to
Gemalto'sBreach Level Index (BLI), more than 1,500 data breaches led to one
billion data records compromised in 2014 alone, a 49% increase in data
breaches and a 78% increase in data records stolen or lost compared to 2013.
Despite this the DSCI research shows that almost nine out of ten (87%) IT
decision makers feel their organization's perimeter security systems are
effective at keeping out unauthorized users. The study shows that IT decision
makers are looking to further increase their investment in perimeter security
with 64% looking to do so in the next 12 months. Interestingly, when thinking
of the most recent breaches, the average amount of breached data protected by
encryption was below 8%, highlighting the need for a more robust data
protection strategy.

Low Confidence in Ability to Prevent Breaches and Unauthorized User Access

Nevertheless, a third (33%) believe unauthorized users are still able to
access their networks and a further 34% are not confident in the security of
their organization's data, should a breach occur. In fact, the DSCI survey
reveals that as a result of recent high profile breaches, 71% of
organizations have adjusted their security strategy, but are still focused on
perimeter security. Adding to the confusion, nearly three quarters of IT
decision makers (72%) stated that their investment in perimeter security has
increased over the past five years, though 30% admitted that in the past 12
months their company has been victim to a breach, showing the need to
approach security differently. Although high-profile data breaches have
driven over seven in 10 (71%) organizations to adjust their security
strategy, more than three in five (62%) respondents are no more confident
than they were this time last year in the security industry's ability to
detect and defend against emerging security threats.

"With the number of sophisticated breaches on the rise, relying on perimeter
security systems alone is no longer enough. Traditional security staples such
as firewalls and anti-virus should be part of a much greater security
strategy. IT decision makers need to take into account that if someone is
motivated enough they will breach a network, no matter how well it is
protected,"
said Tsion Gonen, Vice President of Strategy for Identity and Data Protection
at Gemalto.

Commercial Impacts of Data Breaches

As a result of these attacks, nine out of 10 organizations (90%) suffered
negative commercial consequences, including delays in product or service
development (31%), decreased employee productivity (30%), decreased customer
confidence (28%), and negative press (24%). This highlights the severe
consequences of data breaches, which can be damaging both to an
organization's reputation and bottom line, as well as to customers'
confidence in entire industry sectors.

"Organizations still place too much emphasis on perimeter security
,even though it has proven to be ineffective
", added Gonen. "Decision makers should place greater importance on customer
data, and look to
adopt a 'secure the breach' approach that focuses on securing the data after
intruders penetrate the perimeter defenses. This means they need to attach
security directly to the data itself using multi-factor authentication and
data encryption, as well as securely managing encryption keys. That way, if
the data is stolen, it is useless to the thief
."

For a full summary of data breach incidents by industry, source, type and
geographic region, download the
2014 Breach Level Index Report.

Related Resources

* Data Security Confidence Index Report
* Data Security Confidence Infographic
* Breach Level Index
* Secure the Breach Manifesto
* Secure the Breach Web Site

Through its acquisition of SafeNet, Gemalto offers one of the most complete
portfolios of enterprise security solutions in the world, enabling its
customers to enjoy industry-leading protection of digital identities,
transactions, payments and data - from the edge to the core. Gemalto's
complete portfolio of SafeNet Identity and Data Protection solutions enable
enterprises across many verticals, including major financial institutions and
governments, to take a data-centric approach to security by utilizing
innovative encryption methods, best-in-class crypto management techniques,
and strong authentication and identity management solutions to protect what
matters, where it matters. Through these solutions, Gemalto helps
organizations achieve compliance with stringent data privacy regulations and
ensure that sensitive corporate assets, customer information, and digital
transactions are safe from exposure and manipulation in order to protect
customer trust in an increasingly digital world.

About the Data Security Confidence Index

The research conducted by Vanson Bourne on behalf of Gemalto polled more than
900 individuals across the U.S., UK, Europe, Middle East and Asia-Pacific.
Respondents were comprised of security and IT executives across various
verticals, including financial services, healthcare, manufacturing, the
public sector, telecommunications, utilities, retail, construction,
insurance, legal and more. The full report can be foundhere.

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security,
with 2014 annual revenues of €2.5 billion and blue-chip customers in over 180
countries.

Gemalto helps people trust one another in an increasingly connected digital
world. Billions of people want better lifestyles, smarter living
environments, and the freedom to communicate, shop, travel, bank, entertain
and work - anytime, everywhere - in ways that are enjoyable and safe. In this
fast moving mobile and digital environment, we enable companies and
administrations to offer a wide range of trusted and convenient services by
securing financial transactions, mobile services, public and private clouds,
eHealthcare systems, access to eGovernment services, the Internet and
internet-of-things and transport ticketing systems.

Gemalto's unique technology portfolio - from advanced cryptographic software
embedded in a variety of familiar objects, to highly robust and scalable
back-office platforms for authentication, encryption and digital credential
management - is delivered by our world-class service teams. Our 14,000
employees operate out of 99 offices, 34 personalization and data centers, and
24 research and software development centers located in 46 countries.

For more information
visitwww.gemalto.com,www.justaskgemalto.com,blog.gemalto.com, or
follow@gemaltoon Twitter.

Gemalto media contacts:

-----------------------------------------------------------------------------------------
| Nicole Williams Vanessa Viala Vivian Liang |
|North America |
|+1 512 758 8921 Europe&CIS (Greater China) |
|nicole.williams@gemalto.com +49 89 210 299 129 +86 1059373046 |
| vanessa.viala@gemalto.com vivian.liang@gemalto.com |
| Ernesto Haikewitsch Kristel Teyras Pierre Lelievre |
|Latin America Middle East&Africa Asia Pacific |
|+55 11 5105 9220 +33 1 55 01 57 89 +65 6317 3802 |
|ernesto.haikewitsch@gemalto.com kristel.teyras@gemalto.com pierre.lelievre@gemalto.com |
-----------------------------------------------------------------------------------------
Press release (PDF)
http://hugin.info/159293/R/1911040/681731.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Gemalto via Globenewswire

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