[gatos]

Hi Ed

Yes, there is an immobiliser chip inside the key. Since your car is a phase 1 model (1996-2000) you should be able to get a key cut and programmed at your local Timpsons. A few years back, I took a 1998 S40 key and a 2002 S40 key and they could only read and reprogram the 1998 one. A few more member here with Phase 1 cars reported that they have also successfully got copies at Timpsons, or other local key cutting places.