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SCM Security Modules Certified by Swedish Operator BOXER-TV ACCESS SCM Ships First 10,000 Digital TV Security Modules to Distributors FREMONT, Calif., Feb. 21 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (NASDAQ:SCMMNASDAQ:PrimeNASDAQ:Standard:NASDAQ:SMY), a leading provider of solutions that open the Digital World, today announced that Swedish operator BOXER TV-ACCESS has tested and approved SCM's digital TV security modules for use with BOXER's DTV broadcast network. BOXER offers individual households or entire buildings access to DTV and interactive services at a low cost using terrestrial broadcasting technology that can be received with a regular TV-antenna. SCM also announced the company has shipped the first 10,000 security modules to distributors serving the market in Sweden. SCM's security modules for BOXER-TV ACCESS utilize the VIACCESS(TM) security system, which the Swedish digital terrestrial TV operator is offering to existing and new subscribers in Sweden. The SCM security modules comply with the Digital Video Broadcasting (DVB) Common Interface (CI) standard. "The Common Interface standard separates security functions from the set top box receiver into a security module," said Robert Schneider, CEO of SCM Microsystems. "As a result, manufacturers do not need to embed security, creating an operator-independent platform. Ultimately, this is good for everyone in the chain -- television and set top box manufacturers, broadcasters and especially consumers." By using terrestrial broadcast, Boxer eliminates the need to connect cables or have satellites at their client locations. Since they are using DTV, they are able to deliver more channels and in most cases deliver a better picture quality than ever before even on old televisions. "We see CI as the best way to secure our services and broaden our market reach at the same time. As CI-ready DTVs and personal video recorders become more and more important in Sweden, we will be well positioned," said Crister Fritzson, CEO of Boxer. "We approved SCM CI security modules for our distributors to use with approved CI receivers after our extensive testing demonstrated consistently good quality and signal reliability." Worldwide about 350 companies have endorsed the DVB standard for digital TV security resulting in set top boxes and digital televisions with a Common Interface (CI) slot that accepts a security module. The security module works with a smart card issued by the broadcaster and acts as a "lock" to safeguard broadcast content. SCM is a pioneer in digital TV security and to date has provided more than seven million security modules to operators in Europe and Asia. Implementing security software under official license from the world's leading conditional access providers, operators such as Premiere, Canal Digitaal, ORF, Multichoice, TopUpTV, DigiTurk in Europe and Broadband Solutions Inc. (BSI) in Asia use SCM's modules. About Boxer TV-Access AB Boxer TV-Access AB was founded in 1999 and is owned by Teracom and Skandia. Boxer's business concept is to offer individual households or entire buildings access to digital TV and interactive services at a low cost with a regular TV-antenna. Boxer employs approximately 30 people. About SCM Microsystems SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to securely access digital content and services. The company develops, markets and sells its smart card reader technology for network and physical access and conditional access modules for secure digital TV decryption to OEM customers in the government, financial, enterprise and broadcasting markets worldwide. Global headquarters are in Fremont, California, with European headquarters in Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com/. All company and/or product names are trademarks or registered trademarks of their respective manufacturers. DATASOURCE: SCM Microsystems, Inc. CONTACT: Dr. Manfred Muller of SCM Microsystems, +49 89 9595 5140 or ; or Deb Montner of Montner & Associates, +1-203-226-9290 or , for SCM Microsystems Web site: http://www.scmmicro.com/

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