SCM Microsystems Enters German Healthcard Terminal Market CeBIT, HANOVER, Germany and FREMONT, Calif., March 10 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY), a leading provider of solutions that open the Digital World, today announced plans to enter the market for hardware terminals designed to read the new German electronic healthcard. The announcement was made at the CeBIT exhibition in Hanover, where SCM is showing prototypes of the new terminal for doctors and pharmacies from March 10 to 16, 2005 in hall 17, Booth # A01 (47). SCM will also demonstrate the new terminal at the booths of its partners, Giesecke & Devrient, Booth # D28 in hall 17 and IBM and Giesecke & Devrient, Booth # C52/1 in hall 9. Germany is in the process of deploying a new intelligent, electronic healthcard to its citizens throughout the country. 80 million intelligent healthcards are expected to be in use by 2006. The new chip-based healthcards are intended to bring greater efficiency and cost control to the German healthcare system while safeguarding confidential patient-related data. The healthcards will also require a new terminal infrastructure for healthcare providers. Beginning in the fourth quarter of 2005, 1.2 million terminals will be shipped to doctors and dentists' offices, pharmacies, clinics and hospitals in Germany. SCM's new terminal solution will read and operate both with Germany's current memory card-based healthcard as well as with the new intelligent chip-based healthcard. The SCM terminal can be connected via USB or a serial interface to stand-alone PCs or alternatively the terminals can be used in a network environment within or between doctors' offices, pharmacies and hospitals. SCM Microsystems will participate in this market together with its partners. "SCM brings years of experience in serving sensitive market segments with highly secure smart card reader solutions," said Robert Schneider, chief executive officer of SCM Microsystems. "The German intelligent healthcard program has the potential for significant savings in money, time and perhaps even lives. We are working closely with our partners to implement the complex technologies required to address this important new application and we look forward to participating in this market as healthcare facilities begin their deployments late this year." Within the new German healthcard program three different types of cards will be used: the electronic healthcard for people covered by their health insurance, a health professional card (HPC) for doctors and pharmacists and a secure module card (SMC) in a SIM card form factor. SCM's terminals are designed to read all three types of cards. In addition to a savings potential of one billion Euros from the streamlining of processing between medical practices and health insurance companies, a major goal of the new healthcard system is to increase the quality and transparency of healthcare transactions for patients. The new intelligent healthcard system will facilitate applications such as ePrescription, access to emergency data and the Electronic Patient Record (EPR) as well as support for disease management programs. Protecting patient data is also critical, and will be accomplished through strong authentication of cardholders, using mechanisms such as a private PIN code. 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/. NOTE: 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, Inc. Web site: http://www.scmmicro.com/

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