SCM Microsystems' Cablecard Modules With Conax CA First to Receive Korean Telecommunication Authority Approval SCM, Conax First Suppliers Approved for Secure Cable TV Decryption in South Korea FREMONT, Calif., June 7 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) today announced that it has achieved certification from South Korea's Telecommunications Technology Association (TTA) for its CableCARDTM decryption modules carrying conditional access security software from Conax AS. TTA has judged SCM's modules to be compliant with the Korean OpenCableTM standard for digital cable television broadcasting and therefore SCM is officially approved as a supplier of CableCARD(TM) modules to the South Korean cable market. SCM's modules are also the first to obtain TTA certification including the required copy protection function. SCM has worked closely with Conax to achieve certification of its CableCARD modules, which are hardware devices used to provide digital cable subscribers with secure access to their pay-TV broadcasts by inserting them into the common interface slot of a set-top box. The modules utilize crypto-processors and various layers of copy protection technology to make them highly secure and able to protect content from digital piracy. "Certification from TTA is an important step forward for companies that wish to play a role in the burgeoning digital cable market in South Korea," said Robert Schneider, chief executive officer of SCM Microsystems. "We are pleased to mark this significant event with our partner Conax and look forward to exploiting further business opportunities with Conax in Korea." "We are very pleased and proud to get the official approval from the Korean Government for our CA technology on SCM modules. As the first CA supplier to complete the Phase 1 certification including copy protection, Conax is now ready for the Korean market. This certification is also a step in the process of getting Conax CA technology approved for the US cable market," said Ole Hansvold, Executive Vice President and COO of Conax AS. The Digital TV Market in South Korea The South Korean government is deploying digital cable television to between six and nine million households in Korea over the next several years. In November 2001, the South Korean government selected OpenCable as the technical standard for securing the country's digital cable TV broadcasts. By adopting this open standards-based broadcast security model, the South Korean government hopes to create a digital television industry that is both competitive for consumers and profitable for operators. OpenCable was originally developed by Cable Television Laboratories, Inc. (CableLabs(R)) for the North American cable TV market and subsequently was adapted for use in South Korea. Although the Korean security module is based on the same OpenCable CableCARD interface specification used in the U.S., the Korean security modules will not operate with U.S. OpenCable devices, or vice versa, for regional security purposes. About TTA TTA (Telecommunications Technology Association) is an IT standards organization that develops new standards and provides one-stop services for the establishment of IT standards as well as providing testing and certification for IT products. Since the establishment of TTA (a non-governmental IT standards setting body) in the year of 1988, it has been contributing as a member of international standards organizations through the international cooperation as well as setting Info-Communication standards in South Korea. TTA has a partnership with CableLabs(R) for OpenCable(TM) standardization and testing based on an MoU signed in October 2002. TTA also has a business partnership with the world's leading testing organizations, The Tolly Group (http://www.tolly.com/) and VeriTest of LionBRIDGE (http://www.veritest.com/) in the US. About Conax AS Conax is a leading supplier of state-of-the-art, highly innovative solutions for smart card-based conditional access, security and payment solutions. Conax is a globally oriented player, with a solid base of clients in over 50 countries. The head quarters are in Oslo, Norway, with subsidiaries in India and San Diego and sales & support offices in Singapore, China, Pakistan, Korea, Brazil and Germany. Conax is ISO 9001 and BS7799 certified. http://www.conax.com/ 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: OpenCable and CableCARD are trademarks and CableLabs is a registered trademark of Cable Television Laboratories, Inc. (CableLabs). All other trade names are either trademarks or registered trademarks of their respective holders. DATASOURCE: SCM Microsystems, Inc. CONTACT: Manfred Mueller, +49 89 95 95 5140, or ; or Darby Dye, +1 510-360-2302, or , both of SCM Microsystems Web site: http://www.conax.com/ Web site: http://www.scmmicro.com/

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