SCM Microsystems Announces Completion of Transaction to Sell Its Digital TV Solutions Business to Kudelski
May 23 2006 - 3:30AM
PR Newswire (US)
FREMONT, Calif., May 23 /PRNewswire-FirstCall/ -- SCM Microsystems,
Inc. (Nasdaq: SCMM; Prime Standard: SMY), a leading provider of
solutions that open the Digital World, today announced that it has
completed the sale of its Digital TV solutions business to Kudelski
S.A. (SWX Swiss Exchange: KUD) for total consideration of $11
million. The transaction was initially announced on April 6, 2006.
The consideration includes up to $2 million payable subject to the
successful completion of certain product development milestones
that are expected to be completed by Kudelski subsequent to the
close of the transaction; however, no assurance can be given that
these milestones will be achieved. Under the terms of the
transaction, SCM has sold to Kudelski substantially all of the
assets that relate to its Digital TV solutions business, including
its office building in France, certain inventory, contracts,
trademarks and intellectual property. In addition, approximately 40
employees in Europe and Asia have joined Kudelski. About SCM
Microsystems SCM Microsystems is a leading supplier of solutions
that open the Digital World by enabling people to conveniently
access digital content and services. The company develops, markets
and sells the industry's broadest range of smart card reader
technology for secure PC, network and physical access and digital
media readers for transfer of digital content to OEM customers in
the government, financial, enterprise, consumer electronics and
photographic equipment 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/. About the Kudelski Group The
Kudelski Group (http://www.nagra.com/) is a world leader in digital
security. Its technologies are used in a wide range of applications
requiring access control and rights management, whether for
securing transfer of information (digital television, broadband
Internet, video-on-demand, interactive applications, etc.) or to
control and manage access of people or vehicles to sites and
events. The Kudelski Group is headquartered in Cheseaux-sur-
Lausanne, Switzerland, and its stock is listed on the Swiss Market
Index. Nagravision (http://www.nagravision.com/), a Kudelski Group
company, is the world's leading independent supplier of open
conditional access systems, DRM and integrated on-demand solutions
for content providers and digital TV operators over broadcast and
broadband platforms. Its technologies are currently being used by
more than 100 leading Pay-TV operators worldwide securing content
delivered to over 60 million active smart cards and devices. NOTE:
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These include, without limitation, our statement regarding the
additional payment of $2 million from Kudelski upon the completion
of certain development projects. These statements are subject to
risks and uncertainties, which may cause actual results to differ
materially from those contemplated herein. Some of the risks and
uncertainties that could cause our actual business and operating
results to differ include, but are not limited to, product
development upon which the contingent $2 million payment is based
may require additional time, or may not result in a successful
outcome, inc which case the $2 million might not be paid to SCM.
For a discussion of further risks and uncertainties related to our
business, please refer to our public company reports, including our
Annual Report on Form 10-K and Form 10-K/A for the year ended
December 31, 2005 filed with the U.S. Securities and Exchange
Commission. NOTE: All trademarks are the property of their
respective holders. DATASOURCE: SCM Microsystems, Inc. CONTACT:
Darby Dye, Investor Relations-US, 510 360 2302, or , or Manfred
Mueller, Investor Relations-Europe, +49 89 9595 5140, or , both of
SCM Microsystems, Inc. Web site: http://www.scmmicro.com/
http://www.nagra.com/
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