SCMM Scm Microsystems (MM)

ISMANING, Germany, May 27 /PRNewswire-FirstCall/ -- SCM Microsystems, GmbH. (NASDAQ:SCMMNASDAQ:PrimeNASDAQ:Standard:NASDAQ:SMY), a leading provider of solutions that open the Digital World, announced today that it has entered into a Memorandum of Understanding with Sony Corporation to develop and supply FeliCa(R) contactless card readers for international markets. Under the arrangement, SCM will develop its own line of FeliCa products targeting the enterprise, mobile and banking markets. Initially, the product portfolio is planned to consist of FeliCa Physical Access Control Terminals (PACT); additional products are under discussion between the two companies. All SCM terminals and readers developed under the cooperation are anticipated to be fully ISO 14443 and FeliCa capable and fully support Near Field Communication (NFC) functionality. SCM expects to introduce the first readers in its FeliCa portfolio in the fourth quarter of 2008. FeliCa is the de facto standard for contactless payment in Japan, which is the most developed contactless market in the world with more than 250 million electronic payment cards and FeliCa-enabled mobile phones in circulation today. Created by Sony, FeliCa is based on radio frequency identification (RFID) technology and enables flexible and secure contactless transactions, making it useful for a variety of applications, including electronic cash, points systems and ticket purchases. The word "FeliCa" derives from Felicity Card, underscoring the card's aim to make daily living easier and more convenient. The FeliCa card allows users to send and receive data at high speed and with high security. As the card can be used over and over again by rewriting the data, the system also is very environment-friendly. "We are very pleased to be selected by Sony as a trusted partner in their FeliCa initiative," said Felix Marx, Chief Executive Officer of SCM Microsystems. "This is a significant achievement for SCM and the foundation of what we hope will be a long-term relationship with Sony and other players in the global FeliCa ecosystem." "We are looking for experienced and reliable partners who have the ability to help expand the FeliCa globally. We welcome the cooperation with SCM Microsystems and look forward to making it a success," said Hiromasa Otsuka, Corporate Executive Senior Vice President at Sony Corporation responsible for the FeliCa Business Division. About SCM Microsystems SCM Microsystems is a leading provider 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 contact and contactless smart card reader technology for secure PC, payment systems, 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 Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com/. About Sony Corporation Sony Corporation is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be the leading electronics and entertainment company in the world. Sony recorded consolidated annual sales of approximately $88 billion for the fiscal year ended March 31, 2008. Sony Global Web Site: http://www.sony.net/ 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 our statements contained above regarding the proposed arrangement between SCM and Sony and SCM's development of FeliCa contactless card readers, including, without limitation, the development and make-up of the initial product portfolio, the development of any future products, the timing of SCM's introduction of any such products, the compliance with various standards or functionality of any such products and the long-term nature of the relationship between the parties. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those contemplated herein. The Memorandum of Understanding is a statement of the intent of the parties and we cannot assure you that we will enter into a final definitive agreement with Sony regarding the terms and conditions under which they would provide support for us to develop FeliCa card readers, in which case we it is unlikely that we would be able to develop or sell any such card readers. In addition, there is no assurance that we will be able to introduce FeliCa card readers to the market within the time frame that we anticipate or at all. 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 for the year ended December 31, 2007 and subsequent reports, filed with the U.S. Securities and Exchange Commission. Note to Editors: FeliCa is a contactless IC card technology developed by Sony Corporation. FeliCa is a registered trademark of Sony Corporation. All other trademarks are the property of their respective owners. DATASOURCE: SCM Microsystems CONTACT: Annika Oelsner, +49 89 9595-5220, , or Darby Dye, +1-510-249-4883, , both of SCM Microsystems Web site: http://www.scmmicro.com/ http://www.sony.net/

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