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Top Up TV Taps SCM Microsystems for Digital TV Security Modules ISMANING, Germany and FREMONT, Calif., May 18 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. announced today that U.K. digital TV start up Top Up TV has selected SCM to supply security modules using the Nagra conditional access security system for its new digital broadcasting service in the U.K. Delivery of the modules, which will be used to securely decrypt Top Up TV broadcasts, will begin in May 2004. "With the modules provided by SCM, we see a great opportunity to enable U.K. consumers with integrated digital televisions and those with compatible Common Interface set-top boxes to be able to watch additional channels on Top Up TV. This technology moves digital TV through your aerial to a new stage, and we see the benefits of using Common Interface and removable security modules to help us get there," said Ian West, vice-chairman and chief executive officer of Top Up TV. "SCM's reputation for technology leadership, high quality and customer satisfaction over many years of providing security to the broadcast industry was the main reasons we selected them as our partner." Top Up TV is a great example of how the Common Interface (CI) standard gives consumers more choices, providing subscribers with 10 additional high quality channels for the price of just 7.99 pounds Sterling per month. Top Up TV is the U.K.'s first venture into multi-channel pay TV after the launch of Freeview in 2002. Top Up TV was able to take advantage of the existing installed base of ex-ITV Digital (On Digital) receivers, estimated to be in the region of 600,000-800,000 units, by using the receivers' built-in security hardware with compatible security modules from SCM. Many other digital receivers and IDTVs also currently allow the use of security modules to decrypt broadcast content, meaning consumers can also purchase new devices to receive Top Up TV. Currently compatible devices include the majority of IDTVs and set-top boxes, such as the Nokia 221 and Netgem I-player, with manufacturers bringing more and more models to market that will be able to take advantage of the new Top Up TV service. "Top Up TV has an innovative service-pricing package that requires strong security and leverages a ready base of consumers. Seizing this type of opportunity is precisely why we've positioned our line of digital TV security modules for the Common Interface," said Robert Schneider, chief executive officer of SCM Microsystems. "Today the U.K. leads in using this model, but we see this as a trend that has global appeal." U.K. distributor Turbosat has been chosen to manage the sale of Top Up TV security modules in the U.K. through major retailers such as Dixons Stores Group. SCM has already received an initial order of 10,000 Top Up TV modules from Turbosat. More than half of the 24.3 million U.K. households now receive digital TV. The U.K. has been seeing very strong demand in digital terrestrial set-top box sales, with 2003 holiday sales rising to 500,000 units and 866,000 households for that quarter, resulting in around 3 million digital terrestrial households by January 2004. The U.K. digital terrestrial television installed base is expected to continue rising rapidly with an additional 7 million households converting by 2007. U.K. IDTV sales have continued to grow, with prices dropping by an average of 93 pounds between March and December 2003. Global sales of IDTVs are expected to rise from 17.4 million units in 2007 to 116 million units in 2015, by which time the majority of TVs will include a digital tuner. 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 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 trade names are either trademarks or registered trademarks of their respective holders. DATASOURCE: SCM Microsystems CONTACT: Manfred Mueller of SCM Microsystems, +49-89-95-95-5140, 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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