Korea's CJ CableNet Selects SCM Microsystems to Provide Digital TV Security Modules FREMONT, Calif., July 22 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) today announced that CJ CableNet of Seoul, Korea, has selected SCM to supply CableCARD(TM) removable security modules to protect its digital TV broadcasts. CJ CableNet plans to deploy the CableCARD modules to its digital TV customers in Korea in the fourth quarter of 2004. Robert Schneider, chief executive officer of SCM Microsystems said, "As one of the leading operators in Korea, CJ CableNet's decision to purchase Digital TV CableCARD modules from SCM demonstrates that momentum is gathering for the new Korean DTV security standard based on the OpenCable(TM) specification." "Like CJ CableNet, SCM is a pioneer in bringing new solutions to the market to offer people the best digital TV experience possible," said Kwan Hoon Lee, chief executive officer of CJ CableNet. "SCM is the first company to make available proven, certified Digital TV security modules for the Korean market. Partnering with SCM allows CJ CableNet to establish an early leadership position in deploying OpenCable-based digital cable services to our customers." CJ CableNet is the multi system operator (MSO) arm of the CJ Group, with the goal of spearheading the transition to a digital media infrastructure in Korea where broadcasting and communication businesses fuse with each other. CJ CableNet began as a local system operator and grew to serve key metropolitan areas including Seoul (Yangcheon Broadcasting), Incheon City (Buk-Incheon Broadcasting), Changwon City and Masan City (Kyungnam Broadcasting & Masan Broadcasting), Kimhae City (Kaya Broadcasting) and Pusan City (Jung-Pusan Broadcasting & Haewoondae Broadcasting) and now provides a wide variety of value added services including specialized cable TV channels and high-speed Internet access directly to its subscribers. SCM's CableCARD security modules for CJ CableNet incorporate the NDS VideoGuard(R) broadcast security system. The Digital TV Market in Korea The Korean government is preparing to deploy digital cable television to between six and nine million households in Korea over the next several years. In November 2001, the 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 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 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 CJ CableNet CJ CableNet, a leading multi-system operator (MSO) in Korea with 1.2 million subscribers, provides high-speed Internet services, as well as numerous cable TV channels through 7 system operators. CJ CableNet is in the process of establishing its digital cable system based on OpenCable-OCAP. The digital system will provide 90 TV channels, 40 digital audio channels, NVOD, SVO, EPG, and other OCAP-based interactive television services. For more information, please visit http://www.cjmso.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 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: CableLabs, CableCARD and OpenCable are trademarks of Cable Television Laboratories, Inc. VideoGuard is a registered trademark of NDS Group plc. All other 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:/// http://www.cjmso.com/ Web site: http://www.scmmicro.com/

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