Qrix Communications Selects SCM Microsystems to Provide CableCARDS for Korean Digital TV FREMONT, Calif., June 3 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) today announced that it has signed its fourth customer for OpenCable(TM)-compliant CableCARD(TM) modules in South Korea, the cable operator Qrix Communications. The Qrix module incorporates the Nagravision conditional access (CA) system and will be used to protect cable pay-TV content from piracy. "SCM's CableCARD solution is the only one that enables us to immediately deploy the required OpenCable(TM) technology," said Duke Lee, managing director of Qrix Communications. "SCM is helping us to experience the benefits of open technology and to affordably provide more services to our customers." Qrix Communications boasts 520,000 subscribers and is pushing to be among the first cable operators in South Korea to launch a full range of interactive services, including video on demand (VOD), subscription video on demand (SVOD) and interactive pay-per-view (IPPV). Qrix plans to begin rolling out these new services in the Seoul metro area in the first half of 2005. Robert Schneider, chief executive officer of SCM Microsystems, commented, "As the pioneer of removable security, SCM developed our CableCARD modules based on years of experience working with the OpenCable standard. We believe that it will enhance the profitability of market participants and allow consumers greater choice as digital TV is rolled out in South Korea." Pierre Roy, chief operating officer of Nagravision, said, "We are happy to offer to our existing conditional access system customer Qrix, in collaboration with SCM, a CableCARD solution compatible with the requirements of the Korean government." The Digital TV Market in Korea The South Korean government is deploying digital cable television to between six and nine million households in South 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 Qrix Communications Qrix Communications is the one of the largest cable operators in South Korea that delivers digital broadcasting and high-speed internet access in Seoul. A recognized leader in the Korean broadband market, the company is well-known and regarded as an early adopter of new technologies in order to provide advanced services to its customers. Qrix Communications introduced digital broadcasting services in early 2004 with Digital Multimedia Center (DMC). The company's advanced service will offers customers additional advantages with interactive services such as VOD, T-game and T-Government. About Nagravision Nagravision (http://www.nagra.com/), a Kudelski Group company, is the world's leading independent supplier of open conditional access and integrated solutions for digital TV operators and content providers. Its technologies are currently being used by more than 100 leading operators worldwide serving over 50 million subscribers. 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 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, Inc. Web site: http://www.scmmicro.com/

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