SCM Microsystems to Supply CableCARD(TM) Digital TV Decryption Modules for South Korea's Third Largest MSO
March 22 2006 - 2:30AM
PR Newswire (US)
SCM Signs Comtech Korea Corp. as Sixth Korean Digital TV Customer
FREMONT, Calif., March 22 /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 signed a contract with Comtech Korea Corp. to supply
70,000 OpenCable(TM) compliant CableCARD(TM) digital TV decryption
modules for deployment to CMB DMC, the third largest MSO in Korea.
Comtech, which is one of South Korea's largest systems integrators
in digital broadcasting, has been working with CMB DMC since 2005
to plan and implement the roll out of digital equipment and
services to the operator's subscriber base of two million. SCM
estimates that the modules ordered by Comtech for CMB DMC will be
required and shipped over the next one and a half years. SCM's
CableCARD modules will be used in conjunction with cable set-top
boxes in subscribers' homes to decrypt broadcast signals from CMB
DMC. The modules incorporate the conditional access (CA) security
system from Conax AS. CMB DMC has installations in five cities,
with a potential subscriber base of two million. CMB DMC launched
trials of their pay-TV and call-based event PPV services at the end
of 2005, with commercial service following in early 2006. They plan
to expand the services to Real Video-on-Demand and advanced
bi-directional data broadcasting in May 2006. "As co-creators of
the OpenCable standard and an early participant in the industry,
SCM is clearly committed to the emerging South Korean digital
television market. The company's dedication and proven ability to
work with all players involved to ensure successful and cost
efficient deployments for operators made them an easy choice for
us," said Mr. Young Kyu Kim, vice president, Comtech Korea Corp.
"The contract with Comtech is another important milestone in SCM's
strategy in Korea," said Robert Schneider, chief executive officer
of SCM Microsystems. "After years of preparation, the transition
from analog to digital broadcasting in South Korea is now off to a
strong start. We are pleased to be chosen by one of Korea's top
integrators to supply CableCARD modules to one of the largest MSOs
and look forward to a long and successful relationship." Comtech is
the sixth integrator or operator in South Korea to choose SCM's
CableCARD modules. Other customers include Broadband Solutions
Inc., CJ CableNet, KCTV Jeju Broadcasting, Korea Digital Cable
Media Center Co. and Qrix Communications. The Digital TV Market in
South Korea The South Korean government is expected to oversee
deployment of digital cable television to between eight and twelve
million households 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 Comtech Korea
Corp. Comtech Korea Corp., which was founded in 1991, is focusing
on offering system integration of digital broadcasting solutions
and convergence for the CATV, satellite, terrestrial, IP and mobile
markets in Korea. In addition to providing their own solution for
Digital Audio Broadcasting (DABS),NVOD and Interactive Monitoring
Solution (IMS), they have partnership agreements with solution
vendors supplying billing/SMS, STBs, middleware, digital H/E system
and conditional access. For additional information, please visit:
http://www.comtech.co.kr/. About CMB DMC CMB DMC, which was founded
in 1994, is a consortium with 12 cable operators having 2 million
end-users in Korea. As the third largest MSO, it is leading the way
to create a new business model, focusing on end-users'
satisfaction, offering better quality of content and value-added
services such as VOD and Data Broadcasting services. Based upon
technology from vendors like Conax, SkyStream, SCM, Samsung and IM
Neptia, they will also offer their digital services and expertise
to other regions in Korea. Chairman of the company is Mr. I.S. Lee.
About Conax Conax is a leading supplier of state-of-the-art, highly
innovative solutions for smart card-based conditional access,
security and payment solutions. Conax is a globally oriented
player, with a solid base of clients in 60 countries. The head
quarters are in Oslo, Norway, with subsidiaries in India and USA,
and sales & support offices in Singapore, China, Canada, South
Korea, Brazil and Germany. Conax is ISO 9001 and BS7799 certified.
For additional information, please visit: http://www.conax.com/.
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 its smart card reader technology for
PC, 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
website at http://www.scmmicro.com/. 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 statements regarding our expectations for
orders and shipments of our digital TV modules related to Comtech
and the use of our modules by CMB DMC. 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: orders for our
products may not be as large, or within the time frame that we
currently contemplate; demand for products such as ours may not
develop as we and our customers currently contemplate; competitors
could take market share or create pricing pressure. 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, 2005
filed with the U.S. Securities and Exchange Commission. DATASOURCE:
SCM Microsystems CONTACT: Manfred Mueller, +49 89 95 95 5140, or ,
or Darby Dye, +1-510-360-2302, or , both of SCM Microsystems Web
site: http:/// http://www.comtech.co.kr/ Web site:
http://www.conax.com/ Web site: http://www.scmmicro.com/
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