SCM Microsystems Enters Physical Access Control Market HANOVER, Germany and FREMONT, Calif., March 22, CeBIT /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY), a leading provider of solutions that open the Digital World, today announced plans to enter the physical access control market. The physical access control market includes the cards, readers, terminals and systems used for securing the entry of people into facilities and buildings. SCM plans to introduce a family of physical access control terminals. The announcement was made at the CeBIT exhibition in Hanover, Germany, where SCM is showing prototypes of the new products from March 18 to 24, 2004 in Hall 6, Booth # E10 and Hall 17 Booth # D26. Heightenedsecurity awareness, particularly in the United States, is driving an increase in the use of smart card technology to strengthen the security of identity credentials, building access systems and computer/network access. Smart cards are ideal for this purpose because they are virtually impossible to counterfeit, can replace visual inspection with machine verification, communicate with computers and networks and support biometrics. Millions of smart ID cards are already in use, and the U.S. government is implementing major new smart card initiatives including a common identity credential for all U.S. federal employees and a similar ID for the 12 million plus U.S. transportation workers. "As physical access control migrates to smart cards, the market is becoming more sophisticated and more demanding. These changes created an opportunity for SCM Microsystems," said Robert Schneider, chief executive officer of SCM Microsystems. "Our new line of physical access control terminals will leverage our experience in smart card and security technologies, our investment in smart card ASIC technology and our existing strong channel relationships." To date SCM has shipped several million smart card readers worldwide to major enterprises, financial institutions and government agencies, including more than 1.5 million units through systems integration partners for the U.S. Department of Defense Common Access Card program. The company holds more than 80 relevant patents and participates actively in standards initiatives guiding the changes taking place in the physical access control market. The new product line will support the latest technologies adopted by the physical access control market including contact and contactless smart cards, and it will position companies for fingerprint biometrics going forward. SCM will market the terminals to both government and corporate customers through its existing channel partners, the top-tier OEMs and systems integrators serving the physical access control, smart card and security sectors. SCM plans to announce the first models of the new physical access product line at the 14th annual CardTechSecurTech exhibition in the United States, taking place April 26-29 at the Washington Convention Center in Washington, D.C. 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, Inc. 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, Inc. Web site: http://www.scmmicro.com/

Copyright