SCM and Nagravision Achieve DTV Security Module Certification in Korea FREMONT, Calif. and CHESEAUX, Switzerland, April 2 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) and Nagravision S.A. today announced they achieved certification of removable security modules for the Korean digital television market. The security model is based largely on the CableLabs(R) OpenCable(TM) CableCARD(TM) interface specification, as used in the U.S. market. The SCM security module is the first hardware platform certified against the specification in Korea. The groundbreaking certification of the Nagravision conditional access system on the SCM security module opens the door for both companies to begin deliveries of conditional access modules and systems. The Korean government, which selected the OpenCable standard, projects that the DTV market will grow to as many as nine million households over the next several years. SCM and Nagravision developed and manufactured the security module following the OpenCable specifications, then worked together to implement the Nagravision conditional access system on it. The CableCARD device is ready for deployment and will be available to cable operators within the next three months. The CableCARD for Korea is based on a proven hardware and software platform that SCM developed, and both companies expect to begin volume deliveries in Korea over the next one to two years. SCM and the Kudelski Group, the corporate parent of Nagravision, have a long experience of jointly providing CAMs to operators in Europe. The Telecommunications Technology Association (TTA), a non-governmental IT standards setting body in Korea, conducted the evaluation and issued the certification, the first such certification awarded outside the United States. "TTA's testing facilities and expertise are crucial to the success of Korea's transition to digital broadcasting technology. It is the only way to ensure these products meet users' needs, conform to standards and provide interoperability," said In Sup Cho, managing director of TTA. "Nagravision was the first supplier of conditional access systems (CAS) to the Cable Industry in Korea, so we are clearly delighted to be the pioneer CAS vendor to achieve TTA certification for our security module. The achievement of this significant milestone is further evidence of our R & D investment in the Korean market and also strengthens our position as the leading supplier of Tier 1 Conditional Access Systems in Asia," said Peter Iannazzo, vice president sales Asia Pacific, Nagravision S.A. "Korea is the first nation to launch advanced digital cable TV services based on OpenCable. It has the unique opportunity to establish an industry that is profitable for all participants, while offering consumers real choice," said Robert Schneider, chief executive officer of SCM Microsystems. "Korea has a wealth of progressive companies that are eager to establish themselves, at home and in the West. Adopting OpenCable will help to ensure that Korea can maintain technological cohesion with the United States." Building on its commitment to the development of digital cable in Korea, SCM will partner with Korean manufacturers over the next several years to make the security modules locally. To support broad deployment by Korean cable operators, SCM plans to drive the quantity price of these modules to as low as $20 during 2005. The Digital TV Market in Korea In November 2001, the Korean government selected OpenCable as the technical standard for securing the country's digital cable TV broadcasts. OpenCable, originally developed by Cable Television Laboratories Inc. (CableLabs) for the North American cable TV market, includes both hardware and software specifications. One important feature of the standard is the CableCARD interface specification. Unlike earlier generation set-top boxes, this removable security module provides interoperability with multiple cable systems. It is a small device, like a PCMCIA card for a laptop computer, so it can be sold at retail locations. Digital televisions will also accept the CableCARD module directly, eliminating the need for a set-top box. 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. Although the Korean security module is based on the same U.S. OpenCable CableCARD interface specification, the Korean security modules will not operate with U.S. OpenCable devices, or vice versa, for regional security purposes. The software specification, known as the OpenCable Application Platform (OCAP(TM)), provides a common software environment for deploying interactive services. In February 2002, the Korean government also mandated that cable operators adopt the OCAP standard, a decision that cable operators, vendors and related organizations supported unanimously. Digital cable TV broadcasting services in Korea are scheduled to begin during 2004. Korean consumer electronics manufacturers are working on a fast track to build OpenCable- and OCAP-based devices in order to meet this schedule and satisfy market demand from both cable operators and consumers. AboutTTA Since the establishment in 1988 of the Telecommunications Technology Association (TTA), a non-governmental IT standards setting body, it has been contributing as a member of international standards organizations as well as setting Info-Communication standards in Korea. Moreover, since December 2001, TTA has been providing one-stop services, from the establishment of IT standards to the testing and certification for IT standards products. TTA is promoting the participation of industry in standardization and also intensifies the collaboration with international and national standards organizations such as ITU, ETSI, T1, TTC, ARIB, TSACC and ACIF. TTA has a partnership with CableLabs for OpenCable standardization and testing based on MoU signed at October 2002. TTA also has a business partnership with the world's leading testing organizations, The Tolly Group (http://www.tolly.com/) and VeriTest of LionBRIDGE (http://www.veritest.com/) in the U.S. For additional information, visit the TTA website at http://www.tta.or.kr/. About Nagravision S.A. Nagravision (http://www.nagra.com/) is the world's leading independent provider of Open Conditional Access, advanced management tools and integrated solutions for cable, satellite, terrestrial and MMDS, FTTH and xDSL operators worldwide. Designed for the Digital Pay TV, Pay Media over broadcast and Broadband Networks, Nagravision's Conditional Access systems provide an easy-to-use interface for controlling customer access rights and managing smartcard based security in set-top boxes and other devices. Nagravision's solutions provide Digital TV and content providers with the tools to operate and manage a range of interactive services that include e-commerce, interactive program guides and multimedia-on-demand including VOD. Based on open standards, they can easily be upgraded with new functions and are scalable from one to several million subscribers. Nagravision's Digital and Analog Conditional Access technologies are currently being utilizedby leading operators worldwide representing over 35 million Digital and Analog subscribers. Nagravision is a division of the Switzerland-based Kudelski Group (SWX "KUD") and has offices in the United States, Singapore, China (Beijing and Shanghai), Brazil, Spain, UK, France, Germany and Switzerland. 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 trademarks are the property of their respective holders. CableLabs, CableCARD,DOCSIS and OpenCable are trademarks of Cable Television Laboratories, Inc. DATASOURCE: SCM Microsystems, Inc. CONTACT: Dr. Manfred Muller, +49 89 9595 5140, or , or Allan Phua, +65 65515233, or , both of SCM Microsystems; or Deb Montner of Montner & Associates, +1-203-226-9290, or , for SCM Microsystems; or Ivan Schnider of Nagravision HQ, +41 21 732 0940, or ; or Anita Pang of Nagravision Asia, +65 6831 9339, or Web site: http://www.tta.or.kr/ Web site: http://www.nagra.com/ Website: http://www.scmmicro.com/

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