BSI Selects SCM Microsystems and NDS to Provide OpenCable CableCARD Solution For Korean Digital Cable TV FREMONT, Calif., May 3 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) and NDS Group plc. today announced that Broadband Solutions Inc. (BSI) of Seoul, Korea, has become the first Korean digital television operator to select SCM's CableCARD(TM) removable security module, incorporating NDS VideoGuard(R) conditional access system. SCM and NDS were recently awarded certification by the Telecommunications Technology Association (TTA) of Korea for compliance with the Korean OpenCable(TM) standard for digital cable television broadcasts. Signing the first Korean operator demonstrates the success of the cooperation between NDS and SCM to provide cable operators in Korea and the U.S. with proven, reliable and cost-effective solutions based on the CableLabs(R) OpenCable CableCARD interface specification. BSI's deployment in Korea is the first substantial OpenCable rollout in the world, involving significantly more than 150,000 units over a period of about 18 months. "BSI selected SCM as it provides the proven, competitive CableCARD solution to immediately deploy the required OpenCable technology," said S.Y. Lee, chief technology officer of BSI. Operating one of the largest digital media centers in Korea, BSI's services include aggregating digital video and managing the end-to-end infrastructure for the delivery of DTV broadcasting from the head-end to the home. The company is at the forefront of the digital broadcasting rollout in Korea. Dacom, Korea's second largest communications service provider, committed an investment of US$20 million in BSI to create a strategic partnership between BSI and Dreamcity Media, one of Korea's largest cable operators. In 2004, BSI plans to construct regional digital broadband media centers controlled by a centralized digital head-end. Initially these centers will serve the Dreamcity Media cable TV network, followed by Gangnam Cable TV and eventually aggregating additional cable TV networks. Robert Schneider, chief executive officer of SCM Microsystems said: "The BSI deployment in Korea uses SCM technology that is based on years of experience in working with the OpenCable standard and with NDS. It demonstrates conclusively that SCM's technology is able to immediately and competitively support the business requirements of one of Korea's largest cable TV digital media centers. We believe that BSI and other operators will reap the benefits of the open technology and the greater choices these modules will bring to their customers." Sue Taylor, vice president and general manager, NDS Asia Pacific, added, "This agreement with BSI, and the rapid deployment our companies will achieve together, pave the way for further deployments of our CableCARD solution to operators throughout Korea, as part of the cooperation agreement between the NDS and SCM. NDS is the first conditional access vendor to deploy a commercial implementation of OpenCable in Korea." 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. 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 -- that can be sold at retail locations. Eventually, 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 OpenCable CableCARD interface specification used in the U.S., the Korean security modules will not operate with U.S. OpenCable devices, nor vice versa, for regional security purposes. The software specification, known as the OpenCable Application Platform (OCAP), 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. About Broadband Solutions Inc. Broadband Solutions Inc. is a leading provider of broadband services such as digital cable TV, interactive TV and High Speed Internet Access Service to cable TV system operators in Asia. Broadband Solutions provides a comprehensive suite of media and network service, hosted DTV and interactive TV applications and services. Serving cable TV operators, BSI facilitates the swift and cost-effective deployment of enhanced services like interactive TV, video on demand, telephony, broadband internet and "walled garden" content. BSI engages best-of-breed technology partners to make the most economically compelling and technologically advanced solutions available to the Korean cable TV operators. Broadband Solutions Inc. is a Korean company, with headquarters in Seoul. For more information, visit http://www.bsiasia.com/ About NDS NDS Group plc (Nasdaq: NNDS; Euronext Brussels) is a leading provider of open end-to-end digital pay-TV solutions for the secure delivery of entertainment and information to television set-top boxes and IP devices. See http://www.nds.com/ for more information about NDS. 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: 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, 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 Web site: http://http//www.nds.com Web site: http://www.bsiasia.com/ Web site: http://www.scmmicro.com/

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