Korea's Jeju Broadcasting Selects SCM Microsystems and Conax to Provide OpenCable CableCARD Solution for Digital Cable TV

Korea's Jeju Broadcasting Selects SCM Microsystems and Conax to Provide OpenCable CableCARD Solution for Digital Cable TV

FREMONT, Calif., Feb. 25 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) today announced that KCTV Jeju Broadcasting of Jeju Island, Korea has selected SCM's CableCARD(TM) removable security module, incorporating the conditional access (CA) system from Conax AS. In making this selection, Jeju Broadcasting becomes the first independent CATV system operator to build a digital broadcasting system.

"Jeju Broadcasting selected SCM because its proven, competitive CableCARD solution enables us to immediately deploy the required OpenCable(TM) technology," said Mr. S.Y. Kong, Chairman of Jeju Broadcasting. "With SCM's and Conax's help, we hope to become a model for successful DTV conversions of independent cable operators and trigger other single system operators to make the same decision."

Jeju Broadcasting's OpenCable rollout involves 100,000 units with 30,000 to 50,000 expected for 2005. Jeju, which has more than 160,000 customers, has test broadcast 100 digital channels since November 1 of last year. In the second phase starting April 15, 2005, Jeju plans to add other digital services such as an electronic program guide, video on demand and music channels.

Robert Schneider, chief executive officer of SCM Microsystems, said, "The Jeju Broadcasting deployment in Korea uses SCM technology that is based on years of experience working with the OpenCable standard. We believe that Jeju and other operators will reap the benefits of the open technology and the greater choices these modules bring to their customers."

Raza Ansari, VP Asia for Conax, added, "This agreement with Jeju Broadcasting positions our companies to achieve a rapid deployment together, and this will pave the way for further deployments of our CableCARD solution to operators throughout Korea."

SCM and Conax have worked closely with the Telecommunications Technology Association (TTA) of Korea to achieve final compliance with the Korean OpenCable standard for digital cable television broadcasts.

The Digital TV Market in Korea

The Korean government will be deploying 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. 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. 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 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 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 www.scmmicro.com.

About Conax

Conax AS 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 50 countries. Their headquarters are in Oslo, Norway, with subsidiaries in India and USA and sales and support offices in Singapore, China, Brazil, Korea, Pakistan, Germany and Canada. Conax is ISO 9001 and BS7799 certified. For more information please visit www.conax.com.

About KCTV Jeju Broadcasting

KCTV (Korea CableTV) Jeju Broadcasting is a sole and pioneering CATV operator in Jeju Island with 160,000 subscribers. Located in a world famous Free International City with high rising tourism, it may well have higher potential for VOD and other digitized services, and is attracting keen interest and observation by policy making organs and other CATV operators.

NOTE: OpenCable and CableCARD are trademarks of Cable Television Laboratories, Inc. (CableLabs). All other trade names are either trademarks or registered trademarks of their respective holders.


Source: SCM Microsystems, Inc.

CONTACT: Manfred Mueller of SCM Microsystems, Inc., +49 89 95 95 5140,
or mmueller@scmmicro.de; or Deb Montner of Montner & Associates,
+1-203-226-9290, or dmontner@montner.com, for SCM Microsystems, Inc.

Web site: http://www.scmmicro.com/


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