SCM Microsystems Garners 2004 Frost & Sullivan Technology Leadership Award

SCM Microsystems Garners 2004 Frost & Sullivan Technology Leadership Award

LONDON, April 18/PRNewswire/ -- The 2004 Frost & Sullivan Technology Leadership Award is presented to SCM
Microsystems, Inc. (NASDAQ: SCMM, Prime Standard: SMY) for its pioneering
innovations in the world pay TV equipment market. SCM is lauded for
developing cutting-edge, removable conditional access modules for the global
digital TV market- technology that has enhanced the profitability of market
participants even as it has allowed consumers greater choice.

The traditional practice of having the security software embedded within
the set-top box has left operators and consumers vulnerable to hackers with
replacement often the only alternative for boxes whose security has been
compromised. SCM's path-breaking 'removable security' technology, however,
allows the security modules to be plugged into any set-top box with a common
interface slot.

A global leader in smart card reader technology, SCM's removable security
module has been developed on the established PCMCIA standard. Leveraging its
accumulated intellectual property on PCMCIA, the company developed the high
security crypto application specific integrated circuits (ASIC) for digital
TV applications.

Having played a key role in developing digital video broadcasting (DVB)
standard used in Europe and the OpenCable(TM) standard for the United States
and now South Korea, SCM's technology is compatible with both the standards.

Being a pioneer in the removable security segment and a solution provider
who supports both types of standards in the market, SCM's platform has been
embraced across all key regions where pay TV has reached.

Working closely with conditional access (CA) providers, pay TV operators
and set-top box manufacturers, SCM's R&D intensive focus has enabled it to
design and develop test tools for countries considering the introduction of
conditional access systems. Paralleling the industry's evolving
security-critical needs, SCM is currently offering its fifth generation of
products.

"From allowing consumers to choose among multiple brands of set-top boxes
offering a range of features and functions, and ensuring that the devices
they buy will be able to access the region's pay TV content, SCM's
innovations stand to benefit consumers immensely," notes Frost & Sullivan
Research Analyst Karthik Nagarajan.

"We are honored that Frost & Sullivan has recognized SCM's years of
achievement in digital pay-TV technology with this award," commented Robert
Schneider, chief executive officer of SCM Microsystems. "Like SCM, Frost &
Sullivan has a reputation for creating innovative solutions to address
evolving market needs. We look forward to continued success and achievement
for both companies in the years to come."

Apart from providing copy protection for the content, SCM's module also
provides parental control features and filtering features that protect the
flash memory from being hacked. The common interface (CI) standard that
provides the basis for the removable security module design gives consumers
the choice of viewing multiple channels at a low cost.

Moreover, the recent launch of 'SIM-CAM' - a pioneering dual card product
- is expected to enable consumers to access two pay TV offerings using a
single access module. Such technological breakthroughs are poised to promote
innovation in the set-top box market, and make it more competitive.

"SCM's leadership in the conditional access module market derives from
its extensive R&D investments and its involvement with the market at various
parts of the value chain, right from the development of standards to
designing of components," comments Mr. Nagarajan. "With the global success of
its innovations, SCM is all set to play a pivotal role in designing the
future of the pay TV industry."

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 Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering
with clients to support the development of innovative strategies for more
than 40 years. The company's industry expertise integrates growth consulting,
growth partnership services and corporate management training to identify and
develop opportunities. Frost & Sullivan serves an extensive clientele that
includes Global 1000 companies, emerging companies, and the investment
community, by providing comprehensive industry coverage that reflects a
unique global perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics. For more information, visit
http://www.frost.com

For further information, please contact:

Janina Hillgrub
Corporate Communications
Frost & Sullivan
Clemensstrasse 9
60487 Frankfurt/Main
Germany

Phone: +49-(0)69-770-33-11
Fax: +49-(0)69-23-45-66
EMail: Janina.Hillgrub@frost.com

http://www.awards.frost.com

Source: Frost & Sullivan

For further information, please contact: Janina Hillgrub, Corporate Communications, Frost & Sullivan, Clemensstrasse, 60487 Frankfurt/Main, Germany, Phone: +49-(0)69-770-33-11, Fax: +49-(0)69-23-45-66, EMail: Janina.Hillgrub@frost.com

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