SCM Microsystems a Major Supplier of Common Interface Chip Technology for Set-Top Boxes

SCM Microsystems a Major Supplier of Common Interface Chip Technology for Set-Top Boxes

Open Digital TV Platform Gains Increasing Importance

FREMONT, Calif., Aug. 24 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (NASDAQ:SCMM)(NASDAQ:Prime)(NASDAQ:Standard:)(NASDAQ:SMY), a leading provider of solutions that open the Digital World, today announced that year-to-date 2005, it has sold 1.2 million of its CiMaX(R) common interface (CI) controller chips -- already exceeding the number sold in 2004. This growth in sales reflects the growing importance of common interface technology as a global solution for protecting access to encrypted digital TV content across multiple reception platforms and broadcasting systems.

Since 2000, SCM Microsystems has supplied 6.5 million of its patented CIMaX CI controller chips to manufacturers of set-top boxes and integrated digital television sets (iDTVs). Including the controller chips licensed to major semiconductor companies, SCM has provided more than 16 million CIMaX chips to the marketplace. These chips enable consumer electronics manufacturers to quickly and easily integrate common interface slots into their digital TV receivers and iDTVs. The CI slots allow the set tops and iDTVs to accept standards-based conditional access modules that work together with each operator's security software to authenticate subscribers and decrypt the broadcast content as it is received. SCM's CIMaX controller chips make it possible to control up to two CI slots, providing consumer electronics manufacturers with an innovative and cost-effective way to create CI-enabled devices. SCM's controller chips work with the European DVB-Common Interface standard as well as the OpenCable(TM) CableCARD(TM) standard used in the U.S. and South Korea.

"The growing demand for LCD and plasma TVs with integrated digital receivers is driving manufacturers to look for faster, better, cheaper ways to incorporate removable security into their devices. Common interface technology perfectly addresses this need," said Colas Overkott, Executive Vice President of Sales and Marketing of SCM Microsystems. "SCM's CIMaX controller chips make it easy for manufacturers to create CI-enabled DTV receivers and avoid the costly and time consuming process of integrating security software into their products."

"Record sales of our CIMaX controller chips this year emphasize the growing importance of common interface technology in the digital television market," commented Robert Schneider, chief executive officer of SCM Microsystems. "CI technology ensures that your new iDTV will work with whatever service you choose and that your set-top box can move with you when you change operators. Consumer electronics manufacturers are increasingly committing themselves to supporting this open systems approach for DTV decryption."

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.

NOTE: CIMaX is a registered trademark of SCM Microsystems and 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, +49-89-95-95-5140, or mmueller@scmmicro.de, or
Darby Dye, +1-510-360-2302, or ddye@scmmicro.com, both of SCM Microsystems,
Inc.

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

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