KDMC Selects SCM Microsystems to Provide CableCARDS for Korean Digital TV

KDMC Selects SCM Microsystems to Provide CableCARDS for Korean Digital TV

FREMONT, Calif., Nov. 10 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (NASDAQ:SCMM); Prime Standard: SMY) today announced that it has been selected by Korea Digital Cable Media Center Co., Ltd. (KDMC), South Korea's largest digital cable service provider, to supply OpenCable(TM) compliant CableCARD(TM) modules for the deployment of new pay-TV services.

SCM will begin supplying CableCARD modules to KDMC in December as KDMC begins to transition its more than two million subscribers from their current analog service to new digital and interactive services, including digital TV, PPV, VoD and interactive data broadcasting. The modules incorporate the NDS VideoGuard(R) conditional access (CA) system and will be used to protect cable pay-TV content from piracy.

SCM and NDS have conducted extensive interoperability testing with the Korean set-top manufacturers selected by KDMC, including Humax Co. Ltd. and Samsung Electronics Co. Ltd.

"SCM's commitment to the OpenCable standard and its abilty to work closely with CA partners such as NDS give us assurance that SCM is providing the best solution available, both today and in the future," said Mr. Park Seong-Duck, president of KDMC.

Robert Schneider, chief executive officer of SCM Microsystems commented, "SCM has made significant investments to develop OpenCable compliant CableCARD modules for the emerging digital cable market in Korea. KDMC is now the fifth South Korean MSO to select SCM technology, giving SCM the leading position in this market. We look forward to working with KDMC to deploy CableCARD modules so that their subscribers can experience the benefits of digital and interactive broadcasting."

The Digital TV Market in Korea

The South Korean government is deploying digital cable television to between six and nine million households in South Korea over the next several years. In November 2001, the South 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 South 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 South 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 KDMC

Korea Digital Cable Media Center Co., Ltd. (KDMC) aims to use digital broadcast technology to secure and enhance its position as a leading systems operator in South Korea. The company currently is deploying new high-quality, high-definition multi-channel digital cable broadcasting services to its 2 million subscribers throughout South Korea. KDMC's investment in its high-speed multimedia broadcasting/ telecommunication fusion network creates an information infrastructure that is a powerful platform for Digital Home Networking (DHN) and new media and telecommunications services. For more information, visit KDMC's website at www.kdmctv.co.kr.

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: OpenCable and CableCARD are trademarks and CableLabs is registered trademark 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.kdmctv.co.kr/

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

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