SCM Microsystems' Security Modules for Digital Pay-TV Earn 2004 Frost & Sullivan Technology Leadership Award

SCM Microsystems' Security Modules for Digital Pay-TV Earn 2004 Frost & Sullivan Technology Leadership Award

FREMONT, Calif., April 18 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) a leading provider of solutions that open the Digital World, today announced that it has received the prestigious Technology Leadership Award for 2004 from global growth consulting firm Frost & Sullivan for its pioneering innovations in the world pay TV equipment market. In presenting the award, Frost & Sullivan lauded SCM 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 embedding security software within the television 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 innovative 'removable security' technology, however, allows the security modules to be plugged into any set-top box with a common interface (CI) slot. CI-enabled set-top boxes and integrated digital televisions are an increasing trend worldwide and particularly within Europe.

SCM based its removable security module on PCMCIA technology and leveraged its accumulated intellectual property around PCMCIA to develop the high-security crypto application specific integrated circuits (ASICs) for digital TV applications. The company played a key role in developing the digital video broadcasting (DVB) standard used in Europe and the OpenCable(TM) standard for digital broadcasting in the United States that also has been adopted in South Korea. SCM's technology is compatible with both the standards and currently is offering its fifth generation of products. To date, the company has shipped more than seven million security modules for digital TV decryption.

"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. 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," commented Frost & Sullivan Research Analyst Karthik Nagarajan.

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/ .

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 PC, 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: All company and/or product names are trademarks or registered trademarks of their respective owners.

Source: SCM Microsystems, Inc.

CONTACT: Dr. Manfred Mueller, +49 89 9595 5140, or mmueller@scmmicro.de, or Darby Dye, +1-10-360-2302, or ddye@scmmicro.com, both of SCM Microsystems, Inc.

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

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

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