SCM Microsystems Teams With Nokia to Develop
Terrestrial Broadband Receiver For the PC
Leading Secure Access Company Announces Third Leg of Broadband Strategy
HANNOVER, Germany, CeBIT, Feb. 24 /PRNewswire/ -- SCM Microsystems, Inc. (Nasdaq: SCMM, Neuer Markt:
SMY), a leading provider of solutions that open the Digital World, today announced the development of a digital terrestrial
receiver to enable the secure reception of broadband content via the PC. The new product complements SCM's existing family of satellite and cable-ready broadband receivers, and will be developed in cooperation with Nokia's Multimedia Terminals Group. The PC digital terrestrial receiver will be available in prototype versions before the middle of the year;volume production is planned for the second half of 2000.
The PC terrestrial receiver is the third component in SCM Microsystems' strategy to develop and deliver receivers to
enable secure broadband access from the PC. In September, SCM initiated its broadband roadmap with the introduction of
the St@rKey PC satellite receiver, which enables secure delivery of high speed data over the low cost, ubiquitous satellite
network. In December, SCM demonstrated the second milestone in its strategy, a PC cable-ready receiver for interactive
services, which it is developing together with Microsoft and Philips Semiconductor. Today's announcement of a PCterrestrial receiver completes the first generation of broadband products in SCM's strategic roadmap and leverages the convenience and mobility of the terrestrial television network.
Utilizing the same conditional access technology used in the digital pay-TV environment, SCM Microsystems' new broadband PC terrestrial receiver provides the security needed to make terrestrial broadband applications attractive to both operators and PC users. Operators can securely deliver custom Internet services to a subscriber base, and mobile professionals such as delivery fleets or regional salespeople can easily access customized Internet content via the digital
terrestrial network.
''SCM Microsystems has led the industry in opening up the set top box to enable standards-based access to protected digital TV content,'' said Robert Schneider, SCM Microsystems chief executive officer. ''Now we are opening the PC with a broadband receiver, paving the way for new applications and services delivered over terrestrial, satellite and cable networks. Development of a PC terrestrial receiver marks the successful beginning of a cooperation with Nokia Multimedia
Terminals.
Together, we will be able to combine the benefits of state-of-the-art receiver technology with secure access, and better leverage the terrestrial network infrastructure to deliver broadband data.''
''Nokia's Multimedia Terminals Group is committed to low cost and convenience for the end user and we are excited about the new opportunities provided by a terrestrial broadband receiver for the PC,'' said Dr. Helmut Stein, CTO of Nokia Multimedia Terminals. ''Nokia enjoys a close and successful relationship with SCM Microsystems, and we're pleased to be working with them on technology that will enable new business applications such as push Internet services and streaming video/audio.''
Development of the PC terrestrial receiver will benefit from SCM Microsystems' expertise in both PC peripheral and digital
TV security interface technologies, as well as Nokia's expertise in advanced digital TV/terrestrial tuner and wireless
technologies. The new product builds on the modular architecture of SCM's St@rKey PC satellite receiver, which enables
easy integration of Nokia's radio frequency (RF) technology without changing the remaining features and drivers. In its initial
version, the PC terrestrial receiver will provide secure access via a standard smart card interface for secure e-commerce
and an optional DVB Common Interface to plug in a digital TV conditional access module.
About Nokia
Nokia is paving the way to the mobile information society with its innovative products and solutions. The company is the
leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks, related services as well as
multimedia terminals. In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland,
Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs
more than 55 000 people.
About SCM Microsystems
SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access
secure digital content and services. The company operates in three primary markets -- Digital TV, PC Security and Digital
Appliances. SCM's advanced silicon solutions, hardware and software enable secure exchange of electronic information for
applications such as e-commerce and broadband content delivery by providing controlled access points to platforms such
as PCs, Internet music players, and digital television set-top boxes. Global head quarters are in Los Gatos, Calif., with
European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems Web site at
www.scmmicro.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934 about the expected results of the cooperation between
SCM Microsystems and the Multimedia Terminals Group of Nokia to develop a digital PC terrestrial receiver. Forward
looking statements include: the ability of the receiver to securely access content from the PC; initial availability of the
receiver in mid-2000 and volume availability in the second half of 2000; the ability for operators to securely deliver custom
Internet services to a subscriber base and mobile professionals such as delivery fleets or regional salespeople to easily
access customized Internet content with the receiver; and SCM's ability to cooperatively work with Nokia to deliver a
digital terrestrial receiver that securely transmits data over terrestrial networks. These statements involve risks and
uncertainties. For example, the terrestrial receiver may not perform as expected, or it may not be completed within the
expected timeframes. The cooperation between SCM Microsystems and Nokia may prove unsuccessful, or the companies'
technologies may be incompatible. These risks and other risks of SCM's business are described in greater detail in SCM's
public company reports, including the Report on Form 10-Q for the quarter ended September 30, 1999 and the Report of
Form 10-K for the year ended December 31, 1998, each filed with the U.S. Securities and Exchange Commission.
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