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To: Art Bechhoefer who wrote (8639)1/9/2000 1:42:00 PM
From: Binx Bolling  Read Replies (1) | Respond to of 60323
 
SCM Microsystems Announces Secure Digital Media Readers


January 7, 2000

--------------------------------------------------------------------------------

Leading Digital Media Reader Company to Develop Products Leveraging New SD

Flash Memory Cards

LOS GATOS, Calif., Jan. 6 /PRNewswire/ -- SCM Microsystems, Inc., (Nasdaq: SCMM; Neuer Markt: SMY), the leading provider of solutions that enable people to conveniently access digital content and services, announced today plans to develop card readers for a new class of flash memory cards, called Secure Digital, or SD memory cards. The readers will be sold with digital consumer electronics devices such as Internet music players and digital cameras to facilitate the rapid and secure transfer of digital information. Under development by leading consumer electronics and digital media companies, including Matsushita Electric, SanDisk and Toshiba, Secure Digital cards are small size, high speed read/write next generation memory cards capable of providing a high level of copy protection for music, movies and other artistic and commercial content.

"SD Memory cards will enable a new generation of digital audio and video products and applications, and we are committed to providing readers that will allow consumers to enjoy the benefits of this powerful new media form factor," said Alan Jones, President SCM Microsystems U.S. "Our SD media readers leverage SCM's expertise in security and connectivity to provide secure transfer of sensitive data with the fastest download times, easiest connections and greatest reliability for the user. Our world class manufacturing capabilities will enable us to deliver high quality, low cost SD readers in volume to consumer electronics manufacturers around the world."

Flash memory-based removable storage cards provide a compact, reliable, and easy-to-use medium to store high volumes of visual, audio and other data for digital music players and cameras, personal digital assistants (PDAs), video cameras, cellular phones and other digital consumer electronics products. The proliferation of digital devices is creating rapid growth for these removable media. In addition, the increasing use of removable flash memory cards to transfer and store digital content such as Internet music and personal data has led to demand for methods to improve copyright protection for artists and other content owners and provide greater data security for users. The SD Memory card addresses the need for fast, secure and convenient transfer and storage of copyrighted or sensitive content.

"The sophisticated security of the SD Memory card will unleash numerous exciting new consumer products and enable mass distribution of copyrighted content as well as e-commerce in a variety of multimedia and wireless/Internet applications," said Nelson Chan, senior vice president of marketing at SanDisk. "We are pleased that technology leaders such as SCM Microsystems are working in parallel with the development of this new media to insure that its deployment will be rapid and successful."

SCM Microsystems SD Memory card readers will be available in the second quarter of 2000.

About SCM Microsystems

SCM Microsystems is the leading supplier of solutions that enable people to conveniently access digital content and services. The company operates in three primary markets -- Digital TV, PC Security and Digital Media. SCM's advanced silicon solutions 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 headquarters are in Los Gatos, Calif., with European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems Web site at scmmicro.com.

NOTE: Product and company names herein not trademarked by SCM Microsystems may be trademarks of their respective owners.

SOURCE SCM Microsystems, Inc.

CONTACT: Darby Dye of SCM Microsystems, 408-364-8402, or ddye@scmmicro.com

Web site: scmmicro.com (SCMM)

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Semiconductors in PCs & Peripherals
Flash Memory Data Storage
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Information/Data Security
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