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SCM: PK mit NOKIA hope


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 PC terrestrial 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

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.

SOURCE: SCM Microsystems, Inc.

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