Dazzle Digital Video Recorder Bridges the Gap Between Television and the Personal Computer; Allows Consumers to Create DVD-Quality Video on the PC.

LAS VEGAS--(BUSINESS WIRE)--Nov. 15, 1999--

Bringing together the power of the personal computer with the versatility of television, Dazzle Multimedia, the number one brand in MPEG digital video products for business and consumers according to PC Data, today announced that the Dazzle Digital Video Recorder, featuring TV Time-Shift recording, Frame Accurate Editing and DVD playback capabilities, will be available to consumers in January 2000.

Dazzle Multimedia will be unveiling the Dazzle Digital Video Recorder at Comdex '99 in Las Vegas, Nov. 15-19, 1999, in the SCM Microsystems booth located in meeting room EL01, at the Las Vegas Convention Center.

"The Dazzle Digital Video Recorder represents the next evolutionary step in the convergence of the personal computer and television," said Sajid Sohail, co-founder and CEO of Dazzle Multimedia. "This product will help transform the television viewing experience from a passive activity to an interactive one that allows consumers to control how they view programs.

"Additionally, the Dazzle Digital Video Recorder will allow consumers to record and edit DVD quality video from the PC and return it to a media source of their choice without the image degradation usually associated with desktop digital video editing," he said.

Designed to function as three-products-in-one, the new Dazzle Digital Video Recorder features include:

Time-Shift Recording - Using the Dazzle TimeWarp function,

viewers can record and watch TV programs simultaneously using a

built-in TV-tuner. The Pause TV feature allows live broadcast to

be paused when the viewer has to step away from the TV for those

unexpected "interruptions." With a single click of a button,

viewers can watch the missed segment of the recorded broadcast.

Another function of Time-Shift Recording is the Digital VCR which

allows consumers to use their computers like an analog VCR for

the recording and playback of television programs. The product

will also feature a Skip Commercial button which allows viewers

to "skip" commercials at 15- and 30-second intervals.

Frame Accurate Editing - The Dazzle Digital Video Recorder also

features MPEG2 video recording and frame accurate editing which

can then be sent to a VCR tape or a recordable CD-RW without the

image degradation usually associated with desktop publishing.

With MPEG2, consumers will be able to record full-resolution,

high-quality images from a growing number of digital sources,

including Digital Camcorders, Digital TVs and digital satellite

receivers.

DVD Playback - With DVD Playback, users will be able to view

their favorite DVD movies through their computer's DVD-ROM drive

without having to purchase a separate DVD player. Consumers will

still receive the sharp image associated with DVD movies and

surround sound (provided they have a Dolby digital decoder in

their computer or stereo receiver) without the additional cost of

purchasing individual home theater components.

The Dazzle Digital Video Recorder will initially be available as a PCI Card in January 2000 for $299. A USB version of the product will be available to consumers in February 2000.

The Dazzle Product Line

Dazzle's products, including its Digital Video Creator and Photo Maker, are plug-and-play devices for novice to advanced computer users which focus on applications for using TV-quality digital video, including creation and editing of home videos, creating streaming audio and video for Web pages and video e-mail, developing video-enhanced PowerPoint presentations and designing and distributing educational or training materials on CD-ROMs.

About Dazzle Multimedia

Dazzle Multimedia, based in Fremont, Calif., designs, builds and markets innovative, easy-to-use, Internet-Ready products for digital video recording, viewing, editing and publishing. A majority of Dazzle is held by SCM Microsystems Inc., a leading provider of solutions that enable simple and secure access to emerging digital platforms.

Interested parties can learn more about Dazzle Multimedia by calling 510/360-2300 or by visiting the company's Web site at www.dazzle.com.

About SCM Microsystems

SCM Microsystems Inc., (Nasdaq: SCMM)(Neuer Markt: SMY), is a leading provider of solutions that enable simple and secure access to emerging digital platforms. SCM's interface products provide network security and conditional access to digital content in three primary markets -- Digital Media, PC Security and Digital TV.

Through its ASICs, firmware, software and smart card readers, the company addresses the need to easily and securely control, access and exchange digital information with digital platforms such as PCs, Internet music players, digital cameras and digital television set-top boxes.

Customers include a host of OEMs, including Apple, Dell, France Telecom, Fuji Film, Gemplus, HP, Hitachi, Intel, Matsushita, Minolta, Motorola, Olympus, RCA Thomson, SanDisk, Schlumberger, Siemens- Nixdorf, Sony, Sun Microsystems and Telenor.

With headquarters in Los Gatos, Calif., and European headquarters in Germany, SCM maintains a global presence through its facilities in France, India, Japan, Germany, Singapore, Taiwan and the United Kingdom. For additional information, contact SCM Microsystems in the United States at 408/370-4888 or in Europe at [phone], or e-mail [e-mail].

The company maintains a Web site at www.scmmicro.com.