Dazzle Multimedia, Inc. Announces Exclusive Development and Licensing Agreement With MainConcept GmbH.

Business Editors, Technology Writers

FREMONT, Calif.--(BUSINESS WIRE)--Aug. 2, 2000

Technology Will Allow Dazzle to Quickly Introduce DV Editing Products

for Personal and Professional Video Markets

Dazzle Multimedia, Inc., a leading provider of desktop and notebook digital video editing systems for businesses and consumers, announced today that it has entered into an exclusive technology development and licensing agreement with MainConcept GmbH of Aachen, Germany.

Dazzle will use MainConcept's video editing engine in upcoming products, and will exclusively market MainActor -- MainConcept's video editing software package -- in the United States, under the Dazzle brand.

Dazzle will introduce DV editing packages incorporating the technology into personal and professional editing products in Q3 2000. By adding its own innovative interfaces to this proven engine, Dazzle can quickly create applications that offer professional-quality features with unmatched ease of use. The MainConcept engine includes a DV codec which offers ultra-fast rendering and broadcast-quality output. Despite the widely-held belief that DV editing is a completely "lossless" procedure, some other codecs introduce noticeable quality loss during rendering. The MainConcept codec maintains the integrity of the source material, generation after generation, without sacrificing speed.

"DV technology is making possible a whole new generation of consumer video editing products with enormous benefits to the end user," said Sajid Sohail, co-founder and chief executive officer of Dazzle, Inc. "With the exploding demand for DV camcorders we are designing products that will give consumers powerful and user friendly video editing and publishing capabilities at prices never possible before. Our proprietary agreement with MainConcept takes full advantage of this demand and will bring Dazzle to the forefront of companies deploying leading DV technologies."

MainActor is MainConcept's digital video editing suite, which is advanced enough for professionals but easy enough for home users. It includes popular features like a timeline interface, dozens of transitions, video and audio filters, titling and motion paths. It also includes unique capabilities like background rendering, morphing, a 3-D title generator and the MainConcept DV codec. The software works under Windows 95, 98, 2000 and NT. A Linux version -- the only professional editing solution available for this fast-growing platform -- will be included in the package.

"We are delighted that Dazzle has chosen to utilize our technology. Dazzle is known as the leader in quality and value, and we are pleased to provide the engine that will drive future development," said Markus Moenig, founder and chief executive officer of MainConcept. We are also excited that MainActor will be brought into mainstream retail channels in the United States. Dazzle's top-notch marketing and distribution will make it a huge success."

A codec (COmpressor/DECompressor) is a program that compresses multimedia for the most efficient storage and transmission, and decompresses for playback and editing purposes.

About Dazzle Multimedia

Dazzle Multimedia, Inc. headquartered in Fremont, Calif., designs, builds and markets innovative, easy-to-use, Internet-ready products for digital video editing and publishing. With the acquisition of FAST Multimedia Personal Video Division, Dazzle Europe was formed in July of 2000, and will bring Dazzle's award winning product line to the rest of the world.

A majority of Dazzle is held by SCM Microsystems Inc. (Nasdaq:SCMM)(Neuer Markt:SMY), a leading provider of solutions that open the Digital World. Interested parties can learn more about Dazzle by calling 510/360-2300 or by visiting the company's Web site at www.dazzle.com.

The Dazzle Product Line

Dazzle's family of award-winning products include the Digital Video Creator and Digital Photo & Video Maker, plug-and-play devices for novice to advanced PC users, which focus on applications for using TV-quality digital video. Dazzle's DV-Editor, a companion for the DV camcorder, which includes a FireWire(TM)/IEEE 1394 PCI adapter card and powerful editing software suite.

Dazzle recently introduced the Digital Video Creator II, advanced software with MPEG-2 compression technology and MovieStar(TM) Software which provides users with more editing and special effects capabilities. Dazzle's products are available from a nationwide network of retailers and resellers including CompUSA, Best Buy, Fry's Electronics, Micro Center, Office Depot, Staples and Sears. The products are also available online at www.dazzle.com.

About MainConcept

MainConcept GmbH was founded in 1993 as MainConcept GbR Moenig/Zabel to provide powerful but easy-to-use software for manipulating multimedia files. The result was MainActor for Amiga, which went on to become Amiga magazine's Product of the Year in 1995. MainActor is now available for the Windows and Linux platforms. MainConcept also offers professional-quality DV and Motion JPEG codecs, and is launching a high-end compositing and effects program called MainVision.

MainConcept is headquartered in Aachen, Germany. The company also has a U.S. operations center in Wilmington, North Carolina, and a marketing center in Cleveland, Ohio. For more information, visit MainConcept's website at www.mainconcept.com.