IRDETO, SCM MICROSYSTEMS AND PHILIPS DEBUT ICOB MODULE.

Irdeto Access, a subsidiary of multinational media group Naspers (NASDAQ:NPSN) and a provider of content security solutions, SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard SMY) and Royal Philips Electronics (NYSE:PHG) have debuted the Irdeto Chip On Board (ICOB) module. The ICOB module is a secure, removable conditional access (CA) module produced by SCM with a built-in high-security smart card chip developed by Philips. The new ICOB module is one of the first devices on the market to combine the unique features and security functions of a standard common-interface conditional access module (CI-CAM) with an embedded smart card chip.

The smart card is auto-expiring, meaning the smart card is only valid for a certain amount of time after which a subscriber's access to the programs stops automatically. By integrating an auto-expiring Irdeto Access smart card with the ICOB module, content providers gain the opportunity to cost-effectively distribute auto-expiring "teaser" promotional subscriptions with every CI-CAM purchased. Once the promotional subscription has expired, consumers can upgrade easily to a normal subscription (either billed monthly or pre- paid) through the addition of a new smart card. This all-in-one solution operates in any DVB-compliant set top box (STB) that features a CI-CAM slot, enabling pay TV operators - or even free-to-air operators - to take advantage of the large existing installed base of STBs to offer their premium content.

"SCM Microsystems and Irdeto Access are enhancing their existing partnership with this new CI-CAM containing the ICOB chip, which opens new market opportunities for operators," said Robert Schneider, chief executive officer of SCM Microsystems. "This completely new approach demonstrates the success of SCM's strategy to deliver cutting-edge solutions that lead the industry in addressing evolving market requirements and opportunities. In addition, SCM's secure platform protects both the Irdeto Access CA application and the ICOB chip to safeguard the operator's business model."

"Having already shipped more than 10 million smart cards based on Philips high-security cryptocontroller ICs, Irdeto Access continues to provide innovative solutions in an increasingly sophisticated and security-driven pay-TV market," said Reinhard Kalla, vice president and general manager of Identification at Philips Semiconductors. "With the range of advanced chip solutions combined with leading expertise in encryption technology, Philips is able to offer the high level of security which is of such importance to premium subscription TV content providers."

"We are pleased to work together with industry leaders such as SCM Microsystems and Philips Semiconductors to develop robust content security solutions that give operators the opportunity to expand their own subscriber networks while tapping into competing business markets at minimal risk and expense through new business models," said Irdeto Access CEO Graham Kill.

The ICOB module can support multiple CA systems should they wish to participate, adding even more value to the consumer by providing access to services from more than one operator. This way consumers maintain the flexibility to select the device, brand, and STB model of their choice. With over-the-air or over-network upgrade options, the ICOB module can be updated easily to support new business models and future enhancements to security.

About SCM Microsystems

SCM Microsystems is a supplier of solutions that open the Digital World by enabling people to conveniently access digital content and services. The company markets and sells its smart card reader technology for network and physical access and conditional access modules for secure digital TV decryption to OEM customers in the government, financial, enterprise and broadcasting markets worldwide. Global headquarters are in Fremont, California, with European headquarters in Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com.

About Irdeto Access

Irdeto Access, a subsidiary of multinational media group Naspers, provides technology that secures content from concept to consumer. Irdeto Access specializes in designing, developing, and marketing end-to-end solutions to manage and protect content from unauthorized access in both the television broadcast and Internet environments.

Irdeto Access has been providing encryption technology for more than 30 years. The company's products are deployed worldwide. Over 10 million Irdeto Access smart cards have been shipped to date.

Irdeto Access can be found on the World Wide Web at http://www.irdetoaccess.com.

For more information, call 203/226-9290 or [phone].