Irdeto Access Commits to Digital TV Open Systems From SCM Microsystems.

LOS GATOS, Calif.--(BUSINESS WIRE)--Sept. 17, 1998--

Irdeto Access Chooses SCM Microsystems to Develop and

Manufacture Irdeto's Open DVB-Common Interface Conditional

Access Module for Digital TV 

Mindport Irdeto Access, a leading Digital TV conditional access company in the Netherlands, and SCM Microsystems (Nasdaq:SCMM)(Neuer Markt:SMY), a leading provider of secure access products and technologies based on open standards security modules for Digital TV and PC platforms, have announced an agreement to jointly develop a DVB Common Interface Conditional Access Module (DVB-CI CAM) that will support the Irdeto security application and be manufactured by SCM Microsystems. The companies also announced the signing of a development and manufacturing agreement for the Irdeto Common Interface Conditional Access Module (CI CAM).

The DVB-CI Common Interface technology has been adopted as a European Cenelec standard as a means to create an "open" system for digital video broadcasts. This adoption reflects a worldwide movement towards an "open" system as the Federal Communications Commission (FCC) in the United States recently ruled for an open standard for the US-market, requiring a separation of the security access system from the Digital TV devices.

Traditionally, set-top boxes for the reception of digital video broadcasts have been limited to decoding only proprietary video broadcasts. As opposed to those previous generation devices, the European DVB-CI standard as well as the US-NRSSB standard enables the design of consumer Digital TV devices capable of receiving content from any content provider. The standards were developed by an international consortium of over 170 companies involved in digital broadcasting technology.

"The Irdeto DVB-CI CAM is a tangible example of our commitment to the development of open systems for Digital TV and enables us to meet regulatory conditions where applicable," said Michiel Willemsen, sales and marketing manager of Irdeto Access.

Both companies expect to ship the Irdeto DVB-CI CAM developed and manufactured under the terms of this agreement in the fourth quarter of 1998.

"SCM Microsystems is strategically committed to support the widest range of Conditional Access applications on its Common Interface module platform," said Robert Schneider, chairman and founder of SCM Microsystems. "New markets for modular security are emerging in Europe, North America and Asia Pacific; we provide the flexibility for which this architecture has been designed. Porting the leading Irdeto conditional access from Irdeto onto our modules brings credibility to the deployment of new open digital TV systems and services an important step forward in the development of open digital video systems." About SCM Microsystems

SCM Microsystems Inc., with headquarters in Los Gatos, California and offices in Germany, France, Singapore and Japan, is a leading provider of products and technologies which give individuals the ability to quickly and securely control, access and exchange digital information. By bridging smart cards and other secure devices with PCs and workstations, SCM Microsystems provides cost-effective solutions for conditional access to mobile and desktop computers, workstations, digital video broadcasts, virtual private networks, electronic files, e-mail and Internet firewalls. For additional information, contact SCM Microsystems at 408/370-4888 or e-mail mailto:[e-mail]. About Irdeto Access

Irdeto Access, a Mindport Conditional Access company, is a world-wide leading provider of Conditional Access (CA) solutions based in the Netherlands. Irdeto Access is an active participant in the DVB committee and has contributed major components to the DVB Common Scrambling Algorithm. The DVB Common Scrambling Algorithm has been adopted by the DVB committee and is mandated for inclusion in all digital TV receivers in the EU Directive 95/47/EC of 24 October 1995.

Irdeto Access supports DVB and MPEG2 standards. The Irdeto Access technology is implemented world-wide. Its digital CA technology, jointly developed with Beta Technik GmbH, was selected by Bertelsmann, Deutsche Telekom and Kirch for the German pay-TV platform. Note to the editor:

Mindport is a leading global provider of integrated system components for interactive electronic media. It is a MIH company and its operations include Irdeto Access, formerly known as Irdeto; OpenTV or Mountain View, California, in which it holds a significant stake and management role; Mindport MCT, Media Commerce Technologies; Mindport STB, Receiver Technologies; Mindport Solutions, System Integration for pay media; and Mindport IBS, Customer Care and Billing. The Mindport head office is situated in Hoofddorp, the Netherlands.