Mindport and SCM Microsystems Announce OpenCable POD Project for North American Conditional Access; Partnership Enables Retail Distribution of Set Top Box Equipment.

CHICAGO--(BUSINESS WIRE)--June 16, 1999--

Mindport, the technology subsidiary of MIH Limited (NASDAQ:MIHL) and SCM Microsystems Inc. (NASDAQ:SCMM) announced today that the two companies have partnered to jointly develop and produce "Point of Deployment" (POD) removable security modules for conditional access (CA) applications in North America.

Compliant with both the Electronic Industries Association (EIA) NRSS-B and OpenCable POD specifications, the effort will be integrated into the CableLab's sponsored test program aimed at demonstrating removable security for set-top boxes (STB) and associated interoperability.

The Mindport / SCM project is in response to CableLabs' test and interoperability program and to the to FCC mandate that security functions of consumer devices used for broadband TV delivery be decoupled from the appliance. This means that the CA function can be locally supplied by the content or service provider and the basic appliance such as STB, TV receiver, PC etc., can be acquired independently by the consumer from local retail channels.

Phil Braden, president of Mindport Inc, the company's newly established US subsidiary, said, "This announcement is significant because it represents the first opportunity for true retail distribution of STB equipment for OpenCable receivers. This move is entirely consistent with our strategy of expanding Mindport's technology base into the North American market.

"Mindport, through our Irdeto Access company, is a recognized leader in providing smart card-based conditional access solutions for digital broadband networks throughout the Digital TV world. There are currently more than 2 million Mindport designed and licensed digital STBs deployed world-wide that are managed by our technology. We have also deployed more than 3.5 million enabled smartcards for digital set-top boxes. This demonstrates the rapid growth of our business. In addition, we will shortly begin deploying our DVB common interface (CI) removable security product, also co-developed with SCM Microsystems."

Commenting on the announcement, Jean-Yves Leroux, executive vice president and general manager of SCM Microsystems' Digital TV Product Division said, "We are pleased to be working in cooperation with Mindport on our second jointly developed removable CA module based on industry standards. Together we can provide the type of operator and consumer-friendly solution for the STB that CableLabs and the FCC are seeking.

"SCM is a market leader in the supply of modular electronic solutions for the PC world," Mr. Leroux continued. "By integrating Mindport's secure and reliable TV conditional access solution into our modules, we are creating a very attractive product for Cable Operators and Broadcasters that want to benefit from the availability of open receivers."

About SCM Microsystems

SCM Microsystems, Inc., (NASDAQ:SCMM), with headquarters in Los Gatos, California, European headquarters in Germany, research, development and support centers in France, India, Japan, Germany, and the United Kingdom, and production and engineering facilities in Singapore and Taiwan, is a leading provider of products and technologies which enable OEMs to provide applications for endusers to control, access, and exchange digital information with digital platforms like PCs and digital TV set-top boxes. SCM Microsystems is a leading developer and supplier of plug and play OEM peripheral interfacing technology, including ASIC interfacing solutions, firmware, and software. By bridging smart cards, digital media cards and other secure devices with PCs, Workstations and digital set-top boxes, SCM Microsystems provides cost-effective solutions for conditional access to mobile, handheld and desktop computers, workstations, digital video broadcasts, virtual private networks, electronic files, and e-mail. For additional information, contact SCM Microsystems in the United States at 408/370-4888 or in Europe at 49-8441-8960 or e-mail [e-mail]. The company maintains a Web site at www.scmmicro.com.

About Mindport:

Mindport, the technology subsidiary of NASDAQ and AEX listed MIH Limited (NASDAQ:MIHL) (AEX:MIH) is a global solutions provider of media commerce technologies for pay-TV and the Internet, enabling platform and channel operators to maximise their e-business opportunities. Mindport has focused on the key areas of the required technology, including software and hardware, and is well placed to integrate them successfully. The company operates in six focus areas to fulfill your requirements: Conditional Access, Customer Care and Billing, Interactive Set-top Box Operating Systems, System Integration and Consultancy, Content Management Systems and Set-top Boxes.

Mindport has more than 450 employees and has offices in the Netherlands (Hoofddorp), China (Beijing), USA (San Diego), South Africa (Johannesburg), India and Australia (Sydney).

Five of the six businesses are 100% owned by Mindport. OpenTV, a worldwide leader in interactive television software for the digital television receiver is 80% owned by Mindport and 20% by Sun Microsystems. OpenTV is headquartered in Mountain View, CA and has European operations in France.