SCM Microsystems Announces DVD Creation Solution Promotion With HP; Video Capture/Editing Pioneer Plays Key Role in HP's Complete DVD Creation Solution for Consumers.

Business Editors & High-Tech Writers

GUILFORD, Conn.--(BUSINESS WIRE)--Nov. 29, 2001

SCM Microsystems, Inc. (Nasdaq: SCMM, Neuer Markt: SMY), a leading provider of solutions that open the Digital World, announced today a joint promotion with Hewlett-Packard Company on the combination purchase of SCM's Dazzle(TM) brand Digital Video Creator II (DVC II) and the recently announced HP DVD-writer dvd100i drive.

These products allow consumers to share the movies they have created using the DVD+RW/CD-RW format by making interactive DVDs that can be played on most DVD players and drives in use today.

Consumers who purchase the Dazzle DVC II in combination with the HP dvd100i drive will receive a $100 mail-in rebate offer. Both products must be purchased between November 4, 2001 and January 31, 2002.

The Dazzle DVC II enables consumers to record from a camcorder, VCR or TV to high quality, full motion MPEG-2 digital files. Using the Dazzle MovieStar(TM) editing and publishing software and the DVD authoring software, HP MyDVD Video(TM) by Sonic, files can then be transformed into Hollywood-style movies with professional transitions, scrolling titles, music and voice-over narrations. Completed movies can then be quickly and easily recorded onto a DVD+RW disc using the HP dvd100i drive and then played for friends and family on a home entertainment system which includes a DVD player and TV.

"HP is delivering the benefits of DVD to consumers by enabling people to view their home movies on their own television sets," said Al Conte, vice president of marketing for SCM's Retail Brands Group. "Rewritable DVD drives allow users to record home videos and photos to share with others, while preserving precious memories in a medium that won't deteriorate over time. HP is changing the face of this market and we are pleased to be working with the industry leader to help bring the excitement of movie making - and viewing - to consumers."

"The Dazzle brand is known for producing superior video capture and editing products for consumers," said Christine Roby, DVD product manager, HP Personal Storage Solutions. "With Dazzle products, we are able to provide complete solutions for consumers with both analog and digital camcorder video content. The combination of Dazzle's strengths in this area along with our easy-to-use, cost-effective DVD+RW drive will give consumers the ability to explore and create digital video on their PCs and share their new creations on a custom DVD."

Dazzle Digital Video Creator II includes:

-- Easy Connections to Your PC - Digital Video Creator II connects to the PC
via an easy-to-install PCI card and includes an external breakout box for
convenient video/audio connection.

-- Advanced Video Editing Software - MovieStar incorporates frame-accurate
editing and the ability to add special effects such as transitions, titles and
music to video segments.

-- MPEG-2 Video Compression - The DVC II automatically converts video into DVD
quality MPEG-2 files, saving hours of file conversion time.

The HP DVD-writer dvd100i drive offers the following technical specifications:

-- IDE/ATAPI DVD+RW/CD-RW drive with buffer underrun protection

technology;

-- 2.4x DVD (re-write), 8x DVD (read) speeds; and

-- 12x CD-R (write), 10x CD-RW (re-write) and 32x CD (read)

speeds.

About Dazzle Digital Media Products

Dazzle digital media products are designed and built to be easy to use and help both amateur and professional users capture, edit and share digital video and photos with high quality results. The Dazzle family of innovative products includes the Dazzle Digital Media Readers, Digital Video Creator Series, Dazzle DV-Editor Series and Dazzle DV-Bridge Series. Dazzle products are available from a nationwide network of retailers and resellers including CompUSA, Best Buy, Fry's Electronics, Micro Center, Office Depot, OfficeMax, Staples, Sears and Walmart. The products are also available online at www.dazzle.com. The Dazzle brand of products is manufactured by SCM Microsystems, based in Fremont, California.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access digital content and services. SCM's advanced silicon, hardware and software solutions enable secure exchange of electronic information for digital applications from e-commerce to broadband content delivery by providing controlled access points to platforms such as PCs, digital cameras, and digital television set-top boxes. Known as a premier supplier to OEM companies around the world, SCM also serves the retail market through its Dazzle and Microtech(TM) product brands. Global headquarters are in Fremont, California, with European headquarters in Pfaffenhofen, Germany. Headquarters for the company's Retail Brands Group are in Guilford, Connecticut. For additional information, visit the SCM Microsystems Website at www.scmmicro.com.

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