U.S. ARMY EQUIPS ITSELF WITH SCM MICROSYSTEMS' SMART CARD READERS FOR SECURE ID.

SCM Microsystems, Inc. (Nasdaq: SCMM; Neuer Markt: SMY), a provider of solutions that open the Digital World, and Logicon, a Northrop Grumman (NYSE: NOC) company, recently announced they are working together to supply smart card readers to the U.S. Army. To date, 50,000 SCM readers have been delivered as part of the initial deployment.

Under the Department of Defense's (DoD) new Common Access Card (CAC) program, Logicon is providing SCM's reader technology to the U.S. Army as part of its complete smart card solution for secure authentication. Based on the CAC specifications, the U.S. Army will use smart cards as a single badge for multiple security measures such as physical identification, building access and network access. Over four million active duty military personnel, selected reserve, DoD civilian employees and eligible contractor personnel will use the standard identification badge which will be deployed over the next few years.

"SCM's reader technology is important to the U.S. Army's smart card initiative, enabling multiple security checkpoints through a single device," said John Gist, Logicon's program manager for the General Services Administration (GSA) Smart Access Common ID Card contract. "The readers will assist the U.S. Army in promoting a secure environment."

"The DoD's decision to base its security initiative on smart card technology is a significant endorsement for the industry as a whole," said Jason Schouw, vice president, Americas, for SCM Microsystems. "Logicon is a trusted solution provider to the U.S. government and its use of SCM's products clearly confirms SCM as a leading manufacturer in smart card reader technology. SCM is pleased to supply and support the government's new program for secure authentication through the U.S. Army's entire network."

SCM is providing a variety of serial port, USB and PCMCIA readers to Logicon for the U.S. Army to address the need for secure access to both desktop and laptop computers, as well as other devices. All of SCM's readers are compliant with PS/SC standards to allow full smart card handling capabilities of Microsoft Windows.

Logicon Inc., a subsidiary of Northrop Grumman Corporation, is a premier provider of advanced information technology solutions, engineering and business services for government and commercial clients. Headquartered in Herndon, Virginia, Logicon's expertise spans such areas as information systems integration; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR); enterprise hardware and software solutions; training and simulation; base and range support; signals intelligence; space systems; health informatics; and specialized scientific, engineering and technical services.