SCM Supplies Leading PC Manufacturer with Smart Card Readers

FREMONT, Calif., Oct. 21 /PRNewswire-FirstCall/ --

SCM Microsystems, Inc. (Nasdaq: SCMM; Neuer Markt: SMY), a leading provider of
solutions that open the Digital World, today announced it will provide smart
card readers to MicronPC, an industry-leading PC manufacturer. The joint
initiative will provide secure network access to General Services
Administration and military personnel under the Department of Defense (DoD)’s
Common Access Card (CAC) program.

SCM’s USB, serial and PCMCIA smart card readers will be offered as an
external option on MicronPC’s ClientPro 325, 525, and CH desktop computers, as
well as the TransPort T1000, V1000, and GX3 notebooks. MicronPC is a major
technology supplier to the US Government.

The CAC program will provide over four million DoD personnel with a
standard identification badge based on smart card technology over the next one
to two years. Aside from this agreement, SCM has previously supplied its
reader technology to the CAC program in partnerships with Maximus, Northrop
Grumman, RMW Enterprises and others.

“SCM’s standard platform enables MicronPC to easily implement its reader
technology into our desktop and notebook systems,” said Paul Petersen,
MicronPC vice president of product marketing and development. “As a leading
supplier of computer technology in the government sector, it’s crucial we
provide security solutions that meet the requirements set forth in the DoD’s
CAC program.”

“MicronPC’s selection of SCM demonstrates its growing recognition as the
leading provider of secure access solutions for the PC platform,” said
Jason Schouw, vice president, Americas at SCM Microsystems. “SCM is the most
capable and experienced reader supplier to handle the large scale demand
required by one of the DoD’s major suppliers. This is a significant win for
SCM as we continue to drive our security platform into the government sector.”

The readers being supplied to MicronPC are all based on SCM’s STC II
controller chip, an embedded, single chip solution for smart card and
biometric readers that supports multiple interfaces, multiple reader devices
and all relevant security standards. The STC II chip was the industry’s first
to offer On-board Flash, allowing future firmware and application
enhancements.

About MicronPC

MicronPC, LLC provides award-winning computer products and services for
government, education, small and medium business and consumer markets. In
addition to its direct business-to-business sales channel, MicronPC products
are sold through leading resellers nationwide. MicronPC is held by Gores
Technology Group, an international acquisition and management company.
MicronPC is headquartered in Nampa, Idaho. More information about the company
can be found at http://www.micronpc.com.

About Gores Technology Group

With headquarters in Los Angeles, Gores Technology Group (GTG) is a
privately held international acquisition and management firm that pursues an
aggressive strategy of acquiring promising high-technology organizations and
managing them for growth and profitability. GTG has a proven track record of
acquiring and successfully managing companies – including many divisions
acquired from large publicly traded companies – through its commitment to
customers, employees and continued development of intellectual property. GTG
has acquired and managed approximately 40 interrelated but autonomous
technology-oriented companies with locations throughout the world. Those
companies provide a broad range of technology-based products and services to a
substantial customer base representing millions of active users worldwide.
Visit the company’s Web site at http://www.gores.com.

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 Security business provides smart card reader technology for the PC
platform and conditional access modules for the digital TV platform to OEM
customers in the government, financial, enterprise and broadcasting markets
worldwide. The Company’s Digital Media and Video business provides hardware,
software and silicon solutions for creating and sharing digital media content
to the worldwide retail market under the Dazzle(TM) brand. Global headquarters
are in Fremont, California, with European headquarters in Ismaning, Germany.
For additional information, visit the SCM Microsystems website at
http://www.scmmicro.com.

NOTE: All trade names are either trademarks or registered trademarks of
their respective holders.