FREMONT, Calif., Oct. 26 /PRNewswire-FirstCall/–SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY) today announced it has delivered smart card readers to international technology group Giesecke & Devrient (G&D) for use in Belgium’s National e-ID program.

Belgium is becoming the first European country to standardize the electronic identity card. By the end of 2009, every Belgian citizen will be required to own an electronic ID card. To meet this requirement, close to ten million cards will be issued to the country’s citizens over the next three to five years.

G&D specified SCM’s Secure Trusted Readers, which will be installed at all Belgium municipalities for use with National e-ID smart cards. Secure Trusted Readers are dedicated to applications requiring high levels of security, such as the security needed for Belgium’s e-ID program.

“We chose SCM as our exclusive supplier of smart card readers because their products deliver the high performance needed for the e-ID program,” said Jan Van Eenoo, sales director of G&D Belgium. “SCM smart card readers provide highly secure access to sensitive, personal data such as that contained on Belgium’s e-ID.”

The Secure Trusted Reader is a programmable device that includes a smart card reader, a display and a secure PIN (Personal Identification Number) pad. It features embedded 1024 bit public key cryptographic functions for stronger authentication and a tamper evident design.

The Secure Trusted Reader is based on SCM’s proven STC II microcontroller and proprietary interface that brings a common set of advanced reader functions including flexible communications, compatibility with SCM’s highly successful SmartOS™ middleware and on-board flash memory that works with the cryptographic capabilities to provide seamless and secure firmware upgrades in the field. Secure Trusted Readers are fully tested and compliant with all smart cards on the market, Microsoft Windows and all relevant industry standards.

“The fact that Giesecke & Devrient selected SCM smart card readers for this groundbreaking project is a strong testimony to the security, user friendliness and reliability of our products,” said Robert Schneider, chief executive officer of SCM Microsystems.

The e-ID cards, valid for five years, will contain an embedded microchip storing the holder’s personal data, including date of birth, family tree, civil status, current and past addresses and military situation. The chip will also contain a digital certificate that will allow remote access authentication. With the card, users can access e-government applications, attaching an electronic signature to certify the authenticity of data transmitted when needed. These digital signatures will have the same legal value as hand written signatures. In addition, private companies such as banks expect to develop services that will leverage the electronic ID card. Initially the card will not contain biometric data, but this can be included at a later stage if deemed necessary.

About Giesecke & Devrient:

Giesecke & Devrient (G&D) is a technology leader in the supply of smart cards, systems and solutions for telecommunications, electronic payment transactions, transportation, health, ID, loyalty and multimedia applications as well as Internet security (PKI). G&D is also a leading provider of banknotes and securities as well as currency processing equipment. The Giesecke & Devrient Group, headquartered in Munich / Germany, operates subsidiaries and joint ventures all over the world. G&D employs around 6,800 people world-wide and generates an annual revenue in excess of 1.05 Billion Euro. For more information, visit http://www.gi-de.com.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to securely access digital content and services. The company develops, markets and sells its smart card reader technology for network and physical access and conditional access modules for secure digital TV decryption to OEM customers in the government, financial, enterprise and broadcasting markets worldwide. Global headquarters are in Fremont, California, with European headquarters in Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com.