Complete Solution for Small and Medium Enterprises

Fremont, CA, March 7, 2005–SCM Microsystems, Inc. (NASDAQ: SCMM, Prime Standard: SMY), a leading provider of solutions that open the Digital World, complements its successful CHIPDRIVE product line with a new time recording solution that gathers, records and evaluates project data. The new Time Recording – Project Edition is easy, versatile and cost-efficient–in short: the only solution that reduces the cost and time of administering projects for SMEs.

CHIPDRIVE Time Recording–Project Edition is perfectly suited for office use, production facilities, agencies, law firms, service industries and trade. It supports the recording, controlling and evaluation of project data. The solution is flexible, allowing administrators to set timeframe, number of users and projects. It also can be used to track, record and evaluate multiple users on multiple projects. The complete solution can be used standalone or in networks and can be expanded to up to 100 users.

CHIPDRIVE Time Recording–Project Edition works as follows: a smart card and card reader is required for each person working on a project. The smart card tracks time spent on a dedicated project and aggregates the data from each project participant. Detailed reports are easily to create, providing both interim and complete views of project status as well as individual participant activities. The program also includes the ability to export reports to Microsoft® Excel.

CHIPDRIVE Time Recording–Project Edition can be purchased at the CHIPDRIVE Online Shop or at specialized trade shops (Price: € 349,95 including ten smart card readers and ten user-cards).

About CHIPDRIVE®

CHIPDRIVE® is a trademark of SCM Microsystems.

The CHIPDRIVE® product range offers individuals and small businesses affordable, customˇized solutions for security, authentication, home banking and e-commerce.

Secure card readers are based on industry standards and are ideal for providing user authentication and home banking. Smartcard-based software solutions for applications such as netˇwork logon, encryption and time recording rounds off the range of CHIPDRIVE® products. CHIPDRIVE® stands for compatibility with industrial standards, easy handling and highˇest possible security. For more information, please visit http://www.chipdrive.net.

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.