Reader supports contactless transactions using NFC-enabled mobile devices

FREMONT, Calif., April 3, 2008–SCM Microsystems, Inc. (NASDAQ: SCMM, Prime Standard: SMY), a leading provider of solutions that open the Digital World, today announced its new SCL3710 NFC reader, which enables a variety of contactless applications using mobile electronic devices. The Company is showcasing the new USB dongle during Asia’s largest smart card event, Cards Asia, taking place April 9–11 at the Suntec Singapore Convention Centre in Singapore. SCM will demonstrate the SCL3710 in booth # 4P09.

The SCL3710 is SCM’s response to the growing demand for solutions supporting Near Field Communication (NFC) technology–a new short-range wireless connectivity technology enabling contactless payment and information exchange using mobile phones and other handheld electronic devices. NFC technology enables consumers to purchase goods and services, download information, music and digital pictures or update address books with their mobile phones or PDAs.

“Near Field Communication is rapidly gaining acceptance among technologists and users alike as a secure and convenient contactless interface,” said Felix Marx, chief executive officer of SCM Microsystems. “But to become firmly established in the market, there must be a sufficient number of compelling applications and solutions using NFC technology. Our new dongle enables such applications and fills a need in the market for reliable, secure contactless connectivity devices. SCM Microsystems is once again demonstrating its leading role in the development of innovative products and technologies.”

The SCL3710 provides the link between NFC-enabled mobile devices such as mobile phones or PDAs and computer or web applications, while ensuring security for payment, banking and other financial applications. Information and data that have been stored on the mobile devices, such as vouchers, coupons, tickets and product details, can now conveniently be accessed and transferred to a PC or a notebook. In addition, the reader can be used for mobile smart-ticketing, data exchange and virtual connections, as well as ticketing and secure payment for public transportation, entertainment and other transactions.

The reader also can be used to enable contactless transactions for merchants. When inserted into a PC or notebook that is connected to a system such as a Point of Sale (PoS) terminal, vending machine, access terminal or parking meter payment device, the SCL3710 dongle communicates contactlessly with consumers’ NFC-enabled devices to support contactless transactions.

SCM Microsystems’ SCL3710

The high-performance SCL3710 uses Near Field Communication technology to enable wireless short-range communication between electronic devices. The USB device is based on the 13.56 MHz radio frequency (RFID) technology and supports ISO 14443 Type A cards, Sony developed FeliCa® tags, and NXP Semiconductors’ NFC tags. The reader enables numerous new NFC applications and therefore supports the large-scale spread of this technology.

About SCM Microsystems

SCM Microsystems is a leading provider of solutions that open the Digital World by enabling people to conveniently access digital content and services. The company develops, markets and sells the industry’s broadest range of contact and contactless smart card reader technology for secure PC, payment systems, network and physical access, and digital media readers for transfer of digital content to OEM customers in the government, financial, enterprise, consumer electronics and photographic equipment markets worldwide. Global headquarters are in Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com.

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