SCM Microsystems and LEGIC Identsystems Announce Cooperation

SANTA ANA, Calif., ISMANING, Germany and ZURICH, Nov. 10 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM) (Prime Standard: SMY), a leading provider of solutions for secure access, secure identity and secure exchange, and LEGIC® Identsystems Ltd, a leading manufacturer of contactless smart card technology for personal identification, announced today that they have formed a strategic partnership to create new products that support integrated physical and logical access. SCM's expertise in USB tokens, smart card readers and other authentication hardware, combined with LEGIC's 13.56 MHz contactless technologies, will be combined to create strong, reliable and convenient convergence solutions for the business and consumer markets. The first joint products of the cooperation will be presented at the CARTES Exhibition from 17 - 19 November 2009 in Paris.

Dr. Otto Eggimann, vice president Sales and Business Development of LEGIC, anticipates that the partnership will further strengthen the development of converged physical and logical access solutions for both information technology and personal identification applications. "Our card-in-card technology allows the integration of LEGIC functions on existing data storage mediums such as smart cards or USB tokens. This opens completely new markets and enables new products combining contact and contactless applications. SCM Microsystems is a leader in smart card reader technology and the emerging convergence space, and is an important partner for us as we further develop this business line."

"We are pleased to be partnering with LEGIC, which is a recognized world leader in contactless technologies for the smart card industry. We look forward to benefiting from the synergies arising from the cooperation, and to being able to introduce our @MAXX product family into the 'World of LEGIC'," said Dr. Manfred Muller, executive vice president, Strategic Sales and Business Development for SCM Microsystems.

Currently the two companies are working to integrate SCM's @MAXX family of USB tokens with LEGIC's contactless personal identification technology to create a virtual transponder that allows secure and convenient authentication of individuals as they enter buildings or log on to computer networks.

The partnership with LEGIC will allow SCM to gain access to LEGIC's extensive partner network and to bundle LEGIC technology with its hardware devices, this enabling SCM customers to leverage the multi-functionality of LEGIC's transponder technology in the "World of LEGIC" - a variety of additional contactless applications such as time recording, access control, contactless payment applications, and others. The partnership also allows LEGIC to leverage SCM's expansive distribution channels and technology portfolio in the electronic security market.

About LEGIC Identsystems Ltd
LEGIC Identsystems Ltd, with headquarters in Switzerland, is the world leader in the design and manufacture of 13.56 MHz contactless smart card technology. The LEGIC product portfolio includes highly integrated LEGIC RF Standard, ISO 15693 and ISO 14443 compliant read/write chip sets, security modules and transponder chips. LEGIC Identsystems currently works with over 200 external co-operation partners world-wide who offer compatible LEGIC all-in-one-card applications including access control, e-payment, parking, e-ticketing and other multiapplications. More than 2 million readers and over 100 million credentials are successfully integrated in more than 60,000 work and leisure places worldwide.

About SCM Microsystems, Inc.
SCM Microsystems (NASDAQ: SCMM; Prime Standard: SMY) is a global leader in security and identity solutions for secure access, secure identity and secure exchange. Together with its Hirsch Electronics subsidiary, SCM provides complete, integrated solutions that secure digital assets, electronic transactions and facilities. The company offers the world's broadest range of contact, contactless and mobile smart card reader technology; physical and logical access control systems; digital identity transaction platforms; biometrics; and digital video. SCM's solutions enable a wide variety of applications including enterprise security, identity management, contactless payment, e-health and electronic government services. For additional information, visit www.scmmicro.com and www.HirschElectronics.com.