Louisville, Colorado, December 2, 1998—Cable Television Laboratories, Inc., (CableLabs®) has contracted with SCM Microsystems to develop a test tool that will allow consumer electronics manufacturers to develop and test the point-of-deployment (POD) interface to the removable security module.

This effort will help ensure that the POD interface specified by the OpenCable™ project is developed correctly and in a timely manner. CableLabs also will use this tool to certify the proper integration of the POD module slot into the navigation devices.

OpenCable™ is an effort managed by CableLabs to specify the next-generation digital devices for the home. These devices will support digital cable services and systems with an open design and with well-defined specifications to allow interoperability and to promote competition among system suppliers. The removable security module is critical to completing this process.

"The test tool being developed by SCM is critical to the successful development of OpenCable devices," said Laurie Schwartz, vice president, advanced platforms and services, and OpenCable project lead. "SCM brings significant experience to this project. They have been instrumental in the design of the separable security interface and continue to support the OpenCable effort through the development of the test tool," Schwartz said.

"In coming months, the first prototype POD modules will begin interoperability testing at CableLabs® with different receivers. Very quickly, this will generate many combinations, and such a tool may be used to help characterize and certify the receivers and the PODs," says Steve Humphreys, CEO and president of SCM Microsystems. "SCM is committed to support the deployment of OpenCable POD modules, and the POD test tool will ensure that our modules, as well as other suppliers' modules, could be used everywhere," Humphreys said.

It is anticipated that SCM will complete its work in the first half of 1999, thereby allowing manufacturing and testing to proceed on schedule to meet the FCC July 2000 date for retail availability of cable devices.

SCM Microsystems Inc. (NASDAQ: SCMM), with headquarters in Los Gatos, California, and offices in Germany, France, Singapore and Japan, is a leading provider of products and technologies which give individuals the ability to quickly and securely control, access and exchange digital information. By bridging smart cards and other secure devices with consumer and computer devices, SCM Microsystems provides cost-effective solutions for conditional access to mobile and desktop computers, workstations, digital television receivers, virtual private networks, electronic files, e-mail and Internet firewalls. For additional information, contact SCM Microsystems at (408) 370-4888 or e-mail digitaltv@scmmicro.com.

About CableLabs: Cable Television Laboratories (www.cablelabs.com) was founded in 1988 by members of the cable television industry. A non-profit research and development consortium, CableLabs is dedicated to pursuing new cable telecommunications technologies and to helping its cable operator members integrate those advancements into their business objectives. Cable operators from around the world are members. CableLabs maintains additional web sites at www.cablenet.org, www.ebif.tv and www.tru2way.com.

CableCARD™, CableHome®, CableLabs®, CableNET®, CablePC™, DCAS™, DOCSIS®, DPoE™, EBIF™, Go2BroadbandSM, M-Card™, OpenCable™, PacketCable™, PeerConnect™, and tru2way® are marks of Cable Television Laboratories, Inc. All other marks are the property of their respective owners.