SCM Microsystems and BioID AG Establish Strategic Cooperation

Multimodal biometric authentication solutions will meet industry demand for
stronger data security, access control and personal identification

SANTA ANA, Calif., ISMANING, Germany, and SACHSELN, Switzerland, Nov. 12
/PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM) (Prime
Standard: SMY) and BioID AG announced today that they have entered into a
strategic partnership to create biometric enabled access solutions, beginning
with the joint development of biometric authentication solutions for IT
security. SCM's expertise in smart card reader technology and other
authentication hardware, combined with BioID's state-of-the-art face, iris and
voice recognition technology will enable strong, reliable, and convenient user
authentication for enterprise, government and consumer applications. In
addition, SCM's vast reseller network and direct relationships with government
and enterprise clients offer established distribution channels for these new
solutions.

"BioID's unique and powerful multimodal biometric authentication technology
has been widely used for many years for applications from remote and home
office protection, to corporate and private banking, to remote access
protection for the military," said Felix Marx, CEO of SCM Microsystems. "This
cooperation will enable us to expand our offerings with multi-factor biometric
authentication solutions, both in our target physical and logical access
markets as well as to newer markets where strong user authentication is
required."

Concerns about identity theft, privacy and data security are driving
organizations to consider new authentication approaches. Regulatory agencies
like the Federal Financial Institutions Examination Council (FFIEC) no longer
consider simple passwords strong enough to protect sensitive data and
transactions such as medical records or Internet banking. A leading market
analyst firm has recommended that companies should switch as soon as possible
to stronger authentication methods for high-risk access systems, and should
plan for wider deployment in the next few years.

In response to this demand, in the first phase of the relationship the two
companies will develop a solution suiting for SCM's @MAXX Secure Storage token
family, adding an extra layer of security with BioID's renowned face, iris and
voice recognition technology. The resulting product will protect vital and
sensitive user data such as Internet and application passwords, payment card
PINs and private keys for data encryption and digital signatures, while
providing strong user authentication requiring using a password or PIN, the
@MAXX token and the user face, iris and/or voice.

"SCM Microsystems and BioID are a natural fit because both companies are
addressing problems in many of the same areas, such as Internet and network
security, e-passports, e-commerce and secure medical record access," said Ho
Chang, CEO of BioID AG. "Our personal recognition software and SCM's expertise
in smart chip readers and tokens create strong synergies, allowing us to offer
customers in these markets secure and convenient security solutions. We look
forward to a fruitful long-term collaboration."

About BioID
BioID is the leading developer of multimodal biometric authentication
solutions, with many years expertise in the field of IT security for banking,
enterprise, and government applications. The company is also currently
developing new solutions for mobile and internet authentication. BioID's
authentication solutions link a real person to their digital identities, by
simultaneously recognizing face, iris, and voice. Privately held, BioID is
headquartered in Sachseln, Switzerland, with development facilities in
Nuremberg, Germany. For more information, please see www.bioid.com.

About SCM Microsystems
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.

Note: All trademarks are the property of their respective owners.

SOURCE SCM Microsystems, Inc.

Annika Oelsner, +49 89 9595-5220, aoelsner@scmmicro.com, or Darby Dye,
+1-949-553-4251, ddye@scmmicro.com, both of SCM Microsystems; or Klaus
Schroeter of BioID AG, +41 479 572 48 21, k.schroeter@bioid.com; or Beate Haas
of BioID GmbH, +49 911 9999 898 0, b.haas@bioid.com