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Digital Keystone and SCM Microsystems Launch Testing Platform for CableLabs(R) OpenCable(TM) Specification

 Revolutionary HPNX(TM) Test and Development Tool Targets Digital Television
                      Manufacturers and Cable Operators

    LOS ALTOS, Calif. and FREMONT, Calif., May 19 /PRNewswire-FirstCall/ --
Digital Keystone, and SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard:
SMY) today announced the availability of HPNX, a revolutionary new test and
development platform for verifying product compliance with the CableLabs(R)
OpenCable(TM) specifications.  HPNX verifies conformance of digital
televisions, set-top boxes and other products built to the CableLabs OpenCable
specifications, which enable delivery of digital cable services and High
Definition TV from the cable operator to consumer electronics devices.  HPNX
is based on technology licensed from Digital Keystone, and was developed in
cooperation with CableLabs.  SCM Microsystems will manufacture and distribute
HPNX worldwide. HPNX is available for immediate delivery, with systems from
$16,000, depending on volume.
    "HPNX helps manufacturers to rapidly design and test new consumer products
that conform to the OpenCable specifications and offer the rich viewing
experience of digital cable television," said Don Dulchinos, vice president of
Advanced Platforms and Services and head of the OpenCable initiative at
CableLabs.
    The OpenCable specifications were developed to serve two purposes:
portability and interoperability.  "Portability" means that a piece of
consumer hardware, such as a set-top box, can be moved from one cable system
to another, and it will still operate.  "Interoperability" means that a piece
of hardware made by any manufacturer will work on any cable operator's system.
Compliance with the OpenCable specifications ensures that the various
reception components, including set-top boxes, receivers embedded in digital
television sets and removable security modules, known as PODs (Point of
Deployment), will work with any conditional access encryption software, as
well as with each other.
    "Effective testing and validation is essential to achieving the dual goals
of the OpenCable initiative -- interoperability and portability," said
Colas Overkott, executive vice president, Digital TV at SCM Microsystems.
"HPNX directly addresses this requirement.  With HPNX, operators, conditional
access providers and consumer electronics companies can quickly and cost
effectively develop open standards-based solutions for the fast moving U.S.
digital television industry."
    HPNX provides a single, cost effective environment for testing
cross-device integration, interoperability, and specification conformance.
Suitable for all manufacturers and cable operators, HPNX enables the rapid
development and validation of POD-enabled digital television decryption
devices and networks at a fraction of the time and cost of traditional
methods.
    Although HPNX will greatly assist manufacturers in internally testing for
conformance to the OpenCable specifications, CableLabs is responsible for
performing the actual OpenCable certification testing.  Today CableLabs uses
the HPNX tool for several portions of the OpenCable certification testing.
    Commented Paolo Siccardo, president and chief executive officer of Digital
Keystone, "The December 2002 agreement between the consumer electronics and
cable industries on a common specification for digital television receivers
has opened the market for OpenCable-based products.  Consumer electronics
companies are making a big push to assure product availability in retail
distribution and to meet anticipated consumer demand.  Digital Keystone is
proud to be at the forefront of digital television technology with HPNX, and
excited by the opportunity to launch our solutions in partnership with SCM, a
pioneer in digital television."

    SCM's background in Digital Television Decryption
    SCM pioneered removable security devices known as Conditional Access
Modules for digital television broadcast decryption and to date has shipped
several million modules to television operators in Europe.  The Company
participated in the development of the Digital Video Broadcast (DVB) and
OpenCable industry standards and remains closely involved in the
implementation of systems based on these standards worldwide.  SCM developed
the world's first OpenCable and DVB test tools and has now teamed with Digital
Keystone to license and market the second generation test tool, HPNX.

    Benefits of HPNX
    HPNX offers significant time and cost savings benefits to consumer
electronics manufacturers, developers of digital TV decryption technologies,
and network operators.

    -- Consumer electronics manufacturers developing set-top boxes or digital
       television sets with embedded receivers can test and verify their
       products' ability to decrypt various conditional access encryption
       systems without having to purchase a dedicated cable head-end, saving
       millions of dollars.

    -- By replacing test labs with an in-house test system, HPNX allows
       testing and verification of receivers throughout the development
       process, rather than only at the end, saving time and expenses
       throughout the development program.

    -- Conditional access suppliers can utilize HPNX to verify that PODs
       carrying their software are compliant to OpenCable specifications and
       will successfully decrypt broadcast signals, independently of the
       network.

    -- Digital cable TV operators can utilize HPNX to verify that PODs and
       receivers are working together to provide broadcast decryption.  This
       verification can be performed anywhere on the network, in the head-end
       or in a subscriber's home.

    HPNX Technical Information
    HPNX is based on a proprietary hardware interface device and an
application suite running on a Windows(R) XP PC.  HPNX provides complete
control and full connectivity for complex OpenCable cross-device integration
and verification, including reference POD and HOST behavioral models, MPEG-2
transport streaming, parsing and rendering, and bridging of the POD interface
IP connection to OCAP(TM) applications and to DOCSIS(TM) modems.  HPNX
supports SCTE DVS234 Service Information table editing and parsing, enables
automatic OpenCable HOST/POD Copy Protection certification tests, and provides
a complete test results capture and analysis utility.

    About Digital Keystone
    Digital Keystone is a developer of digital entertainment solutions to
access digital content over broadband networks.  The Company licenses its
proprietary designs to semiconductor companies, software developers and system
OEMs to enable the launch of breakthrough PC and consumer products.  Digital
Keystone has offices in Los Altos, Calif. and Aix-en-Provence, France.  For
additional information, visit the company's web site at
http://www.digitalkeystone.com.

    About SCM Microsystems
    SCM Microsystems is a leading supplier of solutions that open the Digital
World by enabling people to conveniently access digital content and services.
SCM's Security business provides smart card reader technology for the PC
platform and conditional access modules for the digital TV platform to OEM
customers in the government, financial, enterprise and broadcasting markets
worldwide.  The Company's Digital Media and Video business provides hardware,
software and silicon solutions for creating and sharing digital media content
to the worldwide retail market under the Dazzle(TM) brand.  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.
    For more information about CableLabs, visit these CableLabs websites:
http://www.cablelabs.com; http://www.packetcable.com; http://www.cablemodem.com; http://www.cablenet.org;
and http://www.opencable.com.

    NOTE:  HPNX(TM) is a trademark of Digital Keystone, Inc.
    All other trademarks are the property of their respective holders.


SOURCE SCM Microsystems, Inc.




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Related links:
  • http://www.scmmicro.com
    CONTACT:
    Paolo Siccardo of Digital Keystone,
    +1-650-938-7300, or paolo@dkeystone.com; or Deb Montner of Monter
    & Associates, +1-203-226-9290, or dmontner@montner.com; or Darby
    Dye of SCM Microsystems, +1-510-360-2302 or ddye@scmmicro.com
    NOTES TO EDITORS: CableLabs(R), OCAP(TM), DOCSIS(TM) and
    OpenCable(TM) are trademarks of Cable Television Laboratories,
    Inc.