FREMONT, CA, November 24, 2004–SCM Microsystems, Inc. (NASDAQ: SCMM, Prime Standard: SMY), a leading provider of solutions that open the Digital World, today announced it has shipped over 14,000 dual interface (contact/contactless) smart card readers to NTT Communications (NTT Com). NTT Com will use the readers internally with employee ID cards and PCs to provide network and information systems security. The ID card also provides physical access control for employees entering the facility.

“We chose SCM’s readers because they allow both contact and contactless interfaces to coexist in a very efficient and reliable way. This is ideal for our employee ID cards because they use both technologies,” said Hisayoshi Yoshida, senior manager, Process & Knowledge Management Department of NTT Com. “Also, the price to performance ratio is the best on the market.”

NTT Com specified SCM’s SCR331-DI smart card readers, which are dual interface devices that read and write to both contact and contactless smart cards. SCR331-DI smart card readers are based on SCM’s proven STC II microcontroller and proprietary interface that brings a common set of advanced reader functions. These include flexible communications, compatibility with SCM’s highly successful SmartOS® middleware and on-board flash memory that works with the cryptographic capabilities to provide seamless and secure firmware upgrades in the field. SCR331-DI smart card readers are fully tested and compliant with all smart cards on the market, Microsoft® Windows® and all relevant industry standards.

The smart cards used for the employee ID cards are NTT Com’s own brand, “eLWISE.” The eLWISE card features large memory capacity, strong security and high-speed data processing. This combination makes it possible to integrate a number of conventional single-purpose card applications onto one card, such as ID cards for both physical and logical access. eLWISE is also used as Japan’s National ID card, known as the “JUKI.”

About NTT Communications

NTT Communications is a subsidiary of Nippon Telegraph and Telephone (NTT) Corporation (NYSE: NTT)–one of the world’s largest telecommunications companies. NTT Com provides high-quality, technologically advanced network management, security and solution services to consumers, corporations and governments on a global basis, with a special focus on the Asia-Pacific region. Its world-class backbone network, combined with the networks of partner companies around the world, offers access to more than 200 countries. NTT Com Group has 34 companies in the Asia-Pacific region, Europe and the Americas. For more information, please visit http://www.ntt.com/index-e.html.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to securely access digital content and services. The company develops, markets and sells its smart card reader technology for network and physical access and conditional access modules for secure digital TV decryption to OEM customers in the government, financial, enterprise and broadcasting markets worldwide. 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.