Suresnes (France) and Ismaning (Germany), October 17, 2008–XIRING (NYSE Alternext: ALXIR), a European leader in security solutions for remote transactions, and SCM Microsystems (NASDAQ: SCMM; Prime Standard: SMY), a leading provider of solutions that open the Digital World, today announced their close collaboration to develop mobile eHealth smart card terminals for the new generation German healthcare system. Beginning in late 2008, new electronic health insurance cards will be distributed to 82 million German citizens, creating a market for compatible mobile eHealth terminals that facilitate at-home patient consultation and treatment by Germany’s 310,000 healthcare professionals and 130,000 physiotherapists. With this agreement, the two companies aim to achieve a leading share of this new market. SCM will sell the mobile terminals in Germany through its existing distribution channels and Value Added Partners.

XIRING, the leader of the French healthcare terminal market (SESAM-Vitale scheme), brings strong technical and field experience to the collaboration, highlighted by its robust mobile platform for healthcare professionals that is widely deployed in France. SCM Microsystems has developed several generations of proto-type and market-ready desktop eHealth terminals based on its close, multi-year collaboration with gematik, the German healthcare organization overseeing the country’s eHealth scheme, and the German Federal Office of Information Technology, BSI (Bundesamt für Sicherheit in der Informationstechnologie), in charge of defining security requirements for the program. XIRING and SCM are uniquely qualified to address the demanding technical specifications and strict security targets for mobile terminals in the German program.

“XIRING has the broadest range of healthcare solutions in France and their products are well recognised for their quality, performance and ergonomics. XIRING’s experience makes them an ideal partner to help SCM bring mobile eHealth terminals to the German market in the tight timeframe the program demands. Thanks to this strategic collaboration we are in the unique position to offer a complete terminal portfolio, including mobile as well as desktop models, for German health professionals,” commented Felix Marx, chief executive officer of SCM Microsystems.

“SCM Microsystems has played a major role in helping to develop card terminal specifications for Germany’s new eHealth scheme. They have the necessary software expertise, know-how of the German market and a strong understanding of the new program’s requirements. By joining our efforts, we are sure to provide the perfect mobile solution to German healthcare professionals,” commented Georges Liberman, chairman and chief executive officer at XIRING.

About SCM Microsystems

SCM Microsystems is a leading provider of solutions that open the Digital World by enabling people to conveniently access digital content and services. The company develops, markets and sells the industry’s broadest range of smart card reader technology for secure PC, network and physical access and digital media readers for transfer of digital content to OEM customers in the government, financial, enterprise, consumer electronics and photographic equipment markets worldwide. Global headquarters are in Ismaning, Germany. For additional information, visit the SCM Microsystems web site at http://www.scmmicro.com.

About XIRING

Created in 1998, XIRING is a security solution provider and develops security software embedded in smart card readers for strong authentication and digital signature. XIRING equips over 6 million users with remote card authentication solutions based on the banking card, and is the leader of the professional solutions market for the SESAM-Vitale French healthcare scheme. XIRING posted revenues of €23.8 million in 2007. XIRING has been listed on Alternext / NYSE-Euronext Paris since Sept. 18th 2006. Code ISIN: FR0004155612, mnemonic ALXIR.

More information: http://www.xiring.com, http://www.remotecardauthentication.info, http://www.homechipandpin.co.uk.

Contact

Deb Montner, Montner & Associates Tech PR Agency, 203-226-9290, dmontner@montner.com