FREMONT, Calif., Sept. 23 /PRNewswire-FirstCall/–SCM Microsystems, Inc. (Nasdaq: SCMM; Neuer Markt: SMY), a leading provider of solutions that open the Digital World, today announced a $500,000 deal with Student Marketing, Inc. to provide smart card terminals for the first nationwide retail loyalty program for students. Student Marketing’s Crew Card program allows college and high school students to receive 5-15% discounts from participating U.S. retailers as well as earn reward points redeemable for thousands of products available on the company’s Web site.

Student Marketing, under the name Student Crew, provides its members with cards embedded with computer chips to use at local retail outlets on, or near, school campuses throughout the U.S. These smart cards will then calculate reward points and provide crew points from purchases made on merchandise. SCM’s terminal technology will be supplied to retailers and independent franchise partners, such as Dominos, Subway and U-Haul, to award, track and redeem the loyalty points.

Student Crew anticipates 500,000 student members and over 27,000 retail merchants to participate by the end of the 2002-2003 school year. Launched in mid-August of this year, the Crew Card program will roll out through December 2002 in five phases, beginning in southeastern US and moving west.

“The Crew Card is the first of its kind to offer rewards and incentives to students across the US,” said Shawn Andreas, vice president of marketing at Student Crew. “We chose the SCM terminals for our mass distribution standard packages because we found that they are reliable and capable of storing thousands of transactions, so merchants can easily track points earned and monitor the success of the program.”

“Student Crew is leading the way for adoption of smart card loyalty programs across the U.S.,” said Jason Schouw, vice president of PC Security for SCM Microsystems. “In selecting SCM’s terminals, Student Crew has confirmed that SCM is a leading provider of cost efficient and reliable terminal solutions. We believe the popularity of this program will prove how beneficial loyalty card programs are for vendors and consumers alike.”

SCM’s Student Crew terminal is designed specifically to enable and leverage multifunctional smart card applications in a retail environment. The programmable device can be connected through a modem to a telephone, through a serial port to the cash register or PC, or can be used in standalone mode. The terminal’s design facilitates rapid transactions for management of bonus points awarded through merchant loyalty programs, as well as the downloading of new applications and programs.

About Student Marketing

Student Marketing, Inc. is a privately held company that is classified as a marketing/sales organization that targets the student demographic. This focus entails an extensive network of hundreds of college and high school campuses around the country. Based in Melbourne, Florida, the company has over 300 representatives, the majority of which comprise the outside sales forces stationed at regional offices around the nation. Student Marketing promotes the membership and fundraising programs at selected campuses under the name Student Crew. For more information, visit http://www.StudentCrew.com or call 321-724-9971.

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™ brand. Global headquarters are in Fremont, California, with European headquarters in Ismaning, Germany. For additional information, visit the SCM Microsystems website at http://www.scmmicro.com.

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