Hitachi Software Engineering Invests In SmartDisk

Business Wire, May 25, 1999

NAPLES, Fla.--(BUSINESS WIRE)--May 25, 1999--

Forms Alliance to Expand

Market for Smarty Smart Card Reader/Writer

SmartDisk Corporation, a company focused on providing simple, innovative solutions that advance and enhance the use of miniature storage media and smart cards, today announced it has entered into a strategic alliance with Hitachi Software Engineering, the largest subsidiary of Hitachi Ltd., and the leading software company in Japan. According to the agreement, Hitachi will distribute SmartDisk's Smarty(R) smart card reader/writer around the world. Hitachi also will sell Smarty into banks affiliated with the Mondex smart card and electronic cash card payment systems.

"Smarty, the floppy-disk sized smart card adapter, enables easy smart card access through the PC," said Yozo Mizuno, Deputy General Manager, Financial Systems Division, Hitachi Software Engineering. "That's why we are deeply committed to working with SmartDisk in making Smarty widely available to smart card users. This partnership will help broaden the acceptance of smart cards and electronic cash on a global scale."

"SmartDisk is delighted to partner with Hitachi in distributing Smarty," said Addison M. Fischer, chairman of SmartDisk. "As one of the world's leading software companies and a major player in smart card technologies, Hitachi shares SmartDisk's vision of offering simple, yet innovative solutions for those who like the ease-of-use and security of smart cards. This new alliance also reflects the continued growth of the smart card industry and the increased demand for Smarty."

About Smarty(R)

The Smarty(R) smart card reader/writer acts as a bridge between a smart card and a PC. Smarty, a product of SmartDisk, has the same dimensions as a 3.5-inch floppy disk and includes a slot into which a smart card can be inserted. One simply inserts a smart card into the slot and slips Smarty into a PC's floppy drive. Increasing demand for smart cards in Asia, Europe and the U.S. is fueling a need for a versatile, economical card reader. Smarty fulfills this need, supporting electronic commerce, banking, health care, and government applications, and the high-level security required in access control, network authentication and data certification.

About Hitachi Software

Hitachi Software of Yokohama, Japan, is one of the largest software manufacturers in the world. Ever since its establishment in 1970, Hitachi Software has been involved in the development of the basic software for large-scale computer systems, and the development of large-scale application systems for governmental authorities, financial institutions, insurance companies and security companies promoting the concept of being linked on-line. President: Dr. Tsutomu Sato Capital: 27,855 Million Yen (February 1999) Number of employees: 4,706

About SmartDisk Corporation

SmartDisk designs, develops and markets products that simplify the digital lifestyle. Its patented product solutions enable the easy transfer of images, music, voice and data between personal computers, the Internet and various types of digital appliances that use flash memory cards and/or smart cards. SmartDisk's objective is to utilize its proprietary technology to capitalize on the growing demand for digital appliances and increased usage of the Internet. The market for SmartDisk's solutions includes users of the ubiquitous and resilient 3.5-inch floppy disk drive, found worldwide on almost 300 million personal computers. SmartDisk's investors include Toshiba Corporation, Fischer, Hitachi, NEC and others. For more information, go to www.smartdisk.com.