NDS and SCM Microsystems Debut Open End-to-End Digital Cable Solution for Korea

Business Wire, July 30, 2002

Business Editors/High Tech Writers

SEOUL, Korea--(BUSINESS WIRE)--July 31, 2002

NDS Group plc (NASDAQ:NNDS):

- NDS Shows Proven Conditional Access Solution for Korean OpenCable(TM) Broadcasting

- SCM Microsystems Brings World's Leading Removable Security Platform to Korea's Digital Cable TV Roll-Out

NDS Group plc, a News Corporation company and a leading provider of technology solutions for digital pay TV, today announced it has completed development of an open end-to-end cable TV system for the Korea cable TV market in conjunction with strategic partner SCM Microsystems (Nasdaq:SCMM)(Neuer Markt:SMY).

The parties will demonstrate the end-to-end system at the inaugural meeting of the Korea Digital Cable Forum in Seoul on July 30, 2002. The system utilizes NDS's Open VideoGuard(TM) conditional access security in an OpenCable(TM) POD (Point of Deployment) module developed and manufactured by SCM Microsystems, running on an OpenCable set-top box from LG Electronics.

The Korean government is preparing to deploy digital cable television to between five and eight million households in Korea over the next five years. Cable TV broadcasts will be secured through traditional encryption procedures, but will be decrypted by subscribers via removable security modules rather than proprietary set-top boxes.

Ms. Sue Taylor, Vice President and General Manager of NDS Asia Pacific Ltd. said, "NDS's Open VideoGuard conditional access supports over 28 million subscribers worldwide. NDS has been a pioneer in the push to insure interoperability between set-top boxes and POD security modules through OpenCable. For Korean cable TV broadcasters upgrading to digital, this solution delivers the reliability of NDS's conditional access technology with the flexibility to be deployed on multiple set-top boxes. The solution is ready for deployment today."

"As the pioneer of removable security for Digital TV broadcasts, SCM supports the goals of the Korean government in adopting OpenCable for its digital cable TV roll-out," said Robert Schneider, chief executive officer of SCM Microsystems. "Removable security forms the base for an open standards-based digital television industry that is both competitive for consumers and profitable for operators. "We are pleased to be working with our long-time partner, NDS, to develop and deliver an end-to-end OpenCable solution for the Korean market."

Korean OpenCable POD solution

Each of the partners presents a solution that builds on their unique capabilities. SCM Microsystems manufactures the OpenCable Point of Deployment (POD) module to securely decrypt broadcast signals for authorized subscribers. SCM initially developed the OpenCable POD hardware platform for the US digital TV market, and the POD standard has now been selected by the Korean government for that country's digital cable deployment. Together, SCM and NDS previously created an NDS version of the POD module for the US marketplace and the companies are now developing a specific NDS version for the Korean market. NDS Open VideoGuard is the conditional access security for digital cable TV broadcasting that ensures viewers pay for what they watch and also enables interactive TV services.

The OpenCable POD module is a removable, hardware device that encapsulates conditional access and security functionality, and which can be slotted into any OpenCable-based set-top box. The use of the POD module enables the broadcast signals to be securely decrypted by multiple set-top boxes, while providing greater flexibility to the operator's business plans and conforming to standards as set forth in the OpenCable specifications.

The Korean government has selected OpenCable standards for cable TV broadcasting operations in the country. OpenCable is a set of specifications originally developed by Cable Television Laboratories (CableLabs(R)) for the North American cable TV market. Standards Organization Telecommunications Technology Association (TTA) will be establishing a test lab to test set-top boxes in Korea for compliance with OpenCable standards.

About SCM Microsystems

SCM Microsystems (Nasdaq:SCMM, Neuer Markt:SMY) 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 website at www.scmmicro.com.

About NDS

NDS Group plc (NASDAQ/NASDAQ Europe:NNDS) is a leading supplier of open end-to-end digital pay TV solutions for the secure delivery of entertainment and information to television set-top boxes and personal computers. See www.nds.com for more information about NDS.