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SCM MICROSYSTEMS TO ACQUIRE SHUTTLE
TECHNOLOGY GROUP, LTD.
Brings Together Two Leaders in Interface Technology
LOS GATOS, Calif. (Oct. 22, 1998) -- (BUSINESS WIRE) ---- SCM Microsystems, Inc.
(Nasdaq:SCMM; Neuer Markt:SMY) today announced it has signed a definitive letter
of agreement to acquire privately held Shuttle Technology Group, Ltd. (Shuttle)
for approximately $33 million in stock in a transaction to be accounted for as a
pooling of interests. The transaction is subject to certain conditions and is
expected to close within the next 30 days.
Based in the UK with operations in Madras, India and Fremont, California,
Shuttle specializes in developing secure, reliable access and interface
technology for OEM manufacturers such as Hewlett Packard, Imation, Panasonic,
NEC, Olympus and SyQuest. Shuttle recently entered the security market with the
Digit(TM) fingerprint recognition device.
"Shuttle's products, technological expertise, business model and operations are
highly complementary with SCM Microsystems," said Steve Humphreys, president and
chief executive officer of SCM Microsystems. "This transaction brings together
two leaders in access and interface technology in highly complementary arenas,
including smart cards, digital media and digital content platforms. In fact, we
already use a key component from Shuttle in one of our digital media products.
Shuttle's products which SCM Microsystems intends to focus on generated
approximately $18 million in revenue for the 12 months ended September 30,
1998."
Humphreys said, "We are particularly excited about Shuttle's expertise in ASIC
development and their world-class engineering center in Madras. As we have
stated repeatedly, it is important for SCM Microsystems to migrate our
technology to the silicon level to drive down costs, provide our OEM customers
with greater flexibility and support widespread adoption of SCM Microsystems'
technology. Shuttle's expertise and proven ability to deliver high quality,
low-cost solutions in this area will be important across our entire product
line."
Robert Schneider, executive chairman of SCM Microsystems, added, "We also
believe that our OEM business models and customer bases are highly
complementary. Shuttle will provide a substantially expanded presence in the UK,
allow us to tap the engineering talent available in India, and permit us to
combine our US operations in Silicon Valley."
"SCM Microsystems' worldwide presence will strengthen Shuttle's existing
customer relationships, particularly in Japan with customers such as Panasonic,
NEC and Olympus. The combination of our technology with the existing operations
of SCM Microsystems will help both companies deliver a broader range of products
to our current and future OEM customers," said, Alan Jones, president and chief
executive officer of Shuttle Technology.
About the Company
SCM Microsystems, Inc., with headquarters in Los Gatos, California, European
headquarters in Germany, research and development centers in Germany and France,
and offices in Japan and Singapore, is a leading provider of products and
technologies which give individuals the ability to quickly and securely control
access to, and effect the exchange of, digital information. By bridging smart
cards and other secure devices with PCs and workstations, SCM Microsystems
provides cost-effective solutions for conditional access to mobile, handheld and
desktop computers, workstations, digital video broadcasts, virtual private
networks, electronic files, e-mail and Internet firewalls. For additional
information, contact SCM Microsystems in the United States at (408) 370-4888 or
in Europe at 49-84-418960 or e-mail adapter@scmmicro.com. The company maintains
a Web site at www.scmmicro.com.
About The Shuttle Technology Group
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The Shuttle Technology Group is the world's leading developer and supplier of
plug and play interfacing technology to the major OEM manufacturers including
Hewlett Packard, SyQuest, SanDisk, Panasonic, Imation, Olympus and Fujitsu. Its
headquarters are in Wokingham, UK with offices in Fremont, California, Taiwan
and research and development facilities in Pondicherry and Madras, India. There
are in excess of 5 million users of Shuttle Technology worldwide.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
include statements regarding: the Company's ability to complete the acquisition
described above, the timing of its completion and the ability to increase the
number of the company's OEM customers. The forward-looking statements included
in this press release reflect management's best judgment based on factors
currently known and involve risks and uncertainties. Actual results could differ
materially. Factors that could cause results to differ include but are not
limited to: government regulatory approval, difficulties in integrating
Shuttle's business operations and employees into SCM, other risks associated
with acquisitions, market and customer acceptance of existing and new products,
competition, current economic conditions in Southeast Asia and general economic
conditions. For a more detailed discussion of such risks, see the Company's most
recent SEC reports, including the Registration Statement filed on Form S-1 dated
March 10, 1998, the Report of Form 10-K for the year ended December 31, 1997,
and the Report on Form 10-Q for the quarter ended June 30, 1998.
Wenn Sie eine deutsche Uebersetzung dieser Pressemitteilung moechten, wenden Sie
sich bitte an Rainer Burkhard bei EditorNetwork in Deutschland unter Telefon +49
089 23 50 91-0 oder unter e:mail 100144 3621@compuserve.com oder an Marianne
Puhr bei SCM Microsystems in Deutschland unter Telefon +49 8441 896 201 oder
unter e:mail mpuhr@scmmicro.com.
For more information on SCM Microsystems at no cost, please call 1-800-PRO-INFO
(U.S.) or 908-544-2850 (Int'l), ticker symbol SCMM.
Contact:
SCM Microsystems
John Niedermaier, 408/364-8440 (VP, Finance & CFO)
Marianne Puhr, 49 84 41 89 62 01 (Media, Europe)
or
McGrath/Powers
Kevin Toyama, 408/727-2341 (Media, U.S.)
or
EditorNetwork Medien GmbH
Rainer Burkhardt, 49 89 23 50 91 0 (Media, Germany)
or
Financial Relations Board
Lisa Horn Chainey (general)
Jordan Goldstein (investors)
Alicia Nieva-Woodgate (media)
415/986-1591