1 PROSPECTUS SUPPLEMENT NO. 1 FILED PURSUANT TO RULE 424(B)(3) TO THE PROSPECTUS DATED FEBRUARY 12, 1999 REGISTRATION NO. 333-71915 PROSPECTUS SUPPLEMENT This Prospectus Supplement relates to the resale of shares of Common Stock of SCM Microsystems, Inc., par value of $.001 per share (the "Common Stock"), by the holders thereof (the "Selling Stockholders"). You should read this Prospectus Supplement in conjunction with the Prospectus dated February 12, 1999, which was delivered with this Prospectus Supplement. Capitalized terms used herein but not defined shall have the meanings given them in the Prospectus. The Prospectus is hereby supplemented to amend and included the following information in the "Selling Stockholders" table: SHARES BENEFICIALLY SHARES BENEFICIALLY OWNED PRIOR TO OWNED AFTER OFFERING(1) OFFERING(1) --------------------------------- ----------------------------- NAME OF SELLING NUMBER PERCENT NUMBER OF SHARES NUMBER PERCENT STOCKHOLDER BEING OFFERED - ------------------------------------------------------------------------------------------------------------------------- The Blanche Settlement Trust 78,943 * 78,943 0 * John Mandeen 78,943 * 78,943 0 * Ulrich Blass 120,739 * 120,739 0 * W.J. Eykyn 138,504 * 138,504 0 * Alan Jones 183,770 * 183,770 0 * Deborah Norford-Jones 108,781 * 108,781 0 * Balaji Baktha 22,290 * 22,290 0 * P.K. Venkateswaran 21,732 * 21,732 0 * Robert Thomson 8,513 * 8,513 0 * Yasuyaki Akamatsu 7,003 * 7,003 0 * George Dundon 5,015 * 5,015 0 * Andrew Nott 1,671 * 1,671 0 * Michael Edwards 1,370 * 1,370 0 * Peter Murphy 33,435 * 33,435 0 * 2 SHARES BENEFICIALLY SHARES BENEFICIALLY OWNED PRIOR TO OWNED AFTER OFFERING(1) OFFERING(1) --------------------------------- ----------------------------- NAME OF SELLING NUMBER PERCENT NUMBER OF SHARES NUMBER PERCENT STOCKHOLDER BEING OFFERED - ------------------------------------------------------------------------------------------------------------------------- W.J. Eykyn Settlement Trust 32,599 * 32,599 0 * Total 843,308 6.0 843,308 0 * - -------------------- * Less than 1% (1) Based on 14,006,477 shares of Common Stock outstanding as of January 31, 1999. -------------------- INVESTING IN SCM MICROSYSTEMS, INC. COMMON STOCK INVOLVES RISKS. SEE "RISK FACTORS" BEGINNING ON PAGE 4 OF THE PROSPECTUS. -------------------- THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMIS- SION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. The date of this Prospectus Supplement is February 25, 1999.