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U.S. Dept. of Defense Finance & Accounting Service Selects SCM Microsystems' Reader Technology

RMW Enterprises, Inc. to Supply 24,000 SCM Smart Card Readers UnderPartnership Agreement: 11/12/2003

FREMONT, Calif., Oct. 15 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM; Prime Standard: SMY), a leading supplier of smart card readers to the U.S. government, today announced it has delivered to RMW Enterprises, Inc., 24,000 smart card readers for use by the Defense Finance & Accounting Service.

The technology is being implemented as part of the Department of Defense's (DoD) Common Access Card program (CAC), which SCM has previously supported with 1.5 million readers. This deployment extends RMW's position as a leading provider of CAC-certified smart card solutions. RMW has supplied more than half a million smart cards and middleware seat licenses to the DoD to support CAC requirements.

One of the most advanced smart ID card programs in the U.S., the CAC smart card serves as the standard identification and physical access credential for military personnel. It is also used for secure authentication and network access. The card is issued to active duty military, selected reservists and National Guard, DoD civilian employees and selected DoD contractors. As of September 2003, DoD had issued 3.8 million smart cards on the way to four million, a goal that they expect to achieve by the end of this calendar year.

DoD has deployed an issuance infrastructure in 900 plus sites in more than 15 countries around the world, and is rolling out more than one million card readers and the associated middleware.

Future plans include: using the CAC cards for signing and encrypting email; expanding the number of portals capable of doing Web-based e-business using PKI authentication tools; adding a biometric to the cards to provide three-factor authentication; and expanding the use of the cards for physical access by adding a contactless chip. Several agencies are implementing smart card credentialing projects, including the Departments of Interior, Treasury, Homeland Security, Defense and State; the National Aeronautics and Space Administration (NASA); GSA; and the Transportation Security Administration.

"With a commitment to cross-agency interoperability and with strong mandates to improve the security of government employee credentials, the U.S. government is one of the largest smart card issuers in the U.S.," said Jason Schouw, vice president, Americas, SCM Microsystems. "As all parts of DoD move toward meeting the goal of full deployment, RMW Enterprises has the experience and high quality solutions to supply additional agencies and organizations," added Schouw.

"In addition to extending this program throughout Defense, a single credential is also driving demand for smart cards in other departments," said Reginald Widgeon, president, RMW Enterprises.

RMW also supplies solutions to the Departments of Treasury, State, FDIC, PTO, FEDSIM, the White House and others.

"As both a GSA schedule holder for smart card technology solutions and an 8(a) certified company, we look forward to supplying an increasing number of DoD civilian and commercial client initiatives with smart cards, readers and middleware," said Widgeon.

RMW Enterprises will use Class 1 Secure Card Readers that support both PCMCIA and USB interfaces. All SCM readers are compliant with PC/SC standards to allow full smart card handling capabilities of Microsoft(R) Windows(R).

About RMW Enterprises
RMW Enterprises is a premier provider of smart card technology solutions to the Federal government in support of a broad range of security, e-commerce and information technology solutions. In addition to smart card technology solutions, RMW Enterprises is a major provider of high capacity Enterprise Storage Solutions that satisfy client needs for storing, accessing and protecting the vast amounts of data needed to support today's enterprises. RMW also supplies secure web server technology that is hacker and virus-proof. RMW has taken a vital role in providing technological support for restorations efforts for developing countries destroyed by war or natural disaster. Corporate headquarters are located in Silver Spring, Maryland, for additional information please visit: http://www.rmw-enterprises.com.