Just received this press release, SCM Microsystems have acquired Microtech the chosen distributor of the IBM Microdrive in the United States along with other storage systems. "Microtech will continue to operate as a wholely owned subsidiary of SCM. Keeping its focus on the channel, Microtech will leverage SCM's considerable resources to expand it's market share of existing and new products."

Full press release:

MICROTECH ACQUIRED BY SCM MICROSYSTEMS

North Branford, CT - July 12, 2000 - Microtech International, Inc., an industry -leading provider of connectivity solutions for digital appliances, today announced it has been acquired by SCM Microsystems, Inc.

This acquisition was strategically planned to leverage the world-class technology development and manufacturing capabilities of SCM with Microtech's well established brand name. SCM has been a manufacturing partner to Microtech for a number of years, providing the company with a number of innovative products.

Microtech will continue to operate as a wholely owned subsidiary of SCM. Keeping its focus on the channel, Microtech will leverage SCM's considerable resources to expand it's market share of existing and new products.

"Microtech is pleased to be joining the SCM team," said Brian Campbell, President of Microtech. "The complementary focus of our two companies expands the opportunities to address the need for access to digital content. We are excited to combine our strengths to leverage these opportunities worldwide as we expand our presence into Europe and continue our focus in the U.S. and in Japan, which are the world's largest markets for digital photography solutions."

"We have worked closely with Microtech and its talented management team for several years, and are delighted they are joining SCM," said SCM Chairman Steve Humphreys. "Microtech has earned a strong reputation in the channel and will deepen our sales capabilities while broadening our market coverage. With Microtech, we can address through the channel new worldwide markets such as broadband access and PC security."

About Microtech International

Microtech International is an industry leader in digital connectivity solutions and personal computer memory upgrades. Digital connectivity solutions include an extensive line of PC Card readers and media, which improve the performance, capacity, and flexibility of any digital appliance. Visit the Microtech Web site at http://www.microtechint.com for complete details on product availability.

About SCM Microsystems

SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access secure digital content and services. The company operates in four primary markets -- Digital TV, Broadcast Access, PC Security and Digital Media Transfer. SCM's advanced silicon solutions, hardware and software enable secure exchange of electronic information for applications such as e- commerce and broadband content delivery by providing controlled access points to platforms such as PCs, digital cameras, and digital television set-top boxes. Global headquarters are in Los Gatos, Calif., with European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems web site at www.scmmicro.com.